Production Costs and Profitability in The Production of Toquilla Straw Hats, Barcelona Commune, Santa Elena. 2022

Abstract

The production of toquilla straw hats in the Barcelona commune involves a traditional process as a culture of the local community, from the cultivation of the plant called toquillales to the manually woven hat. This activity, in addition to preserving the native crafts of the commune, contributes to the economy as the main source of their income. Ignorance of the importance of production costs in an activity prevents said items from having a reasonable value for sale. This is reflected in the difference in the purchase amount of the good, whose value in shopping centers can triple the value. value that they determine for marketing, therefore, the present research aims to propose a production cost system using costing tools for determining profitability in the production of toquilla straw hats in the Barcelona commune, Santa Elena, 2022. The research methodology applied in this work was based on a quantitative approach. To collect data, a survey was carried out in which it was determined that 75% of the community members are unaware of the application of cost systems, which is why it is It is necessary to encourage the adaptation of these systems to manufacturing activities. From the results obtained, it can be established that through the application of this proposal it was possible to identify the items incurred in each phase of production of the good, allowing resources to be optimized and determining the profitability of the production process.