Production Cost Management Practices of Local Bakeries in Pagadian City

Arbel B. Bibas, Sandara C. Dayap, Me Ann C. Quirante and Ace Virgel T. Batingal

Journal of Accounting and Finance in Emerging Economies, 2026, vol. 12, issue 1, 85-102

Abstract: Purpose: For local bakeries to be sustainable and competitive in highly challenging market conditions, it is necessary to manage production costs effectively by carefully planning daily operations, consistently monitoring to determine which resources are needed and which are not, and controlling actual spending against the planned budget. These help them mitigate the impact of rising prices of ingredients that affect operational activity.Design/Methodology/Approach: This study used a qualitative case study design following Merriam’s Case Study Framework (2016) and guided by the Theory of Constraints by Goldratt (1990). The researchers used purposive sampling to select 10 independent bakeries that had been in business for at least 5 years, were not franchises, and had been approved by the Department of Trade and Industry. The data were collected through semi-structured interviews, direct observations, audio recording, data mining, and triangulation.Findings: The results indicated that bakery owners effectively managed their production costs by planning, organizing inventory, and using cost-control methods such as sales and expense monitoring, manual cost tracking, strategic adjustments to product and ingredient, and allocation of cost allowances.Implications/Originality/Value: This research provides a credible basis for how local bakeries in Pagadian City manage their production costs. It shows how these practices help maintain high product quality, generate revenue, and keep the business going even when money and operations are tight.

Keywords: Production Cost Management; Local Bakeries; Local Bakery Owners; Cost Control Strategies; Business Sustainability (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:12:y:2026:i:1:p:85-102

DOI: 10.26710/jafee.v12i1.3683

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