Main Article Content

Abstract

Lately, environmental problems such as pollution, poorly managed waste, and even depleting green land, have become issues that require companies to take action. But on the other hand, companies need well-allocated production costs, which of course have the aim of increasing company profits. That’s why, the purpose of this research is to analyze The Effects of Production Costs and Environmental Costs on Sales for primary and chemical industry firms with ISO 14001 certification that are traded on the Indonesia Stock Exchange. Specifically, SPSS version 27 is utilized for conducting multiple regression analyses as part of a quantitatively descriptive methodology. Annual and sustainability reports for 5 years from 2017 to 2021 out of 8 companies that have gone through a purposive sampling process are used as research samples. Based on the multiple regression analysis that has been carried out, the results show that partially, production costs have a significant effect on sales, and environmental costs have no significant effect on sales. Meanwhile, simultaneously both production costs and environmental costs have a significant effect on sales. Meaning that production costs and environmental costs are interconnected with each other, so when sales continue to increase, production costs and environmental costs will also increase.

Keywords

Environmental Cost Production Cost Sales

Article Details

Author Biography

Valentine Siagian, Universitas Advent Indonesia

Lecturer at Faculty of Economics, Universitas Advent Indonesia

How to Cite
Darmaputri, I. Z., & Siagian, V. (2023). Profit or Planet? : Impact of Production and Environmental Costs on Sales. Ilomata International Journal of Tax and Accounting, 4(2), 164-180. https://doi.org/10.52728/ijtc.v4i2.695

References

  1. Bai, Q., Gong, Y. (Yale), Jin, M., & Xu, X. (2019). Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory. International Journal of Production Economics, 208, 83–99. https://doi.org/10.1016/j.ijpe.2018.11.008
  2. Callan, S. J., & Thomas, J. M. (2013). Environmentall Economics alnd Malnalgement: Theory, Policy, alnd Alpplicaltions. 23.
  3. de Jong, P., Paulraj, A., & Blome, C. (2014). The Financial Impact of ISO 14001 Certification: Top-Line, Bottom-Line, or Both? Journal of Business Ethics, 119(1), 131–149. https://doi.org/10.1007/s10551-012-1604-z
  4. Deepak, B., Bishnoi, N., & Mona, S. (2015). Challenges and Benefits of Implementing an Environmental Management System: A review. International Journal of Advanced Scientific And Technical Research, 160.
  5. Dzakiyyah, F., Ishak, J. F., & Kunci, K. (2022). Pengaruh Biaya Kualitas dan Biaya Produksi Terhadap Penjualan ( Studi Kasus pada PT . XYZ ). Prosiding The 13th Industrial Research Workshop and National Seminar Bandung, 13–14.
  6. Feng, T., & Wang, D. (2014). The Influence of Environmental Management Systems on Financial Performance : A Moderated-Mediation Analysis. https://doi.org/10.1007/s10551-014-2486-z
  7. Hansen D.R., & Mowen M.M. (2018). Cornerstones of Cost Management (4th Edition). Cengage Learning.
  8. Harnanto. (2017). Alkuntalnsi Bialyal Sistem Bialyal Historis. CV. AlNDI Alndi Offset.
  9. Hidalyah , Al., & Sulakson, H. (2021). Alnallisis Falktor Falktor Yalng Memengalruhi Penjuallaln Online paldal malhalsiswal STIE Malndallal Jember. RELAlSI Jurnall Ekonomi, 244-262.
  10. Hong, P., Jagani, S., Kim, J., & Youn, S. H. (2019). Managing sustainability orientation: An empirical investigation of manufacturing firms. International Journal of Production Economics, 211(June 2017), 71–81. https://doi.org/10.1016/j.ijpe.2019.01.035
  11. Ikhsan, Al. (2009). Alkuntalnsi Malnaljemen Lingkungaln Edisi 1. Gralhal Ilmu.
  12. ISO Central Secretariat. (2015). ISO 14001 - Introduction to ISO 14001:2015.
  13. Jo, H., Kim, H., & Park, K. (2015). Corporate Environmental Responsibility and Firm Performance in the Financial Services Sector. Journal of Business Ethics, 131(2), 257–284. https://doi.org/10.1007/s10551-014-2276-7
  14. Kwon, H. B., & Lee, J. (2019). Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms. International Journal of Production Economics, 211(December 2018), 1–14. https://doi.org/10.1016/j.ijpe.2019.01.034
  15. Loorbach, D., Avelino, F., Haxeltine, A., Wittmayer, J. M., O’Riordan, T., Weaver, P., & Kemp, R. (2016). The economic crisis as a game changer? Exploring the role of social construction in sustainability transitions. Ecology and Society, 21(4). https://doi.org/10.5751/ES-08761-210415
  16. McGuian, J., Moyer, R., & Harris, B. (2016). Managerial Economics: Applications, Strategies and Tactics. Cengage Learning.
  17. Mulyadi. (2015). Akuntansi Biaya. Sekolah Tinggi Ilmu Manajemen YKPN:
  18. Myrelid, A., & Olhager, J. (2019). Hybrid manufacturing accounting in mixed process environments: A methodology and a case study. International Journal of Production Economics, 210(November 2018), 137–144. https://doi.org/10.1016/j.ijpe.2019.01.024
  19. Nababan, L., & Hasyir, D. (2019). Pengalruh Environmentall Cost daln Environmentall Performalnce terhaldalp Finalnciall Performalnce (Studi Kalsus paldal Perusalhalaln Sektor Pertalmbalngaln Pesertal PROPER. E-Jurnall Ekonomi Daln Bisnis Universitals Udalyalnal, 8(3), 259.
  20. Panjaitan, R. (2018). Manajemen Pemasaran (Sukarno, Ed.). Sukarno Pressindo.
  21. Raiborn, A., & Kinney, R. (2013). Cost Accounting Principles. Cengage Learning.
  22. Rupaida, S. A., & Bernardin, D. E. Y. (2016). Pengaruh Biaya Produksi dan Biaya Promosi terhadap Penjualan PT. Ultrajaya Milk Industry Tbk. Ekspansi, 8(2), 273.
  23. Sadiq, N., & Khan, A. (2019). ISO 14001 Step by Step: Al Pralcticall Guide - Second edition. IT Governalnce Publishing.
  24. Soytas, M. A., Denizel, M., & Durak Usar, D. (2019). Addressing endogeneity in the causal relationship between sustainability and financial performance. International Journal of Production Economics, 210(January 2018), 56–71. https://doi.org/10.1016/j.ijpe.2019.01.016
  25. Suki, M. (2016). Consumer Environmentall Concern alnd Green Product Purchalse in Mallalysial: Structurall Effects of Consumption Vallues. Journall of Clealner Production:, 2904.
  26. Sultoni, M. H. (2020). Corporalte Sociall Responsibility (Kaljialn Korelalsi Progralm CSR Terhaldalp Citral Perusalhalaln. Dutal Medial Publishing.
  27. Surjaya, M. A. (2022, September 28). Terbukti Cemari Lingkungan, Pemkab Bekasi Sanksi Pabrik Keramik di Cikarang. Metro.Sindonews.Com.
  28. Treacy, R., Humphreys, P., McIvor, R., & Lo, C. (2019). ISO14001 certification and operating performance: A practice-based view. International Journal of Production Economics, 208(December 2018), 319–328. https://doi.org/10.1016/j.ijpe.2018.12.012
  29. Waltho, C., Elhedhli, S., & Gzara, F. (2019). Green supply chain network design: A review focused on policy adoption and emission quantification. International Journal of Production Economics, 208, 305–318. https://doi.org/10.1016/j.ijpe.2018.12.003
  30. Xi Chen, & Bertrand M. Koebel. (2017). Fixed Cost, Variable Cost, Markups and Returns to Scale. Annals of Economics and Statistics, 127(127), 61. https://doi.org/10.15609/annaeconstat2009.127.0061

Most read articles by the same author(s)