Smart Business Decisions with Differential Costs: A Case Study of Fried Rice and Tempeh MSMEs in Special Orders

Sasha Salsabilah (Universitas Sriwijaya)
Talita Adelia Zahira (Universitas Sriwijaya)
Dakeysha Yaspica (Universitas Sriwijaya)
Emylia Yuniarti (Universitas Sriwijaya)

Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 5 (2025): May 2025

This study aims to analyze the application of differential cost analysis in managerial decision-making processes, particularly in evaluating special orders for Micro, Small, and Medium Enterprises (MSMEs). Using a comparative approach to two MSME case studies Nasi Goreng Kembar Naknik and Tempe Pak Kasmudi this research reveals how differences in cost structures and production capacities influence business decisions. The results show that differential cost analysis provides a strong basis for MSMEs to determine the feasibility of special orders by considering relevant additional revenues and costs. Both case studies demonstrate that special orders can increase profitability without requiring additional production capacity, provided decisions are based on positive contribution margins. This study emphasizes the importance of understanding relevant costs to support the efficiency, sustainability, and growth of MSMEs.