“THE INFLUENCES OF COGS (COST OF GOODS SOLD) AND SALES VOLUME

ON NET PROFIT”
(Case Study on Food and Beverage Subsector Companies Listed on the
Indonesia Stock Exchange 2014-2016)

,Annisa Nurfaidah1,Eka Reski Andini2 ,WynaldoAdithias Aries 3

Prof. Dr.Mediaty, SE., Ak., M.Si., CA4
Dr. Kartini, SE., Ak., M.Si., CA5

1
Magister of Accounting, Faculty of Economics and Business, Hasanuddin University
(email: Annisa.nurfaidah 96 @ gmail .com)
2
Magsiter of Accounting, Faculty of Economics and Business, Hasanuddin University
(email: Ereskyandini@gmail.com )
3
Magister of Accounting, Faculty of Economics and Business, Hasanuddin University
(email: wynaldoaries013@gmail.com )
4
Magister of Accounting, Faculty of Economics and Business, Hasanuddin University
(email: Unhasmediaty@gmail.com)
5
Magister of Accounting, Faculty of Economics and Business, Hasanuddin University
(email: hanafikartini @ fe.unhas.ac.id )

Contact Address:
Annisa Nur Faidah
economics and Business Faculty
Hasanuddin University
Makassar, 90245
Email: Annisa.nurfaidah96@gmail.con
 Abstract
This research was conducted at food and beverage companies sent on the
Indonesia Stock Exchange. The purpose of this study is analyze the cost of production
against net income and affect the sales volume of net income manufacturing Food and
beverage subsectors found on the Indonesia Stock Exchange 2016-2018 period. The
sampling technique used in this study was nonprobability sampling with purposive sampling
type. The sample in this study consisted. annual financial report, and only 14 companies that
meet the research criteria. The results in this study are variable cost of production has a
regression coefficient that is equal to -0.420, there is no significant influence with a negative
direction between the cost of production to net income and the sales volume variable has a
regression coefficient of 6.214 which is positive sales volume on net income where the
greater the volume of sales, it will increase net income.
Keywords : Cost of Production, Sales Volume, and Net Income.

INTRODUCTION
The market capital has become a part of which is important in the activity of financing
. That is because the capital market is a liaison between investors, companies ( entities ) and
government institutions through the activities of the trading stages of long - term financial
instruments . The market capital is also a place where dipertemukannya two interests
between parties who have excess funds (investor) and parties that require additional funds
(issuer).
Market capital was very instrumental important in Indonesia in terms of supporting the
growth of the economic sector of the real , things it can be seen from as growth markets
Indonesian capital, in case this is the activity that is contained in the Stock Exchange
Indonesia, would be in line also with the increasing number of entities whose activities listed
in on the Indonesia Stock Exchange (listing). Not only limited to supervise the movement of
the number of entities whose activities listed in the Stock Exchange Indonesia (BEI), but
subsequently have to continue to carry out surveillance of the Index Price Shares (IHS) any
entity , because the things that be evidence of apparent movement of the price of the stock ,
while the activity of the development of trade in Stock Exchange Indonesia can be reviewed
on the Index Price Stock Composite (JCI) for the whole entity that has been recorded.

The food and beverage sub-sector manufacturing company is one of the companies
whose names have been listed on the Indonesia Stock Exchange. The food and beverage
sub-sector manufacturing company, is one of the industries considered, because it has very
good prospects when viewed in terms of its shares which are very actively traded on the
stock exchange. That is because, the sector has a fairly high growth rate and is expected to
last for a long period of time. This phenomenon can be examined from the consumptive
behavior of Indonesian people and the high number of Indonesian population growth, so it is
estimated that this will be in line with the growth of the food and beverage industry.
There are 18 food and beverage sub-sector companies listed on the Indonesia Stock
Exchange, the food and beverage sub-sector is in the consumer goods industry sector
group. Researchers only used 14 companies as research samples because PT.Campina Ice
Cream, PT.Sriguna Pritamirta Cleo, PT.Buyung Poetra Sembada and PT.Prima Cakrawala
Abadi just joined to offer their shares on the Indonesia Stock Exchange in 2017, so there are
no data reports yet finance before 2017.
The company must minimize the costs incurred in the production process, so that it
will have an impact on the cost of production that can be set to the maximum extent possible,
and the determination of the selling price in accordance with its portion. This is very
necessary because operational costs are a determining factor in the success of the
company in achieving its objectives. Because the products produced by the company
through a long production process and the product must reach consumers through a series
of activities that support each other. Without targeted operational activities, the
products produced will not have benefits for the company (Sipangkar, 2008). Another factor
determining the success of a company is sales volume. The company must aggressively
market its products to customers so that the target sales volume can be achieved to the
maximum. Not surprisingly, each company will have a specific strategy in the mission of
achieving sales volume targets.
The cost of production will be the basic reference in determining the selling price, so
that the next sales volume can be determined. Riwayadi (2014: 47) states that production
costs are costs incurred in the production function. The production function is a function that
processes raw materials into finished goods. Generally, a company's success can be
assessed for its success and ability to make a profit. Because it is expected that the profits
obtained by the company, the company can develop and expand its field. In order for this to
be achieved, the company must be able to maintain its sales volume, so that the
profits derived will remain static.
The opinion of Budi Rahardjo (2016: 33), the greater the sale, the greater the profit
generated. This is inversely proportional to the opinion according to Mulyadi (2012: 11) which
states the small production costs, the resulting profit will be large. Thus, this difference of
opinion motivates researchers to conduct further research with the title " Effect of Cost of
Production and Sales Volume on Net Profit (Case Study on Food and Beverage
Subsector Companies Listed on the Indonesia Stock Exchange in 2014-2016)"
Based on the above background, the formulation of the problem in this study are: How
is the cost of production, sales volume and net profit in the manufacturing company food and
beverage sub-sector contained in the Indonesia Stock Exchange for the period of 2016-
2018? Can be a production costs and sales volume have a significant effect on Net Profit for
companies in the food and beverage sub-sector contained in the Indonesia Stock Exchange
for the 2016-2018 period?
LITERATURE REVIEW

2.1 Overview of Theories and concepts

2.1.1 Production Theory
According to Sadono Sukirno (2000), the understanding of the production function is
related to the factors of production and the level of production produced, where the factor of
production is often referred to as the input and the amount of production is called the
output. Whereas Salvatore (1997) defines production as the end result of an economic
process or activity by utilizing several inputs or in other words combining various inputs to
produce outputs. According to Sadono Sukirno (2000), the production function can be
mathematically described as follows:
Q = f (K, L, R, T)
Where: K = Total capital stock or capital stock
L = Number of workers (which includes types of labor)
T = The level of technology used
R = Cost of land rent
Q = Number of productions produced

From the above equation it is explained that the amount of output depends on a
combination of the use of capital, labor, and raw materials. The more precise the input
combination, the more likely the output can be produced optimally. Salvatore (1995) explains
the production function which shows the maximum amount of commodities that can be
produced per unit of time for each alternative input combination, when using the best
available production techniques.

2.1.2 Definition of Cost of Production

Production costs are costs that occur in the production function. The production
function is a function that processes raw materials into finished goods. According to
Riwayadi (2014: 34). Armanto Witjaksono (2013: 16-17) describes manufacturing / product
costs that include direct materials, direct labor, and factory overhead costs .
The cost of production is the total cost that becomes the identity of the finished
goods inventory before the new behavior is sold on the market. If there is no beginning
inventory or ending inventory, the cost of production will automatically equal the cost of
production. The cost of production includes part of the cost because it is an expenditure to
get benefits from the goods or products purchased and the benefits have not yet occurred or
have not been received (Salman, 2013: 23).
Mulyadi (2010: 17) states that the method of determining the cost of production is a
way of calculating cost elements into the cost of production. In calculating the cost elements
into the cost of production there are two approaches, full costing and variable costing. Full
costing is a method of determining the cost of production that takes into account all elements
of production costs into the cost of production, which consists of the cost of raw materials,
direct labor costs, and factory overhead costs, both those that behave variable or fixed, thus
the cost of production according to full costing consists of elements of production
costs. Mulyadi (2010: 18) states that variable costing is a method of determining the cost of
production which only takes into account production costs that behave in a variable way into
the cost of production, consisting of raw materials, direct labor costs, and variable factory
overhead costs.

2.1.3 Definition of Sales Volume

According to Private (2005: 6) sales are defined as an effort by humans to deliver
goods to those who need them in exchange for money at a price determined by mutual
agreement. According to Westwood (2011: 4), sales are straightforward concepts which
include efforts to persuade customers to buy a product. Meanwhile, according to
Kotler (2012: 17) sales are interactions between individuals meeting each other that
are shown to create, improve, control or maintain an exchange relationship that is beneficial
for other parties.
Sales volume is a measure that indicates the amount or amount of goods or
services sold (Daryono, 2011: 187). According to Marbun (2010: 225) sales volume is the
total goods sold by companies within a certain period. The greater the amount of sales the
company makes, the more likely it is that the profit will be made by the company. Meanwhile,
according to Rangkuti (2009) in Prihantara (2015) sales volume is an achievement
expressed quantitatively in terms of physical or volume or unit of a product. From the
definition above, it can be said that sales is a business carried out by offering a product to
consumers in the hope of obtaining profits and the volume of sales is the total amount
generated from the activities of selling goods.

2.1.4 Definition of Net Income

Net income can mean different so it always requires clarification. Tight net profit
means after all deductions (as opposed to only certain deductions that are used against
gross profit or margins). Net income usually refers to profit after deducting all operating
costs, especially after deducting fixed costs or fixed overhead costs. This is different from
gross profit which usually refers to the difference between sales and direct costs of products
or services sold (also referred to as gross margins or gross profit margins) and of course
before deducting operating costs or overhead costs. The net profit figure typically refers to
income before deducting taxes the company , in this case the term often used is the net
profit before tax (earnings before tax or EBT).

2.1.5 Cost of goods sold and Net Profit

One way that can be used to obtain optimal profits is to reduce the cost of
production and operational costs to be incurred by the company. The better the quality of raw
materials, the lower the level of damage to their products. High production costs have an
impact on the level of sales. In quantity, a company has limited its production output by
adjusting the production costs that must be incurred. When the product yield is reduced in
quantity, of course it also affects the profits obtained. Bastian Bustami and Nurlela (2013: 49)
define that the cost of production can be calculated through a collection of production costs
consisting of direct raw materials, direct labor, and factory overhead costs plus product
inventory in the initial process and less inventory of products in the final process.

2.1.6 Effects of Sales Volume and Net Profit

In this case, to find out the relationship between sales volume and profit, it can be
seen in the components in the interrelated profit and loss statement of the company which
states that there is a close relationship regarding the relationship between the
two. K arena in this case can d iketahui that profits would arise if the sale of
products is large compared with the price of goods sales were excluded. Net sales can also
be called sales volume, which is the final result achieved by the company from the sale of
products by marketing. If the sales volume increases, the company's profit increases, on the
contrary if the sales volume decreases, the company's profit also decreases. Sales volume is
the most important thing that must be evaluated for the possibility of the company so as not
to suffer losses.

2.2 Empirical Review

Research by Al Hayek, MA (2018), with the title "The Relationship Between Sales
Revenue and Net Profit with Net Cash Flows from Operating Activities in Jordanian Industrial
Joint Stock Companies". The purpose of this study was to identify the relationship between
sales revenue and net income with net cash flow from operating activities in Jordanian joint-
stock industry companies. To achieve this goal, the researchers conducted analytic studies
based on descriptive analytic methods through the use of statistical methods to analyze
research data represented by actual data taken from relevant companies for the period
(2010-2017). The results show the validity of the H0 hypothesis, namely there is a
statistically significant relationship between sales revenue and net income with net cash flow
from operating activities in Jordanian joint-stock industry.
Research by Anugrah Aditia Pani (2015), with the title "The Effect of Operational
Costs, Sales Volume, and Trade Payables To Net Income (Case Survey on Mining
Companies Listed in Indonesia Stock Exchange Period 2010-2014)". The purpose of this
study was to examine the effect of operational costs, sales volume, and trade payables on
net income in mining sector companies listed on the Indonesia Stock Exchange from 2010 to
2014. The research method used was descriptive verification analysis method with the unit of
PT. studied from mining sector companies listed on the Jakarta Stock Exchange in 2010-
2014 with a population of 115 and a research sample of 35 financial statements from seven
companies. The data analysis technique used is multiple linear regression analysis and
assisted by the SPSS version 23 application program. The results of the study indicate that
there is a significant influence of operating costs on net income with a negative relationship,
sales volume has a significant effect on net income with a positive relationship, and debt
influence significant effect on net income with a positive relationship. Partially, net profit is
dominantly influenced by sales volume compared to operating costs and trade payables.
 Research by JCIhemeje, Geff Okereafor, and Bashir M. Ogungbangbe (2015), under
the heading "Cost-volume-profit Analysis and Decision Making in the Manufacturing Industries
of Nigeria". The purpose of this study is to determine the effect of cost-volume profit analysis
in manufacturing industry decision making. This study combines survey research and
longitudinal research design. Primary data were analyzed using regression and correlation
techniques. The results revealed that the value of sales of a product and the number of
products produced had a positive effect on profits generated on the product, also that there
was a significant relationship between production costs and profits. Reordering and quantity
of economic orders are also determined as a basis for assessing decision-making
opportunities.
Research by Nugroho (2018) titled "Analysis Determination of Cost of Production
Herbal Medicine by Using Full Costing Method A Case Study of Micro Herbs Bu Tini
Yogyakarta", to discuss the concerning system product costing, researchers included
overhead variable and fixed in the cost of products through manufacturing account. This
approach to determining product costs is called absorption or full costing. Determination of
full cost plus pricing consists of: (1) calculating material costs, direct labor, and other direct
costs, (2) adding a certain percentage to overhead and sales costs, and (3) adding "fair"
profits. The purpose of this research is to find out whether there is a difference between the
calculation of the cost of production of the UMKM Jamu Bu Tini production and the full
posting method. The conclusion of this research is that there is a difference in the calculation
of the cost of production according to the company using the full post method, as evidenced
by the difference in the calculation of the cost of production by 0.11% for the kencur rice and
1.19% for the yellow turmeric herbal.

2.3 Conceptual Framework

Harga Pokok
Produksi
(X1)

Net Profit (Y)

Sales Volume
(X2)

2.4 Hypothesis
2.4.1 Effect of Cost of Production on Net Profit
According to Mulyadi (2005: 11), production costs affect net income with the
statement that production costs are an economic source that needs to be sacrificed to
produce output, where output is expected to be greater than the input so that the
organization's activities gain profits or residual results of operations. According to Carter
William (2008: 129), the cost of production can determine how much profit is, with the
statement that the rate of profit obtained is determined by the volume of production, the
higher the volume of production the higher the cost of production. The more production
volume achieved, the higher the profit to be obtained
H1: Cost of Produsion is significantly positive effect on Net Profit

2.4.2 Effect of Volume Sales To Profit Net

The main factor influencing the size of earnings is income. Revenues can be
obtained from the sale of company merchandise. The success of the company can be seen
in the level of profits obtained by the company itself because the main goal of the company
in general is to obtain maximum profit and profit is the deciding factor for the survival of the
company. This research is in line with research conducted by Hermansah et. Al (2008),
Tumanggor et. Al (2017), and Astri Fitrihartini (2017) which states that sales volume
significantly influences the company's net profit.
H2: Sales Volume has a significant positive effect on Net Profit

RESEARCH METHOD
3.1 Research Characteristics
This type of research is a type of quantitative or explanatory research, because it
explains about the effect of a variable with other variables, namely research on the effect of
cost of goods manufactured and sales volume on net income. The formulation of the problem
is stated in the question sentence, then the researcher uses supporting theory to answer the
question.

Table 3.1 Research Characteristics

No Research Characteristics Type
1 Based on Method Quantitative
2 By Purpose Descriptive and Conclusive (Causal)
3 Based on Investigation Type Causal
4 Based on Researcher Involvement Do not intervene in the data
5 Based on Data Analysis Unit Organization
6 Based on Research Settings Non Contrived Settings
7 Based on Implementation Time Time Series

3.2 Operational Variables

Basically, research variables are everything in whatever form has been determined
by researchers to be studied so that information can be obtained about it and then draw
conclusions from the results of research (Sugiyono, 2011: 2). As according to Sekaran
(2011: 115), research variables are all things that can distinguish or bring variations in
values. Values can have various results from different times for the same object or person, or
at the same time for different objects. This study will use the dependent variable (the
dependent variable) and the independent variable (the independent variable).
3.2.1 Independent Variable (X)
According to Sugiyono (2010: 39) This variable is often referred to as
a stimulus variable , predictor, antencedent. In Indonesian it is often called variable free. The
independent variable is a variable that influences or becomes because of changes or
emergence of the dependent variable.
The independent variables in this study are:
1. Cost of goods sold
Bastian Bustami and Nurlela (2013: 49) define that the cost of production is a
collection of production costs consisting of direct raw materials, direct labor, and
factory overhead costs plus product inventory in the initial process and less inventory
of products in the final process.
2. Sales Volume
The volume of sales is the final result achieved by the company from the sale of
products produced by the company. According to Daryono (2011: 187), sales volume
is a measure that indicates the number or magnitude of the number of goods or
services sold. The greater the amount of sales the company makes, the more likely it
is that the profit will be made by the company.

3.2.2 Dependent Variables (Y)

Dependent or dependent variable is a variable that is affected or which is due to the
existence of an independent variable (Sugiyono, 2012: 39). The dependent variable in this
study is net income. According to Ismaya (2010), net income is the difference in income from
expenses charged and represents a net increase in capital from business
activities. Meanwhile, according to (Soemarsono 2004: 227), net income can be obtained
from the reduction of income, expenses and taxes.

3.3 Population and Samples

3.3 .1 Research Population
Population is a generalization area consisting of: objects / subjects that have certain
qualities and characteristics determined by researchers to study and then draw conclusions
(Sujgiyono, 2016: 80). In this study, the population used is the food and beverage subsector
company listed on the Indonesia Stock Exchange 2014-2016.

3.3. 2 Research Samples

The sample is part of the number and characteristics possessed by the population
(Sugiyono, 2016: 81). The sampling technique used in this study is nonprobability
sampling with purposive sampling. According to Sugiyono (2016: 84), Nonprobability
sampling is a sampling technique that does not provide equal opportunity / opportunity for
each element or member of the population to be selected as a sample. Purposive
sampling according to Sugiyono (2016: 85) is a sampling technique with certain
considerations. The sample selection in this study is based on the following criteria:
1. Enterprise of the food and beverage sub-sector listed on the Indonesia Stock
Exchange during the observation period of 2014-2016
2. Food and beverage sub-sector companies that consistently publish audited financial
statements during the observation period of 2014-2016

Table 3.2 Criteria for Taking Samples

NO CRITERIA JUMLAH
1. Food and beverage sub-sector companies listed on the Indonesia 18
Stock Exchange during the observation period from 2014-2016
2. Food and beverage sub-sector companies that publish (4)
inconsistently audited financial statements during the observation
period from 2014-2016
The number of samples used as research objects 14
Total data for 2014-2016 14 companies X 3 years 42

Based on these criteria the samples studied were 14 food and beverage sub-sector
companies with a study period of 3 years. Then the total sample used in this study was 42
samples. The following 14 samples of the food and beverage sub-sector companies used,
namely:
Table 3.3 Sample List of Companies Manufacturing Food and Beverage Subsectors
NO COMPANY NAME IDX CODE
1 PT.Tiga Pilar Sejahtera Food Tbk AISA
2 PT. Wilmar Cahaya Indonesia Tbk CEKA
3 PT. Delta Djakarta Tbk DLTA
4 PT. Indofood CPB Sukses Makmur Tbk ICPB
5 PT. Indofood Sukses Makmur Tbk INDF
6 PT. Multi Bintang Indonesia Tbk MLBI
7 PT. Mayora Indah Tbk MYOR
8 PT. Nippon Indosari Corporindo Tbk ROTI
9 PT. Sekar Bumi Tbk SKBM
10 PT. Sekar Laut Tbk SKLT
11 PT. Ultrajaya Milk Industry & Trading Company Tbk ULTJ
12 PT. Prashida Aneka Niaga Tbk PSDN
13 PT. Siantar Top Tbk STTP
14 PT. Tri Banyan Tirta Tbk ALTO
(Source: idx.co.id and processed by the author)

3.4 Data Collection and Data Sources

In this study using quantitative data using secondary data. According to Sugiyono
(2016: 137) secondary sources are sources that do not directly provide data to data
collectors, for example through other people or through documents. Some secondary data
sources include statistical bulletins, government publications, information published from
inside or outside the company, data available from previous research, case studies and
library documents, online data, websites and the internet. In obtaining these data can use
the method:
1. Field Study
The source of the data in this study is to collect data on food and beverage sector
companies that are consistently registered at
Indonesia Stock Exchange in 2014-2016.
2. Literature Study
Literature study is done by obtaining, studying and reading journals, books, and other
references to gain an understanding of sales volume, operating costs, and net profit.

3.5 Method of Analysis

The data analysis method used in this research is descriptive statistics using multiple
linear regression analysis along with the statistical tests needed to run it. The analytical
method was carried out with the help of the Statistical Service Program Solution (SPSS)
version 23 for Windows, a computer program specifically created to process data
statistically.

3.5.1 Analysis of Linear Regression

Multiple regression analysis was used as a statistical analysis technique in this
study. The independent variables in the multiple linear regression model number more than
one variable. For data that meets the assumption of normality and is free from various
assumptions, then the multiple linear regression model is a regression model that is suitable
for use (Refgia, 2017).

3.5.2 Testing Classical Assumptions

Before conducting multiple linear regression analysis, the data are tested first by
testing classic assumptions with the aim of getting a good regression model, which must be
free from Multicollinearity, Heteroscedasticity, and Normality.

3.5.2.1 Normality Test

The test is carried out using Kolmogorov-Smirnov (KS) analysis on the basis of
decision making if the significant value is greater than 0.05 then the data is normally
distributed.
3.5.2.2 Multicollinearity Test
Can be detected by using the VIF ( Variance Inflation Factor ) value and tolerance . A
data said that there is no multicollinity is if the number of processed tolerance > 0.10 and
VIF <10.

3.5.2.3 Test Heterokedastitas

To detect whether there is heteroscedasticity in the regression model used glacier
test with the basis of decision making if the significant value is greater than 0.05, then there
is no heteroscedasticity in the regression model.

3.5.2.4 Autocorrelation Test

In this study, the autocorrelation test was performed by looking at the Durbun
Watson ( DW ) value. The way to detect whether the model used is experiencing
autocorrelation symptoms is to look at the Durbin Watson statistical value .

3.5.3 Test Coefficient Regression In Partial (t test)

The test t shows that how far the influences of each variable are independently as
individuals in explaining variation of the dependent variable. In the t test, the value of t count
will be compared with the value of t table, do the ways as follows:
a. When the t count > t table or a probability < level of significance (Sig <0 , 05 ), the Ha
accepted and Ho is rejected , the variables independently influence on
variabeldependen .
b. If t arithmetic <t table or probability > level of significance (Sig> 0 , 05 ), then Ha is
rejected and Ho is accepted , the independent variable has no effect on the
dependent variable .

RESEARCH RESULTS
Classical Assumption Test
1. Data Normality Test
Testing for normality using analysis chart performed by using the histogram to
describe the variable dependent as axis vertical , while the value of residual standardized
described as the axis horizontal. If the residual standardized regression histogram forms a
curve like a bell, then the residual value is declared normal. Another way to test normality
with a graphical approach is to use the normal probability plot, which is to compare the
cumulative distribution of actual data with the cumulative distribution of the normal
distribution (Suliyanto) , 2011 ).
 Based on the histogram display, it can be seen that the dependent curve and
standardized residual regression form an image like a bell. Therefore based on the normality
test, regression analysis is feasible even if there is a slight slope.

Based on a Normal PP Plot of Regression Standardized seen that the points

spread around the diagonal line. Therefore based on the normality test, regression analysis
is feasible even though there are a few plots that deviate from the diagonal line.

2. Uji Multicollinearity
Multicollinearity test aims to test whether the regression model found a correlation
between independent variables (independent). A good regression model should not occur
correlation between independent variables. (Ghozali, 2016: 103). One way to test
multicollinearity is to look at the value of tolerance and Variance Inflation Factor (VIF). If
the tolerance value is >0.10 and VIF<1 0, then there is no multicollinity
of interest. Conversely, if the tolerance value <0.10 and VIF>10, then there is a
multicollinearity disorder in the study. The results of multicollinearity testing in this study are
as follows.
Table 1 Multicollinearity Test Results

Coefficientsa
Model Collinearity Statistics
Tolerance VIF
(Constant)
COST OF GOODS
1 .001 1.000
SOLD
SALES VOLUME .001 1.000
a. Dependent Variable: NET PROFIT
Source : Secondary Data Processed 2019

The result VIF calculation also showed the same that there is no independent
variable which has VIF more than 10. Thus, it can be concluded that there is no
multicollinearity between variabel independent in the research of this and the model
regression decent to wear.

3. Autocorrelation Test
The Durbin-Watson Test (DW Test) is a very popular test to test whether there is an
autocorrelation problem from an estimated empirical model.
Table 2. Autocorrelation Test
Model Summaryb

Model R R Square Adjusted R Std. Error of the Durbin-Watson

Square Estimate

1 .986a .973 .972 234149.770 2.568

a.Predictors: (Constant), SALES VOLUME, COGS
b. Dependent Variable: NET PROFIT
Source : Primary Data Processed 2019

Not happen autocorrelation k arena grades Durbin-Watson ( 2.568 ) lies between

the value du = 2.324 and the value of 4-du = 3.002 (Suliyanto 2011 ).

4. Heteroscedasticity Test
Heteroscedasticity testing is carried out to test whether in a regression model there is
an unequal variance from the residuals of one observation to another. If the variance from
one observation residual to another observation is fixed, then it is called homoscedasticity,
and vice versa if it is different is called heteroscedasticity. A good regression model is if there
is no heteroscedasticity.
 Table 3 Heteroscedasticity Test Results
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 246.486 42.360 5.819 .000
COST OF GOODS
-.038 .265 -.041 -.145 .885
SOLD(X1)
VolumePenjualan(X2) -.256 .230 -.312 -1.113 .272

a. Dependent Variable: Net Profit (Y)

Source : Secondary data processed 2019

Based on the above output it is known that the significant value (Sig.) For the HPP
variable (X1) is 0, 88 5. Meanwhile , the significant value (Sig.) For the Sales Volume
variable (X2) is 0.2 7 2 . Because the value significantly both variables at the top is smaller
than 0 , 05, then in accordance with the basic decision -making in the test glacier , can
disimpilkan that occur symptoms of heteroscedasticity in the model regression .

4.1.3 Hypothesis Test

Analysis of the data used in this study is multiple linear statistical analysis. Multiple
linear regression model used in this study to test the independent variables ie, performance-
based budgeting (X 1 ), the clarity of the budget target (X 2 ) against the dependent
variable, performance accountability of government agencies (Y) shown in the following
table.
Table 4 Results of Multiple Linear Regression Tests

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta

1 (Constant) 246.486 42.360

COST OF GOODS
-.038 .265 -.041
SOLD(X1)

VolumePenjualan(X2) -.256 .230 -.312

a. Dependent Variable: Net Profit (Y)

Source : secondary data processed 2019

In the table at the top , can be seen is the value of column B, the first line shows the
constant (a) and the next row shows the independent variables constant. Based on the
general equation of multiple linear regression, viz.
 𝒀 = 𝜶 + 𝜷𝟏𝑿𝟏 + 𝜷𝟐𝑿𝟐 + 𝒆
Then, we can get the form of multiple linear equations as follows.
Y = 246,486 - 0, 038 X1 + 0, 256 X2 + e
Based on the regression model and table 5. above, the results of multiple linear
regression can be described as follows
1. The multiple linear equation above shows a constant value of 246,846 . This states
that if the performance-based budget and the clarity of the budget targets
are considered constant, the performance accountability of government agencies will
increase by 246,846 units.
2. Regression coefficient on the performance-based budget variable (X 1 ) has a
constant value of -0.038 , this means that if the performance-based variable increases
in one unit (1%), then, the performance accountability variable of government
agencies will increase by -0.038 or 38 % assuming other variables are considered
fixed.
3. The regression coefficient on the budget target clarity variable (X 2 ) has a constant
value of 0, 256, this means that if the budget target clarity variable increases by one
unit (1%), then the accountability variable performance of government agencies will
increase by 0, 256 or 256 % assuming other variables are considered fixed.

4.3.1 Test Statistics t

The t-test statistic is used to determine the presence or absence of the influence of
each independent variable tested at a significance level of 0.05. If the probability value is
less than 0.05 then H a is accepted and H 0 is rejected. Nam un, if the probability value a is
greater than 0.05 then H a is rejected and H 0 is accepted. T test results obtained are as
follows.
Table 5 Test Statistics T

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 246.486 42.360 5.819 .000

HCOST OF GOODS
-.038 .265 -.041 -.145 .885
SOLD (X1)

VolumePenjualan(X2) -.256 .230 -.312 -1.113 .272

a.Dependent Variable: Net Profit (Y)

Source : Secondary data processed 2019
Discussion
1. Effect of Cost of Production on Net Profit
From the analysis of the cost of production, v ariabel cost of production has a
regression coefficient that is seb esar -0, 145 by pro babilitas variables of 0, 885 more than
0.05. If significant levels of the less than 0.05, with such a hypothesis which means that H1 is
rejected, that is not a significant difference in the negative direction between the cost of
production on net income. The direction of the negative sign means that the higher the cost
of production will reduce net profit. These effects also have in common from the research of
Dwi Ear Yuliati (2017) who concluded that production costs had no significant effect on net
income.

2. Effect of Volume Sales Against Net Income

From the analysis , v ariabel volume penjulan has a regression coefficient that is
seb esar -1135 with a probability variable of 0.272 < 0.05. Thus the research
hypothesis H 2 accepted that the sales volume has a positive effect on net income where the
greater volume penjulan , it will tend to increase net income. The influence also has
similarities from Putu Rustami's (2014) study in which the sales volume has a significant
effect on net income.

CONCLUSION
5.1 Conclusions
Based on the results of research and discussion on the effect of Cost of Production
and Sales Volume on Net Profit, the researchers draw several conclusions as follows:
1. There is not influence significant negative direction between the cost of production of
the profit net in the subsectors of food and drink that is listed in the Stock Exchange
Indonesia in 2014- 2016 , where as the higher price of goods production will lower
the profit net . Bastian Bustami and Nurlela (2013:49) defines that the price of
goods production can be calculated through a set of cost of production which
consists of material raw immediately , personnel working directly , and the cost of
overhead factory plus inventory of products in the process of beginning and minus
supplies products in the end .
2. The volume of sales of influence positively sigifikan against profit net in
the subsectors of food and beverages are listed on the Stock Exchange Indonesia
in 2014- 2016, where increasingly large volumes of penjulan , it will tend to increase
the profit net . S ebaliknya if the volume of sales decreased , the profit of the
company was also involved declined . The volume of sales is a matter of the most
important which should be evaluated for the possibility of the company so as not to
experience losses .
5.2 Suggestions
Practical advice
Companies pay more attention to the amount of sales achieved so that the company's net
profit is maximized. By improving the quality of the products are produced and increase
the sale of the goods which are sold and reduce the expenditure burden of the sales that did
not happen decline in revenue yan generated

Academic advice
This research is expected to be able to present higher quality research results with input on
several things including:
1. The study further suggested to add the variables that affect on profit net of
companies .
2. Further research is expected to examine 5 years or more . The expansion of the
survey are is intended so that research results are more likely to be concluded in
a comprehensive manner .
3. The study further suggested to get the data in the form of interviews of respondents
research in order to obtain data that more qualified and could be out of the questions
questionnaire that may be too narrow or less describes the situation that actually.
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