Costing Practices of Small-Scale Kakanin Businesses in Pagadian City

Abstract

Small-scale kakanin businesses play a vital role in local food entrepreneurship yet often face challenges in managing fluctuating ingredient prices and limited financial literacy. This study explored the costing management practices of eight kakanin vendors in Pagadian City using a qualitative case study approach. Guided by Transaction Cost Theory, data were collected through semi-structured interviews, observations, and business record reviews. Results revealed that direct costs were tracked through itemized expenses, estimation, manual recording, and occasional digital tools, while indirect costs were allocated using simple methods like percentage mark-ups. Pricing decisions relied on cost breakdowns, market trends, and competitor comparisons. Vendors minimized expenses through portion control, bulk buying, and recipe adjustments to address inflation and raw material shortages. These findings indicate that despite informal costing systems, vendors' practices align with costminimization and uncertainty-reduction principles. The study suggests that improving financial literacy and introducing basic digital tools can enhance cost accuracy and business sustainability.