<![CDATA[The home industry sector in North Sulawesi plays a strategic role in supporting the regional economy. However, most business operators still face significant challenges regarding financial management—specifically, an inability to accurately calculate and compile cost of production reports. This study aims to analyze and develop a cost of production report design based on the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM), and to evaluate its impact on optimizing selling prices and increasing business profits. A qualitative approach utilizing an exploratory-descriptive method was employed. Data were gathered through in-depth interviews, observations, and documentation involving a sample of home industry operators in North Sulawesi. The findings reveal that the majority of operators still rely on traditional record-keeping methods that overlook critical cost components, such as factory overhead and asset depreciation. This leads to cost of production figures that are either understated (undercosting) or overstated (overcosting), thereby eroding potential profit margins. The SAK EMKM-compliant cost of production report design developed in this study offers a format that is simple, relevant, and easy for business operators to implement without compromising established accounting principles. By adopting this standardized reporting design, home industry operators can achieve cost efficiencies, monitor production expenses in real-time, and set selling prices with greater precision. Consequently, the resulting transparency and accuracy of financial information are shown to sustainably boost business profits and facilitate broader access to formal financing.]]>
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