The purpose of this research is to analyze the effects of production and operational costs, capital structure and company growth on profitability. The method used in this research is quantitative method, data collection is performed by distributing questionnaires among employees of packaging industry. The population in this study are industrial employees in Jabodetabek whose numbers have not been identified with certainty. The questionnaire is distributed electronically using a simple random sampling technique. The results of the questionnaire returned are 180 respondents. Based on the results of data analysis, it is concluded that Capital structure has a significant effect on profitability. An increase in the capital structure variable will be followed by an increase in profitability and a decrease in variable capital structure will be followed by a decrease in profitability. Company growth has no significant effect on profitability. An increase in the company growth variable will not be followed by an increase in profitability and a decrease in variable company growth will not be followed by a decrease in profitability. Operational cost has a significant effect on profitability. An increase in the operational cost variable will be followed by an increase in profitability and a decrease in variable operational cost will be followed by a decrease in profitability. Production cost has no significant effect on profitability. An increase in the production cost variable will not be followed by an increase in profitability and a decrease in variable production cost will not be followed by a decrease in profitability.

The current study proposes a new method to account for production spoilage in process costing system, not previously discussed in cost accounting literature and/or textbooks. It differs from traditional methods discussed in cost accounting textbooks in determining normal spoilage units and assignment of production cost. The study used data from a real factory that makes men’s suits for January 2018 to illustrate and explain the proposed method and its impact on cost reduction. The obtained results prove the study proposition that traditional methods to account for production spoilage overstate normal spoilage cost, and hides or understate actual abnormal spoilage. The proposed method reduced normal spoilage cost by 27%, compared to traditional methods. Thus, the significant reduction in normal spoilage resulted also in a cost reduction of good units manufactured. In addition, the abnormal spoilage cost under the proposed method increased by 35% thus, it would be noticeable by management to focus on, control and eliminate. The study recommends that manufacturing firms adopt the proposed method to account for production spoilage as it is more accurate and helps management focus on production spoilage and take corrective actions to control and eliminate.

In connection with the global financial and economic crisis, the leading countries have made adjustments to the economic strategies and policies to stabilize the post-crisis economy. The goal of transnationalization is, on the one hand, to reduce quickly the technological gap between domestic producers and their Western competitors, and on the other hand, to win more dynamic demand at lower costs. Ownership structure and market positioning have become two factors that determine the strategic motivation of Transnational corporations (TNCs) and the ways of their expansion. The aim of the study is to analytically generalize the globalization trends of TNCs in the field of production, taking into account industry definitions and point determination of factors influencing the effectiveness of its adaptation in industry. The profiles of adaptation of transnationalization in the sphere of production of Germany, France and the Netherlands were singled out in separate analytical sets, which allowed to reveal heterogeneity of economic practices and branch changes in the sphere of production and to determine the degree of influence of array of variables (factors): Production value and Gross operating surplus profitability of multinational companies, in the sectoral context (domestic production, ISIC Rev 4, 21 industry), as a “basket” of reserve instruments to increase the profitability of production in TNCs.