ANALISIS BIAYA

Semester Gasal TA 2016 2017

Konsep, Klasifikasi, dan Aliran
Biaya

Objective
Mahasiswa mampu menjelaskan konsep

biaya dan menggolongkan biaya-biaya

sesuai dengan klasifikasinya serta
menunjukkan aliran biaya

Topics
Definisi,
Klasifikasi, dan
Aliran biaya

Basic Cost Concepts

Cost is the cash or cash equivalent

value sacrificed for goods and services

that are expected to bring a current or
future benefit to the organization.
Expired costs are called expenses.
Unexpired costs are classified as assets
and appear on the balance sheet.
Assigning cost accurately to cost
objects is crucial.

Basic Cost Concepts

A cost object is 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
materials, maintaining equipment,
designing products, etc.

Basic Cost Concepts

Assigning costs accurately to cost

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.

Cost Assignment Methods

Cost of Resources

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

and thus have cause-and-effect relationship with the

costs associated with a cost object.

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

Cost Classifications to Describe Cost

Behavior:
Variable costs, fixed costs, mixed costs

Cost Classifications for Preparing External

Financial Statements:
Manufacturing costs, non manufacturing costs,

product costs, period costs

Product and Service Costs

The output of organizations represents

one of the most important cost objects

Two types of output:
Tangible products: goods produced by

converting raw materials through the use of

labor and capital inputs
Services: tasks or activities performed for a
customer using an organizations products
or facilities

Product Costs
Costs are subdivided into two major

functional categories:
Production costs costs associated with the

manufacture of goods or provision of services

Non production costs associated with the
functions of designing, developing, marketing,
distribution, customer service, and general
administration

For tangible goods:

Production cost = manufacturing cost
Non production cost = non manufacturing cost

Cost Classifications for

Manufacturing Firms
Manufacturing Costs (product costs): all costs
associated with the production of goods.
1. Direct Material
2. Direct Labor
3. Manufacturing Overhead

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

directly traceable to the goods or services

being produces;
physical observation can be used to measure

the quantity consumed by each product

Materials that become part of a tangible
product or those that are used in providing a
service are usually classified as direct
materials

Direct Labor
Those labor costs that can be easily traced to

individual units of product.

Physical observation can be used
Employees who convert raw materials into a
product or who provide a service to customers

Example:
Example: Wages
Wages paid
paid to
to automobile
automobile assembly
assembly workers
workers

Classification of Labor Costs

Factory labor costs are classified as direct

or indirect labor.
Direct labor is basically "touch labor."
Indirect labor is the rest of the

manufacturing labor cost and it is classified

as part of manufacturing overhead.
Examples of indirect labor include the
wages and salaries of janitors, supervisors,
material handlers, and maintenance
workers.

Manufacturing Overhead
Manufacturing costs that cannot be traced
directly to specific units produced.

Nonmanufacturing Costs
Marketing and selling costs . . .
Costs necessary to get the

order and deliver the product.

Administrative costs . . .
All executive, organizational, and clerical

costs.

Product Costs Versus Period Costs

Product costs include
direct materials, direct
labor, and
manufacturing
overhead.
Inventory

Cost of Good Sold

Period costs are not included in

product costs. They are expensed on
the income statement.
Expense

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.

The Income Statement

Cost of goods sold for manufacturers differs only
slightly from cost of goods sold for merchandisers.
Merchandising Company
Cost of goods sold:
Beg. merchandise
inventory
$ 14,200
+ Purchases
234,150
Goods available
for sale
$ 248,350
- Ending
merchandise
inventory
(12,100)
= Cost of goods
sold
$ 236,250

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

Statement of Cost of Goods Manufactured

For the Year Ended December 31, 2004
Direct materials:
Beginning inventory

$200,000

Add: Purchases

450,000

Materials available

$650,000

Less: Ending inventory

50,000

Direct materials used in production

Direct labor

$ 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

Total manufacturing costs added

Add: Beginning work in process
Less: Ending work in process
Cost of goods manufactured

$1,400,000
200,000
400,000
$1,200,000

Work in process consists of all

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

Cost of Goods Sold Schedule

For the Year Ended December 31, 2004
Cost of goods manufactured $1,200,000
Add: Beginning inventory finished goods
250,000
Cost of goods available for sale $1,450,000
Less: Ending inventory finished goods
150,000
Cost of goods sold
$1,300,000

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

Cost Classifications for DecisionMaking

Every decision involves choosing from

among at least two alternatives.

Only those costs and benefits that differ
between alternatives are relevant in
making the selection.

Note
Every decision involves a choice from

among at least two alternatives.

Only those costs and benefits that differ
between alternatives (i.E., Differential
costs and benefits) are relevant in a
decision. All other costs and benefits can
and should be ignored.

Differential Costs and Revenues

Costs and revenues that differ among
alternatives.
Example: You have a job paying $1,500 per month
in your hometown. You have a job offer in a
neighboring city that pays $2,000 per month. The
commuting cost to the city is $300 per month.

Differential revenue is:

$2,000 $1,500 = $500
Differential cost is:
$300

Flow of Product Costs in Accounts

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.