AKUNTANSI MANAJEMEN

PERTEMUAN 2 (Sesi 3-4): ABC-ABM

Achmad Zaky,MSA.,Ak.,SAS.,CMA.,CA

*Slide ni bersumber dari PPT Hansen-Mowen

PERTANYAAN PENTING

• Why is accurate cost information about customers &

suppliers important?

• Will accurate cost information guarantee that a firm is

competitive?

• How can we determine whether activities are of value

to a firm?

Unit cost is the total cost associated with the units produced divided by the number of units produced.

Inventory valuation

Income determination

Providing input to a

variety of decisions

such as pricing, make or

buy, and accept or reject

special orders

Unit cost is used for--

Product cost is often defined as the sum of direct materials, direct labor, and manufacturing overhead. This definition is required for external financial reporting.

Cost measurement consists of determining the dollar amounts of direct materials, direct labor, and overhead used in production.

The process of associating the costs, once measured, with the units produced is called cost assignment.

Two possible measurement systems are actual costing and normal costing.

Measurement Systems

Actual costing assigns the actual costs of direct materials, direct labor, and overhead to products.

Normal costing assigns the actual costs of direct materials and direct labor to products; however, overhead cots are assigned to products using predetermined rates.

Measurement Systems

A predetermined overhead rate is a rate based on estimated data.

Budgeted (estimated) cost

Estimated activity usage

Examples of Unit-Level Drivers

Units produced

Direct labor hours

Direct labor dollars

Machine-hours

Direct material dollars

Units

(of

driver)

Time

Theoretical

Practical

Normal

Expected actual

Functional-Based Costing: Plantwide Rate

Overhead Costs

Assign Costs

Plantwide Pool

Assign Costs

Products

Direct Tracing

Stage One: Pool Formation

Unit-Level Driver

Stage Two: Costs Assigned

Belring, Inc.

Belring, Inc. produces two telephones: a cordless and a regular model. The company has the following actual and budgeted data:

.

Budgeted overhead $360,000

Expected activity (DLH) 100,000

Actual activity (DLH) 100,000

Actual overhead $380,000

Budgeted overhead $252,000 $108,000

Departmental Data

Belring, Inc.Fabrication Assembly

Expected and actual usage (dlh):

Cordless 7,000 3,000

Regular 13,000 77,000

20,000 80,000

Expected and actual usage (mh.):

Cordless 4,000 1,000

Regular 36,000 9,000

40,000 10,000

Units produced per year 10,000 100,000 110,000

Prime costs $78,000 $738,000 $816,000

Direct labor hours 10,000 90,000 100,000

Machine hours 5,000 45,000 50,000

Production runs 20 10 30

Number of moves 60 30 90

Belring, Inc.

Activity Usage Measures

Product-Costing Data

Cordless Regular Total

Activity Activity Cost

Belring, Inc.

Setups $120,000

Material handling 60,000

Machining 100,000

Testing 80,000

Total $360,000

Overhead Activities

Product-Costing Data

Predetermined Overhead Rate =

Belring, Inc.

Budgeted (estimated) cost

Estimated activity usage

Predetermined Overhead Rate =

$360,000

100,000 DLH

Predetermined Overhead Rate = $3.60 per DLH

The total overhead assigned to actual production is called applied overhead.

Applied

overhead=

Overhead rate

x

Actual activity

output

Belring, Inc.Applied

overhead= Overhead rate x Actual activity output

= $3.60 x 100,000 DLH

= $360,000

Cordless Regular

Prime costs $ 78,000 $ 738,000

Overhead costs:

$3.60 x 10,000 36,000 ---

$3.60 x 90,000 --- 324,000

Total manufacturing costs $114,000 $1,062,000

Units produced 10,000 100,000

Unit cost $ 11.40 $ 10.62

Belring, Inc.

Per-Unit Cost

Overhead Costs

Assign Costs

Assign Costs Assign Costs

Products Products

Stage One: Pool

Formation

Unit-Level Drivers

Stage Two: Costs

Assigned

Functional-Based Costing Department Rate

Department A Pool Department B Pool

Allocation

Direct TracingDriver Tracing

Budgeted overhead $252,000 $108,000

Departmental Data

Belring, Inc.Fabrication Assembly

Expected and actual usage (dlh):

Cordless 7,000 3,000

Regular 13,000 77,000

20,000 80,000

Expected and actual usage (mh.):

Cordless 4,000 1,000

Regular 36,000 9,000

40,000 10,000

Belring, Inc.Applied

overhead= ($6.30 x actual mh) + ($1.35 x actual dlh)

= ($6.30 x 40,000) + ($1.35 x 80,000)

= $360,000

= $252,000 + $108,000

Belring, Inc.

Per-Unit Cost: Departmental Rates

Cordless Regular Prime costs $ 78,000 $ 738,000

Overhead costs:($6.30 x 4,000) + ($1.35 x 3,000) 29,250 ---

($6.30 x 36,000) + (1.35 x 77,000) --- 330,750

Total manufacturing costs $107,250 $1,068,750

Units produced 10,000 100,000

Unit cost $ 10.73 $ 10.69

ABC: Two-Stage Assignment

Cost of Resources

Assign Costs

Activities

Assign Costs

Products

Driver

Tracing

Driver

Tracing

Driver

Tracing

Unit-level activities are those that are performed each time a unit is produced.

Examples: Power and machine hours are used each time a unit is produced. Direct materials and direct labor activities are also unit-level activities, even though they are not overhead costs.

Classification of Activities

Batch-level activities are those that are performed each time a batch of products is produced.

Examples: Setups, inspections, production scheduling, and material handling.

Classification of Activities

Product-level (sustaining) activities are those that are performed as needed to support the various products produced by a company. These activities consume inputs that develop products or allow products to be produced and sold.

Examples: Engineering changes, process engineering, and expediting.

Classification of Activities

Facility-level activities are those that sustain a factory's general manufacturing processes.

Examples: Plant management, landscaping,

maintenance, security, propertytaxes, and plant depreciation.

Classification of Activities

DriverFilter

DriverFilter

DriverFilter

Unit Level Batch Level Product Level Facility Level

A 1 A A A A2 3 4 5

Set 1 Set 2 Set 3 Set 4 Set 5 Set 6 Set 7

Activity Level Filter

Non-unit activity drivers are factors that measure the consumption of non-unit activities by products and other cost objects.

Product diversity means that the products consume overhead activities in systematically different proportions.

Units produced per year 10,000 100,000 110,000

Prime costs $78,000 $738,000 $816,000

Direct labor hours 10,000 90,000 100,000

Machine hours 5,000 45,000 50,000

Production runs 20 10 30

Number of moves 60 30 90

Belring, Inc.

Activity Usage Measures

Product-Costing Data

Cordless Regular Total

Activity Activity Cost

Belring, Inc.

Setups $120,000

Material handling 60,000

Machining 100,000

Testing 80,000

Total $360,000

Overhead Activities

Product-Costing Data

Belring, Inc.Product Diversity: Consumption Ratios

Setups 0.67 0.33 Production runs

Material

handling 0.67 0.33 Number of moves

Machining 0.10 0.90 Machine hours

Testing 0.10 0.90 Direct labor hours

Overhead Cordless Regular Activity

Activity Phone Phone Drivera a

b b

c c

d d

20/30 (cordless) and 10/30 (regular)a

Belring, Inc.Product Diversity: Consumption Ratios

Setups 0.67 0.33 Production runs

Material

handling 0.67 0.33 Number of moves

Machining 0.10 0.90 Machine hours

Testing 0.10 0.90 Direct labor hours

Overhead Cordless Regular Activity

Activity Phone Phone Drivera a

b b

c c

d d

60/90 (cordless) and 30/90 (regular)b

Belring, Inc.Product Diversity: Consumption Ratios

Setups 0.67 0.33 Production runs

Material

handling 0.67 0.33 Number of moves

Machining 0.10 0.90 Machine hours

Testing 0.10 0.90 Direct labor hours

Overhead Cordless Regular Activity

Activity Phone Phone Drivera a

b b

c c

d d

5,000/50,000 (cordless) and 45,000/50,000 (regular)c

Belring, Inc.Product Diversity: Consumption Ratios

Setups 0.67 0.33 Production runs

Material

handling 0.67 0.33 Number of moves

Machining 0.10 0.90 Machine hours

Testing 0.10 0.90 Direct labor hours

Overhead Cordless Regular Activity

Activity Phone Phone Drivera a

b b

c c

d d

10,000/100,000 (cordless) and 90,000/100,000 (regular)d

Setup rate: $120,000/30 =$4,000 per run

Material-handling rate: $60,000/90 = $666.67 per move

Machining rate: $100,000/50,000 = $2 per MH

Testing rate: $80,000/100,000 = $0.80 per DLH

Belring, Inc.Activity Rates

Cordless Regular

Prime costs $ 78,000 $ 738,000

Overhead costs:

Setups 80,000 40,000

Material handling 40,000 20,000

Machining 10,000 90,000

Testing 8,000 72,000

Total manufacturing costs $216,000 $ 960,000

Units produced 10,000 100,000

Unit cost (total costs/units) $ 21.60 $ 9.60

Belring, Inc.Activity Rates

$4,000x20

$4,000x10

$667x60

$667x30

$2x5,000

$2x45,000

$0.80x10,000

$0.80x90,000

Plantwide rate $11.40 $10.62

Departmental rate 10.73 10.69

Activity rate 21.60 9.60

Comparison of Unit Costs

Cordless Regular

Belring, Inc.

ACTIVITY-BASED

MANAGEMENT (ABM)Sistem terintegrasi

dengan pendekatan

terfokus pada perhatian

manajemen pada

aktivitas yang dapat

meningkatkan nilai

pelanggan dan

keuntungan perusahaan

DIMENSI ABM

Cost Dimension

Information aboutresources, activities, cost objects such as

Useful for products, customers, suppliers, distribution channels

Objective: improving accuracy of cost assignments

Process DimensionInformation about

What & Why activities are performedHow well they are performed

Objective: cost reductionProvides ability to engage in & measure continuous improvement

HUBUNGAN ABC - ABM

Sumber:Hansen&Mowen,2009

44

PVA emphasizes accountability for

activities rather than costs; focuses

on systemwide performance.

PROCESS VALUE ANALYSIS: Definition

Understanding what causes

activity costs by understanding

activity inputs & outputs; most

basic causes for an activity being

performed.

ROOT CAUSES: Definition

46

ACTIVITY ANALYSIS: Definition

The process of identifying,

describing, evaluating the

activities an organization

performs.

47

VALUE-ADDED ACTIVITIES

• Memenuhi kondisi▫ Dibutuhkan untuk memenuhi ketentuan hukum

▫ Discretionary, jika simultan memenuhi:

Menghasilkan perubahan kondisi

Tidak dapat dicapai dari aktivitas sebelumnya

Memungkinkan aktivitas lain dilakukan

▫ Performed at a value-added cost to achieve perfect efficiency

• Eliminate waste & reduce costs

48

NON-VALUE-ADDED ACTIVITIES

• Are unnecessary

• Fail to satisfy 3 defining conditions of value-added activities

• Incur non-value-added costs of inefficiency

LO 2

Ex:

• Scheduling

• Moving

• Waiting

• Inspecting

• Storing

Challenge of activity

analysis:produce goods without using non-

value-added activities.

49

REDUCING COSTS

• Activity elimination ▫ Focusing on non-value-added activities

• Activity selection ▫ Choosing among different sets of activities

• Activity reduction ▫ Reducing time, resources required

• Activity sharing ▫ Using economies of scale

50

COST REPORT: Step 1

Activity Activity Driver SQ* AQ* SP*

Welding Welding hours 10,000 12,000 $40

Rework Rework hours 0 10,000 9

Setups Setup hours 0 6,000 60

Inspection # Inspections 0 4,000 15

51

COST REPORT: Step 2

Activity

Value-

Added Costs

Non-Value-

Added Costs

Actual

Costs

Welding $400,000 $80,000 $480,000

Rework 0 90,000 90,000

Setups 0 360,000 360,000

Inspection 0 60,000 60,000

Total $ 400,000 $ 590,000 $ 990,000

52

KAIZEN COSTING: Definition

The effort to reduce costs of

existing products & processes.

Kaizen costing helps reduce costs by

repeated use of 2 subcycles:

1) continuous improvement, and

2) maintenance.

Plan Do Check Act

BENCHMARKING: Definition

Uses “best practices” as the

standard for evaluating activity

performance with the goal of

becoming the best at performing

activities & processes.