akuntansi manajemen absoprtion costing

7/24/2019 Akuntansi Manajemen Absoprtion Costing

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Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

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nventory Costing Choices: Overview

1. Absorption Costing product costs are capitalized;period costs are expensed

2. Variable Costing variable product and period costsare capitalized; fixed product and period costs areexpensed

3. Throughput Costing only Direct Materials arecapitalized; all other costs are expensed

Costing ComparisonVariable costing is a method of inventory costing in which

nly variable manufacturing costs are included asnventoriable costs

Absorption costing is a method of inventory costing inwhich all variable manufacturing costs and all fixedmanufacturing costs are included as inventoriable costs

Differences in IncomeOperating Income will differ between Absorption and

Variable Costing. The amount of the difference representshe amount of Fixed Product Costs capitalized as Inventorynder Absorption costing, and expensed as a period costsnder Variable Costing

Comparative Income Statements

Comparative Income Effects

VariableCosting

AbsorptionCosting

Are fixed product costsinventoried?

No Yes

Is there a production-volume-variance?

No Yes

Are classifications betweenvariable & fixed costsroutinely made?

Yes Infrequen

CHAPTER 9INVENTORY COSTING AND CAPACITY ANALYSIS

AKUNTANSI MANAJEMEN


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Comparative Income Effects

Comparison of Alternative Inventory Costing SystemsVariable Direct Manufacturing Cost

Variable Indirect Manufacturing Cost

ixed Direct Manufacturing Cost

Fixed Indirect Manufacturing Cost

Performance Issues and Absorption CostingManagers may seek to manipulate income by producing toomany units. Production beyond demand will increase theamount of inventory on hand. This will result in more fixedcosts being capitalized as inventory.That will leave a smalleramount of fixed costs to be expensed during theperiod. Profit increases, and potentially so does a mangersbonus

Inventories and Costing MethodsOne way to prevent the unnecessary buildup of inventoryfor bonus purposes is to base managers bonuses on profitcalculated using Variable Costing.

Drawback: complicated system of producing two inventoryfigures ,one for external reporting and the other for bonuscalculations

Other Manipulation Schemes Beyond SimpleOverproductionDeciding to manufacture products the absorb the highestamount of fixed costs, regardless of demand (cherrypicking) . Accepting an order to increase production, eventhough another plant in the same firm is better suited tohandle that order, Deferring maintenance.Management Countermeasures for Fixed CostManipulation Schemes

1. Careful budgeting and inventory planning2. Incorporate an internal carrying charge for

inventory3. Change (lengthen) the period used to evaluate

performance4. Include nonfinancial as well as financial variables i

the measures to evaluate performance

Extreme Variable Costing:Throughput CostingThroughput costing (super-variable costing) is a method of

inventory costing in which onlydirect material costs areincluded as inventory costs. All other product costs aretreated as operating expenses


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Throughput Costing Illustrated

Costing Systems Compared

EXERCISES

1.) Lohis Company manufactures metal cans used in food-processing industry. As Lohis s senior financial analyst, youare asked to recommend a method of inventory costing.The following data are for year 2009, 2010, and 2011 :

Year 2009 2010 2011Unit Sold 6.000 10.000 12.000UnitProduced

8.000 10.000 10.000

Sales Price Rp90.000 Rp90.000 Rp90.000Cost of Production

Direct Material Rp 12.000 per unitDirect Labor Rp 8.000 per unitV. FOH Rp 6.000 per unitF. FOH Rp200.000.000

Selling General and Administrative ExpensesV.SGA Rp 10.000 per unitF.SGA Rp80.000.000

Required :Prepare Operating Income Statements using Absorptioncosting, Variable costing !

Sales Price 90,0DM/unit 12,00DL/unit 8,00V.FOH/unit 6,00F.FOH 200,000,0F.FOH/unit for 2009 25,00F.FOH/unit for 2010 and 2011 20,00Manufacturing Cost/unit for 2009(Absorption Costing) 51,00Manufacturing Cost/unit for 2010 and 2011(Absorption Costing) 46,0


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Manufacturing Cost/unit for 2009-2011Variable Costing) 26,000

V.SGA/unit 10,000.SGA 80,000,000

5000 = 200.000.000 / 80000000 = 200.000.000 / 100001000 = 12000 + 6000 + 250006000 = 12000 + 8000 + 6000 + 20000

6000 = 12000 + 8000 = 6000ncome Statement ( Asorption costing)

Absorption Costing2009

Revenue 540,000,000COGS :

Beginning Inventory -

DM 96,000,000

DL 64,000,000

V.FOH 48,000,000

Allocated F.FOH 200,000,000Cost o Goo sAvailable for Sale 408,000,000

Ending Inventory 102,000,000

COGS : 306,000,000

Gross Margin 234,000,000

Fixed SGA 80,000,000

Variable SGA 60,000,000

Operating Income 94,000,000ncome Statement (Variabe Costing)

Variable Costing

Revenue2009

540,000,000COGS :

Beginning Inventory -

DM 96,000,000

DL 64,000,000

V.FOH 48,000,000Cost o Goo sAvailable for Sale 208,000,000

Ending Inventory 52,000,000

Variable COGS 156,000,000

Variable SGA 60,000,000

Contribution Margin 324,000,000

Fixed ManufacturingCost 200,000,000

Fixed SGA 80,000,000

2.) Assume Stassen Company on January 1, 2012, decidesto contract with another company to preassemble a largepercentage of the components of its telescopes. Therevised manufacturing cost structure during the 2012 2014 period is as follows:Problem for Self-StudyVariable manufacturing cost per unit producedDirect materials $ 250Direct manufacturing labor 20

Manufacturing overhead . 5Total variable manufacturing cost per unit produced 275Fixed manufacturing costs $480,000

Under the revised cost structure, a larger percentage ofStassen s manufacturing costs are variable with respect tounits produced. The denominator level of production usedto calculate budgeted fixed manufacturing cost per unit in2012, 2013, and 2014 is 8,000 units. Summary informationpertaining to absorption-costing operating income andvariable-costing operating income with this revised coststructure is as follows:

2012 2013 2014Absorp-costing(Op.Inc) $1,500,000 $1,560,000$2,340,000Var-costing (Op.Inc) 1,380,000 1,650,0002,190,000Difference $120,000 $(90,000) $150,000

1. Compute the budgeted fixed manufacturing cost perunit in 2012, 2013, and 2014. Required

2. Explain the difference between absorption-costingoperating income and variablecosting, operating income in2012, 2013, and 2014, focusing on fixed manufacturing,costs in beginning and ending inventory.

3. Why are these differences smaller than the differencesin Exhibit 9-2?

4. Assume the same preceding information, except that for2012, the master-budget capacity utilization is 10,000 unitsinstead of 8,000. How would Stassens absorptioncostingincome for 2012 differ from the $1,500,000 shownpreviously? Show your computations.

Solution1.

2. Absorption costing operating income Variable costingoperaing income = Fixed manufacturing cost in endinginventory under absorption costing Fixed manufacturingcost in beginning inventory under absorption costing

20121500000 1380000 = (60 per unit x 2000 per unit) (60

per unit x 0 unit)120000 = 1200000


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per unit x 2000 unit)90000 = -90000


per unit x 500 unit)

. Subcontracting a large part of manufacturing has greatly

educed the magnitude of fixed manufacturing costs. Thiseduction, in turn, means differences between absorptionosting and variable costing are much smaller

. Given the higher master-budget capacity utilization levelf 10,000 units, the budgeted fixed manufacturing cost rateor 2012 is now as follows:

The manufacturing cost per unit is $323 ($275 + $48). So,he production-volume variance for 2012 is

10,000 units - 8,000 units) x $48 per unit = $96,000 U

The absorption-costing income statement for 2012 is asollows:

The higher denominator level used to calculate theudgeted fixed manufacturing cost per unit means thatewer fixed manufacturing costs are inventoried ($48 pernit 2,000 units = $96,000) than when the master-budget

apacity utilization was 8,000 units ($60 per unit 2,000 units $120,000). This difference of $24,000 ($120,000 96,000) results in operating income being lower by24,000 relative to the prior calculated income level of1,500,000.

U = Unfavorable (exceed the expectation)* F = Favorable ( under the expectation)

We can abbreviate whether a variance is favorable ornfavorable by writing the letter "F" or "U" next to theollar amount of a variance, accordingly. Fornstance,thereis $1,000 value has a negative sign, which in

this case also indicates a favorable variance. in this case wehave the materials price variance of $1,000 F.

A Five-Step Decision Making Process in Planning & Contro

Revisited1.Identify the problem and uncertainties2.Obtain information3.Make predictions about the future4.Make decisions by choosing between alternatives, usingCost-Volume-Profit (CVP) analysis5.Implement the decision, evaluate performance, and learn

Foundational Assumptions in CVPChang es in production/sales volume are the sole cause forcost and revenue changesTotal costs consist of fixed costs and variable costs Revenue and costs behave and can be graphed as a linear

function (a straight line)Selling price, variable cost per unit and fixed costs are known and constantIn many cases only a single product will be analyzed. Ifmultiple products are studied, their relative salesproportions are known and constantThe time value of money (interest) is ignored

Basic Formulae

CVP: Contribution MarginManipulation of the basic equations yields an extremelyimportant and powerful tool extensively used in CostAccounting: the Contribution Margin

Contribution Margin equals sales less variable costs

CM = S VCContribution Margin per Unit equals unit selling price lessvariable cost per unit

CMu= SP VCu

Contribution Margin also equals contribution margin perunit multiplied by the number of units sold (Q)

CM = CMux Q

Contribution Margin Ratio (percentage) equals contributionmargin per unit divided by Selling Price

CMR = CMuSP

CHAPTER 3

COST-VOLUME PROFIT ANALYSIS


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nterpretation: how many cents out of every sales dollar areepresented by Contribution Margin

Basic Formula DerivationsThe Basic Formula may be further rearranged and

ecomposed as follows: Sales VC FC = OI(SP x Q) (VCux Q) FC = OI

Q (SP VCu) FC = OIQ (CMu) FC = OI

OI = Operating Income

Remember this last equation, it will be used again in amoment

Breakeven PointRecall the last equation :

Q (CMu) FC = OI

A simple manipulation of this formula, and setting OI toero will result in the Breakeven Point (quantity):

BEQ = FC Cmu

At this point, a firm has no profit or loss at the given salesevel ,If per-unit values are not available, the Breakevenoint may be restated in its alternate format:

BE Sales = FC CMRBreakeven Point, extended: Profit PlanningWith a simple adjustment, the Breakeven Point formula cane modified to become a Profit Planning tool. Profit is noweinstated to the BE formula, changing it to a simple salesolume equation

Q = (FC + OI)CM

CVP: Graphically

rofit Planning, Illustrated

CVP and Income TaxesFrom time to time it is necessary to move back and forthbetween pre-tax profit (OI) and after-tax profit (NI),depending on the facts presented. After-tax profit can becalculated by:

OI x (1-Tax Rate) = NI

NI can substitute into the profit planning equation throughthis form:

OI = . NI .(1-Tax Rate)

Sensitivity AnalysisCVP Provides structure to answer a variety of whatscenarios. What happens to profit if :

Selling price changes Volume changes Cost structure changes

Variable cost per unit changes Fixed cost changes

Margin of SafetyOne indicator of risk, the Margin of Safety (MOS) measuresthe distance between budgeted sales and breakeven sales:

MOS = Budgeted Sales BE Sales

The MOS Ratio removes the firms size from the output, andexpresses itself in the form of a percentage:

MOS Ratio = MOS Budgeted Sales

Operating LeverageOperating Leverage (OL) is the effect that fixed costs haveon changes in operating income as changes occur in unitssold, expressed as changes in contribution margin

OL = Contribution MarginOperating Income

Notice these two items are identical, except for fixed costs


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Effects of Sales-Mix on CVPThe formulae presented to this point have assumed a single

roduct is produced and sold. A more realistic scenarionvolves multiple products sold, in different volumes, withifferent costs. The same formulae are used, but insteadse average contribution margins for bundles of products.

Multiple Cost DriversVariable costs may arise from multiple cost drivers orctivities. A separate variable cost needs to be calculated

or each driver. Examples include: Customer or patient count Passenger miles Patient days Student credit-hours

Alternative Income Statement Formats

EXERCISES

Wembley Travel Agency specializes in flights between Los

Angeles and London. It books passengers on UnitedAirlines at $900 per round-trip ticket. Until last month,United paid Wembley a commission of 10% of the ticket

rice paid by each passenger. This commission wasWembley s only source of revenues. Wembley s fixed costsre $14,000 per month (for salaries, rent, and so on), andts variable costs are $20 per ticket purchased for aassenger. This $20 includes a $15 per ticket delivery feeaid to Federal Express. (To keep the analysis simple, wessume each round-trip ticket purchased is delivered in aeparate package. Thus, the $15 delivery fee applies toach ticket.)

United Airlines has just announced a revised paymentschedule for all travel agents. It will now pay travel agentsa 10% commission per ticket up to a maximum of $50. Anyticket costing more than $500 generates only a $50commission, regardless of the ticket price.

1. Under the old 10% commission structure, how manyround-trip tickets must Wembley sell each month(a) to break even(b) to earn an operating income of $7,000?

2. How does United s revised payment schedule affectyour answers to (a) and (b) in requirement 1?

Solution1. Wembley receives a 10% commission on each ticket: 10%$900 $90. Thus,a.

b. When target operating income $7,000 per month,

2. Under the new system, Wembley would receive only $50on the $900 ticket. Thus,a.

b.

.

The $50 cap on the commission paid per ticket causes thebreakeven point to more than double (from 200 to 467tickets) and the tickets required to be sold to earn $7,000per month to also more than double (from 300 to 700tickets). As would be expected, travel agents reacted verynegatively to the United Airlines announcement to changecommission payments. Unfortunately for travel agents,other airlines also changed their commission structure insimilar ways.

akuntansi manajemen absoprtion costing

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