Analysis of Packaging Rendang Production Costs In the city of Padang

Abstract

This study aims to analyze what form the production cost function of packaged rendang in Padang City. The sample in this study were all members of the population as many as 37 packaged rendang entrepreneurs. The data analysis method was performed using the Constant Elasticity Cost Function (CES) Model and translog. The data analysis method was carried out by using the CES Model and the Translog Model. The results of the study found that the appropriate cost function model for this packaged rendang is to use the Constant Elasticity Cost Function (CES) cost function. The results of the study found that production results, wages and capital costs had a positive and significant effect on production costs. The results of this study are expected to provide input for policy makers, especially the West Sumatra Regional Government, especially the Padang City Government in preparing the gift industry development program in Padang City.