Abstract :
This study aims to determine the effect of operational costs on profitability in manufacturing companies listed on the Indonesia stock exchange. This study uses quantitative methods and the source data used is secondary data in the form of financial statements. The population in this study were 20 manufacturing companies engaged in industry and chemistry on the Indonesia Stock Exchange for the 2014-2018 period. The sampling technique used purposive sampling technique with a sampling method based on certain criteria and obtained 6 samples. Then processed using SPSS Version 22 The data analysis method used is simple linear regression. The results of the partial test (t) show that operational costs have a significant effect on profitability.
Keywords: Operational Costs, Profitability.