Professional Documents
Culture Documents
Objective
Mahasiswa mampu menjelaskan konsep
Topics
Definisi,
Klasifikasi, dan
Aliran biaya
objects is crucial
The objective is to measure and assign
as well as possible the cost of the
resources consumed by a cost object
it is better to be approximately correct
than precisely inaccurate
Distorted cost assignments can
produce erroneous decisions and bad
evaluations.
Direct
Tracing
Driver
Tracing
Allocation
Physical
Observation
Causal
Relationship
Assumed
Relationship
Cost Objects
Traceability
Traceability is the ability to assign a cost to a cost
object in an economically feasible way by means of
a causal relationship.
Direct costs are those costs that can be easily and
accurately traced to a cost object.
Example: The salary of a supervisor of a
department, where the department is
defined as the cost object.
Indirect costs are those costs that cannot be traced
easily and accurately to a cost object.
Example: The cost of heating and cooling a plant
that manufactures five products.
Methods of Tracing
Direct tracing
Identifies and assigns costs that are exclusively and
physically associated with a cost object to that cost
object
Driver tracing
Uses drivers to assign costs to cost objects
Drivers are factors that cause changes in resource usage
Indirect costs
Indirect costs are those that cannot be assigned to cost
objects using either direct tracing or driver tracing
Assignment of indirect costs to cost objects is called
allocation
Since no causal relationship exists, allocating indirect
costs is based on convenience or some assumed linkage
Cost Classifications
Cost Classifications for Assigning Costs:
Direct costs, indirect costs
Behavior:
Variable costs, fixed costs, mixed costs
Financial Statements:
Manufacturing costs, non manufacturing costs,
Product Costs
Costs are subdivided into two major
functional categories:
Production costs costs associated with the
Manufacturing Cost
Manufacturing Costs
Direct
Direct
Materials
Materials
Direct
Direct
Labor
Labor
The Product
Manufacturing
Manufacturing
Overhead
Overhead
Direct Materials
Direct materials are materials that are
Direct Labor
Those labor costs that can be easily traced to
Example:
Example: Wages
Wages paid
paid to
to automobile
automobile assembly
assembly workers
workers
or indirect labor.
Direct labor is basically "touch labor."
Indirect labor is the rest of the
Manufacturing Overhead
Manufacturing costs that cannot be traced
directly to specific units produced.
Nonmanufacturing Costs
Marketing and selling costs . . .
Costs necessary to get the
costs.
Sale
Balance
Sheet
Income
Statement
Income
Statement
Balance Sheet
Merchandiser
Current assets
Cash
Receivables
Prepaid expenses
Merchandise
inventory
Manufacturer
Current Assets
Cash
Receivables
Prepaid Expenses
Inventories
Raw Materials
Work in Process
Finished Goods
Balance Sheet
Merchandiser
Current assets
Cash
Receivables
Partially
Prepaid complete
expenses
some
products
Merchandise
material,
inventorylabor, or
overhead has been
added.
Manufacturer
Current Assets
Cash waiting to
Materials
be processed.
Receivables
Prepaid Expenses
Inventories
Raw Materials
Work in Process
Finished Goods
Completed
products
awaiting sale.
Manufacturing Company
Cost of goods sold:
Beg. finished
goods inv.
+ Cost of goods
manufactured
Goods available
for sale
- Ending
finished goods
inventory
= Cost of goods
sold
$ 14,200
234,150
$248,350
(12,100)
$236,250
$200,000
Add: Purchases
450,000
Materials available
$650,000
50,000
$ 600,000
350,000
Manufacturing overhead:
Indirect labor
$122,500
Depreciation
177,500
Rent
50,000
Utilities
37,500
Property taxes
12,500
Maintenance
Total manufacturing costs added
50,000
450,000
continued
$1,400,000
$1,400,000
200,000
400,000
$1,200,000
From
Fromthe
the
Statement
Statementof
ofCost
Cost
of
ofGoods
Goods
Manufactured
Manufactured
Manufacturing Organization
Income Statement
For the Year Ended December 31, 2004
Sales
$2,800,000
Less: Cost of goods sold
1,300,000
Gross margin
$ 700,000
Less operating expenses:
Selling expenses
$300,000
Administrative expenses
150,000 From
450,000
Fromthe
theCost
Costof
of
Operating income
$ 250,000 Goods
GoodsSold
Sold
Schedule
Schedule
Note
Every decision involves a choice from
Quick Check
Which of the following costs would be
considered manufacturing overhead at
Boeing? (More than one answer may be
correct.)
A. Depreciation on factory forklift trucks.
B. Sales commissions.
C. The cost of a flight recorder in a Boeing
767.
D. The wages of a production shift
supervisor.
Quick Check
Which of the following costs would be
considered a period rather than a product
cost in a manufacturing company?
A. Manufacturing equipment depreciation.
B. Property taxes on corporate
headquarters.
C. Direct materials costs.
D. Electrical costs to light the production
facility.
Quick Check
Which of the following transactions would
immediately result in an expense? (There
may be more than one correct answer.)
A. Work in process is completed.
B. Finished goods are sold.
C. Raw materials are placed into
production.
D. Administrative salaries are accrued
and paid.
Quick Check
Suppose you are trying to decide whether
to drive or take the train to Portland to
attend a concert. You have ample cash to
do either, but you dont want to waste
money needlessly. Is the cost of the pizza
you ate last night relevant in this
decision? In other words, should the cost
of the pizza affect the decision of whether
you drive or take the train to Portland?
A. Yes, the cost of the pizza is relevant.
B. No, the cost of the pizza is not
relevant.
Quick Check
Suppose you are trying to decide whether
to drive or take the train to Portland to
attend a concert. You have ample cash to
do either, but you dont want to waste
money needlessly. Is the cost of the train
ticket relevant in this decision? In other
words, should the cost of the train ticket
affect the decision of whether you drive or
take the train to Portland?
A. Yes, the cost of the train ticket is
relevant.
B. No, the cost of the train ticket is not
Quick Check
Suppose you are trying to decide whether
to drive or take the train to Portland to
attend a concert. You have ample cash to
do either, but you dont want to waste
money needlessly. Is the annual cost of
licensing your car relevant in this
decision?
A. Yes, the licensing cost is relevant.
B. No, the licensing cost is not relevant.
Quick Check
Suppose you are trying to decide whether
to drive or take the train to Portland to
attend a concert. You have ample cash to
do either, but you dont want to waste
money needlessly. Is the depreciation on
your car relevant in this decision?
A. Yes, the depreciation is relevant.
B. No, the depreciation is not relevant.