Cost of production and competitiveness in the Association of Indigenous Women "Mushuk Kawsay" Chimborazo, 2022

Abstract

The main object of the research is to design a total cost control for the production of mashua yogurt, as a competitiveness strategy for the year 2022, according to the qualification of the members’experiences, the organization's requirement and compliance with the regulations established by control entities, for this reason the entity has carried out processes focused only on the sale of its product, leaving aside the control of fixed and variable costs of production for the valuation of finished inventories, for the collection of information the field methodology, dialogue with the partners in charge of the production process, verification of processes, analysis of documentation, the research has been qualitative and quantitative, with the support of bibliographic sources allowed the identification of the raw material, direct labor, and general manufacturing expenses, for the analysis of clear and precise distribution costs such as administrative expenses. assets, sales expenses, and financial expenses, which facilitate pricing strategies, for these aspects it is considered that the application of a total costing or absorption costing system should be implemented in the production process, since the costs of manufacturing are these total variable costs and total fixed costs are part of this, with this it will facilitate accounting control, comply with the Servicio de Rentas Internas (SRI), reports to the partners and other control entities, financial administration, and the application of management processes of quality.