HM-Ch02 Konsep Dasar Ak Manaj

8/10/2019 HM-Ch02 Konsep Dasar Ak Manaj

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2-1

Basic

ManagementAccounting

Concepts

CHAPTER


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2-2

1. Describe the cost assignment process.

2. Define tangible and intangible products and

explain why there are different product cost

definitions.

3. Prepare income statements for manufacturing

and service organizations.

4. Outline the differences between functional-

based and activity-based management

accounting systems.

Objectives

After studying this

chapter, you should

be able to:


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2-3

Exactly what ismeant by cost?

Cost is the cash or cash-equivalent value

sacrificed for goods and services that is

expected to bring a current or futurebenefit to the organization.

I see Its a dollar

measure of the

resources used toachieve a given

benefit.


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A cost objectis any item such as products,

customers, departments, projects, activities, and

so on, for which costs are measured and assigned.

Example: A bicycle is a cost object when you are

determining the cost to produce a bicycle.

An activity is a basic unit of work performed

within an organization.

Example: Setting up equipment, moving mater ials,

maintain ing equipment, designing products,

etc.


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Traceability is the ability to assign a cost to a

cost object in an economically feasible way by

means of a cause-and-effect relationship.

Direct costsare those costs that can be easilyand accurately traced to a cost object.

Example: I f a hospital is the cost object,

the cost of heating andcooling the hospital is

a direct cost.


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I ndirect costsare those costs that cannot beeasily and accurately traced to a cost object.

Example:The salary of a plant manager, where

departments within the plant are definedas the cost objects.


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Tracing is the actual assignment of costs to a costobject using an observable measure of the resourcesconsumed by the cost object. Tracing costs to cost

objects can occur in the following two ways:Direct tracingis the process of identifying and assigningcosts that are exclusively and physically associated with acost object to that cost object.

Dr iver tracingis the use of drivers to assign costs to costobjects. Drivers are observable causal factors thatmeasure a cost objects resource consumption.


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2-8

Cost Assignment Methods

Cost of Resources

Direct

Tracing

Driver

Tracing Allocation

Physical

Observation

Causal

Relationship

Assumed

Relationship

Cost Objects


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2-9I nter face of Services with

Management Accounting

1. Intangibility

2. Perishability

3. Inseparability

4. Heterogeneity

Services cannot be stored.

No patent protection.Cannot display or

communicate services.

Price difficult to set.

Derived Properties

Services benefits expire

quickly.

Services may be repeatedoften for one customer.

Customer directly

involved withproduction of service.

Centralized mass

production of services

difficult.

Wide variation in service

products possible.


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2-10I nter face of Services with

Management AccountingNo inventories.

Strong ethical code.Price difficult to set.

Demand for more accurate

cost assignments.

Impact on Management

Accounting

No inventories.

Need for standards and

consistent high quality.

Costs often accounted

for by customer type.Demand for measure-

ment and control of

quality to maintain

consistency.

Productivity and quality

measurement and

control must be

ongoing.Total quality manage-

ment critical.

1. Intangibility

2. Perishability

3. Inseparability

4. Heterogeneity


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2-12

Design

Produce

Market

Distribute

Service Develop


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2-13

Product Costing Definitions

Pricing Decisions

Product-Mix Decisions

Strategic ProfitabilityAnalysis

Strategic Design Decisions

Tactical Profitability

Analysis

External Financial

Reporting

Research andDevelopment

Production

Marketing

CustomerService

Value-Chain

Product Costs

Production

Marketing

CustomerService

Operating Product

Costs

Traditional Product

Costs

Production


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Direct mater ials are those materials that are directly

traceable to the goods or services being produced.

Steel in an automobileWood in furniture

Alcohol in cologne

Denim in jeans

Braces for correcting teeth


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Direct laboris the labor that is directly traceable to

the goods or services being produced.

Workers on an assembly

line at Chrysler

A chef in a restaurant

A surgical nurse attending

an open heart operation

Airline pilot


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Overheadare all other production costs.

Depreciation on building

and equipment

Maintenance

Supplies

Supervision

Power

Property taxes


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Noninventoriable (period) costs

are expensed in the period in

which they are incurred.

Salaries and commissions of

sales personnel (marketing)

Advertising (marketing)

Legal fees (administrative)

Printing the annual report

(administrative)


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Prime Cost :

Direct Materials Costs + Direct Labor Costs

Conversion Cost:

Direct Labor Costs + Overhead Costs


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2-19

ExternalFinancial

Statements


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2-20Manufacturing Organization

Income Statement

For the Year Ended December 31, 2004

Sales $2,800,000

Less cost of goods sold:

Beginning finished goods inventory $ 500,000

Add: Cost of goods manufactured 1,200,000Cost of goods available for sale $1,700,000

Less: Ending finished goods inventory 300,000 1,400,000

Gross margin $1,400,000

Less operating expenses:

Selling expenses $ 600,000

Administrative expenses 300,000 900,000

Income before taxes $ 500,000

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Direct materials:

Beginning inventory $200,000Add: Purchases 450,000Materials available $650,000Less: Ending inventory 50,000Direct materials used $ 600,000

Direct labor 350,000Manufacturing overhead:

Indirect labor $122,500Depreciation 177,500Rent 50,000

Utilities 37,500Property taxes 12,500Maintenance 50,000 450,000

Total manufacturing costs added $1,400,000

Statement of Cost of Goods Manufactured


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continued on next slide


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Total manufacturing costs added $1,400,000

Add: Beginning work in process 200,000Total manufacturing costs $1,600,000

Less: Ending work in process 400,000

Cost of goods manufactured $1,200,000

Work in process consists of all

partially completed units found inproduction at a given point in time.


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2-23Service Organization

Income Statement


Sales $300,000Less expenses:

Cost of services sold:

Beginning work in process $ 5,000

Service costs added:

Direct materials $ 40,000Direct labor 80,000

Overhead 100,000 220,000

Total $225,000

Less: Ending work in process 10,000 215,000

Gross margin $ 85,000

Less operating expenses:

Selling expenses $ 8,000

Administrative expenses 22,000 30,000

Income before income taxes $ 55,000

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2-24Functional-Based

Management Model

Efficiency

Analysis

Performance

Analysis

Operational View

Resources

Functions

Products

Cost View


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2-25Activity-Based

Management Model

Resources

Activities

Products and

Customers

Cost View

Driver

Analysis

Performance

Analysis

Process View

Why? What? How Well?


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1. Unit-based drivers

2. Allocation-intensive3. Narrow and rigid product

costing4. Focus on managing cost

5. Sparse activity information

6. Maximization of individualunit performance

7. Use of financial measures ofperformance

1. Unit- and nonunit-baseddrivers

2. Tracing intensive3. Broad, flexible product

costing

4. Focus on managingactivities

5. Detailed activityinformation

6. Systematic performancemaximization7. Use of both financial and

nonfinancial measures ofperformance

Functional-Based Activity-Based


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The End

Chapter Two

Documents

HM-Ch02 Konsep Dasar Ak Manaj