01 modul ke: akuntansi biayasim+...modul ke: fakultas program studi akuntansi biaya management, the...
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Modul ke:
Fakultas
Program Studi
Akuntansi Biaya Management, the Controller, and Cost Accounting. Cost Concept and The Cost Accounting Information System. Suryadharma Sim, SE, M. Ak
01 Ekonomi dan
Bisnis
S1 Manajemen
Management, the Controller, and Cost Accounting
Management
Management is composed of three groups: (1) operating
management, consisting of supervisors; (2) middle management,
represented by department heads, division managers, and
branch managers; and (3) executive management, consisting of
the president, executive vice-presidents, and executives in
charge of marketing, purchasing, engineering, manufacturing,
finance, and accounting.
Management, the Controller, and Cost Accounting
1. Planning, the construction of a detailed operating program is the process of sensing
external opportunities and threats, determining desirable objectives, and employing
resources to accomplish these objectives.
2. Organizing is the establishment of the framework within which activities are to be
performed.
3. Control is management’s systematic effort to achieve objectives.
4. Authority, Responsibility, and Accountability
• Authority is the power to direct others to perform or not perform activities.
Authority is the key to the managerial job and the basis for responsibility.
• Responsibility, or obligation, is closely related to authority. It originates
principally in the superior-subordinate relationship in that the superior has the
authority to require specific work from others. If subordinates accept the
obligation to perform, they create their own responsibility. The superior still is
ultimately responsible for subordinate’s performance.
• Accountability is reporting results to higher authority.
Management, the Controller, and Cost Accounting
The Organization Chart
An organization chart shows an entity’s principal management
positions, helps to define authority, responsibility, and accountability,
and is essential in developing a cost accounting system capable of
reporting the responsibilities of individuals. The coordinated
development of a company’s organization with the cost and budgetary
system leads to an approach to accounting and reporting called
responsibility accounting. Most organization charts are based on the
line-staff concept.
Management, the Controller, and Cost Accounting
The Controller’s Participation in Planning and Control
The controller is the executive manager responsible for the accounting function. The
controller coordinates management’s participation in planning and controlling the
attainment of objectives, in determining the effectiveness of policies, and in creating
organizational structures and processes. The controller also is responsible for observing
methods of planning and control throughout the enterprise and for proposing improvement
in them. Using the accounting system and other systems, the controller provides
information for planning a company’s future and for controlling its activities. This
information goes far beyond the basic financial statements. Investors, government
agencies, and other external parties also receive information by which management’s
effectiveness may be judged. This information is usually communicated to external users
by means of quarterly and annual reports that include financial statements but lack the
depth of explanatory detail available to internal decision makers.
Management, the Controller, and Cost Accounting
The comparison of financial accounting, management accounting
and cost accounting
• Financial accounting focuses on reporting to external parties such as investors,
government agencies, banks, and suppliers. It measures and records business
transactions and provides financial statement that are based on generally accepted
accounting principles (GAAP). The most important way that financial accounting
information affects managers’ decisions and actions is through compensation,
which is often, in part, based on numbers in financial statements.
• Management accounting measures analyzes, and reports financial and
nonfinancial information that helps managers make decisions to fulfill the goals of
an organization. Managers use management accounting information to develop,
communicate, and implement strategy. They also use management accounting
information to coordinate product design, production, and marketing decisions and
to evaluate performance.
Management, the Controller, and Cost Accounting
• Cost Accounting provides information for management accounting and
financial accounting. Cost accounting measures, analyzes, and reports
financial and nonfinancial information relating to the costs of acquiring or
using resources in an organization. For example, calculating the cost of a
product is a cost accounting function that answers the financial
accounting’s inventory-valuation needs and management accountings’
decision-making needs (such as deciding how to price products and
choosing which products to promote).
Management, the Controller, and Cost Accounting
The Professional Ethics
Accountants have special obligations regarding ethics, given that they are responsible
for the integrity of the financial information provided to internal and external parties.
The Sarbanes-Oxley legislation in the United States, passed in 2002 in response to a
series of corporate scandals, focuses on improving internal control, corporate
governance, monitoring of managers, and disclosure practices of public corporations.
Institute of Management Accountants (IMA) Statement of ethical professional practice:
Principles
Standards
Competence
Confidentiality
Integrity
Credibility
Management, the Controller, and Cost Accounting
Summary
Management can be viewed as encompassing the processes of
planning, organizing, and control. The management team includes the
controller, who coordinates planning and control for the firm. The cost
department coordinates with other departments and plays a central
role in budgeting, cost control, pricing, reporting, and choosing among
alternatives.
Both professional certification and a code of ethics now exist for
management accountants. These and other external constraints exert
significant influence on cost accounting.
Cost Concept and The Cost Accounting Information System
The Cost Concept
Cost concepts have developed according to the needs of accountants,
economists, and engineers. Accountants have defined cost as “an exchange
price, a forgoing, a sacrifice made to secure benefit. In financial accounting, the
forgoing or sacrifice at date of acquisition is represented by a current or future
diminution in cash or other assets.”
Frequently the term cost is used synonymously with expense. However, an
expense may be defined as a measured outflow of goods or services, which is
matched with revenue to determine income, or as:
… the decrease in net assets as a result of the use of economic services in the
creation of revenues or of the imposition of taxes by governmental units. Expense
is measured by the amount of the decrease in assets or the increase in liabilities
related.
Cost Concept and The Cost Accounting Information System
The Cost Accounting Information System
Systematic, comparative cost information and analytical cost and profit data
are needed so that managers can set profit goals, establish departmental
targets for middle and operating management, evaluate the effectiveness of
plans, pinpoint specific successes or failures, identify and select strategies,
and decide on adjustments and improvements in the organization. An
integrated and coordinated information system provides the information
needed by managers and communicates it promptly in a form understandable
to the user. Opportunities can be missed because of poor communication. The
cost accounting information system must reflect the division of authority so that
individual managers can be held accountable.
Cost Concept and The Cost Accounting Information System
Classification of Cost Cost classifications are essential for meaningful summarization of cost data. The most
commonly used classifications are based on the relationship of costs to the following:
a. The product
1. Manufacturing Costs
- Direct materials
- Direct labor
- Factory overhead
- Indirect materials
- Indirect labor
2. Commercial Expenses
- Marketing expenses
- Administrative expenses
b. The volume of production
1. Variable Costs
2. Fixed Costs
3. Semi variable Costs
Cost Concept and The Cost Accounting Information System
c. The manufacturing departments, processes, cost centers, or other subdivisions
1. Producing and Service Departments
2. Common Costs and Joint Costs
d. The accounting period
1. Capital expenditures
2. Revenue expenditures
e. A decision, action, or evaluation
1. Differential cost
2. Opportunity cost
3. Sunk cost
Cost Concept and The Cost Accounting Information System
Summary
The concepts of cost object and cost traceability are fundamental to the study
of cost accounting. The different degrees of traceability and the wide variety of
important cost objects create a large number of categories into which costs are
classified.
The chart of account is the skeleton of the cost accounting information system.
The system’s output includes much of the information managers use in
planning and control. Outside the basic accounting system, but still important in
managing, are the nonfinancial performance measures now receiving
increased attention.
Terima Kasih Suryadharma Sim, SE, M. Ak