MINGGU 4

AKUNTANSI MANAJEMEN
Pokok Bahasan:
Manajemen berdasarkan aktivitas

Tujuan Instruksional Khusus:

Mahasiswa harus mampu :
*Membandingkan dan membedakan sistem akuntansi
pertanggungjawaban berdasarkan fungsional, aktivitas dan strategi.
* Menjelaskan analisis nilai proses
* Mendeskripsikan pengukuran kinerja aktivitas.
* Membahas ciri-ciri dasar balance scorecard.

Referensi:
1. Don R. Hansen & Maryanne M. Mowen, Management Accounting,
South-Western, 8th ed, 2009.
2. Ronald W. Hilton, Mangerial Accounting, 7th ed., 2008, Mc. Graw Hill.
Akuntansi Manajemen Minggu 4 Page 1
 Classification of Activities

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, property
taxes, and plant depreciation.
 A1 A2 A3 A4 A5

Activit
y Level
Filter

Unit Level Batch Level Product Level Facility Level

Driver Driver Driver

Filter Filter Filter

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

Customer
Costing versus
Product Costing
 Example
Large Customer Ten Smaller Customers
(50% of sales) (50% of sales)

Units purchased 500,000 500,000

Orders placed 2 200
Number of sales calls 10 210
Manufacturing cost $3,000,000 $3,000,000
Order-filling costs
allocated $202,000 $202,000
Sales-force costs
allocated $110,000 $110,000
 Example

The purchasing manager uses two suppliers,

Murray Inc. and Plata Associates, as the source of
two machine parts: Part A1 and Part B2.

Activity Costs
Repairing products $800,000
Expending products 200,000
 Example
Murray Inc. Plata Associates
Part A 1 Part B2 Part A 1 Part B2
Unit purchase price $20 $52 $24 $56
Units purchased 80,000 40,000 10,000 10,000
Failed units 1,600 380 10 10
Late shipments 60 40 0 0

Repair rate = $800,000 ÷ 2,000 = $400 per failed part

Expediting rate = $200,000 ÷ 100 = $2,000 per late
(1,600 + 380 + 10 + 10)
delivery
60 + 40
 Example
Murray Inc. Plata Associates
Part A 1 Part B2 Part A 1 Part B2
Purchase cost $1,600,000 $2,080,000 $240,000 $560,000
Repairing products 640,000 152,000 4,000 4,000
Expediting products 120,000 80,000
Total costs $2,360,000 $2,312,000 $244,000 $564,000
Units ÷ 80,000 ÷ 40,000 ÷ 10,000 ÷ 10,000
Total unit cost $ 29.50 $ 57.80 $ 24.40 $ 56.40
Elements of a
Functional-Based
Responsibility
Accounting System
 Individual Organizational
in Charge Unit
Responsibility Is Defined
Operating Financial
Efficiency Outcomes
Unit Standard
Budgets Performance Measures Are Costing
Static Established Currently
Standards Attainable Stds.
Financial Controllable
Efficiency Performance Is Measured Costs
Actual vs. Financial
Standard Measures

Promotions Individuals Are Rewarded Bonuses

Based on Financial
Profit Salary
Performance
Sharing Increases
 Activity-
Based Responsibility
Accounting System

•An activity-based responsibility accounting

system assigns responsibility to processes and
uses both financial and nonfinancial measures of
It is the responsibility accounting system
performance.
developed for those firms operating in continuous
improvement environments.
Elements of an
Activity-Based
Responsibility
Accounting System
 Team Process
Responsibility Is Defined
Value Chain Financial

Optimal Dynamic
Performance Measures Are
Process Established Value-
Oriented Added
Time Quality
Reductions Performance Is Measured Improvement
Cost Trend
Reductions Measures

Promotions Individuals Are Rewarded Bonuses

Based on Multidimensional
Gain- Salary
Performance
Sharing Increases
 Strategy-
Based Responsibility
Accounting System
A strategic-based responsibility accounting system (Balanced
Scorecard) translates the mission and strategy of an organization
into operational objectives and measures for four different
perspectives:

The financial perspective

The customer perspective
The process perspective
The infrastructure (learning and growth)
perspective
Elements of a
Strategy-Based
Responsibility
Accounting System
 Financial Customer
Responsibility Is Defined
Process Infrastructure
Communica-
tion Strategy Balanced
Performance Measures Are Measures
Alignment of Established Link to
Objectives Strategy
Financial Customer
Measures Performance Is Measured Measures
Process Infrastructure
Measures Measures

Promotions Individuals Are Rewarded Bonuses

Based on Multidimensional
Gain- Salary
Performance
Sharing Increases
 Activity-Based Management
(ABM)

•Activity-based management (ABM) is a

systemwide, integrated approach that focuses
management’s attention on activities with the
objective of improving customer value and the
Activity-based management encompasses both product
profit
costing achieved
and process by providing
value analysis. this value.

The activity-based management model has two

dimension: a cost dimension and a process dimension.
 Activity-Based Management
Cost Dimension
Model
Resources

Process Dimension

Driver Performance
Activities
Analysis Analysis

Why? What? How well?

Products
and
Customers
 Process Value Analysis
•Process value analysis is fundamental to
activity-based responsibility accounting, focuses
on accountability for activities rather than costs,
and emphasizes the maximization of systemwide
performance instead of individual performance.
Process value analysis is concerned with:
Driver analysis
Activity analysis
Activity performance measurement
 Activity Analysis
Activity analysis is the process of identifying, describing, and
evaluating the activities an organization performs.

Activity analysis should produce four outcomes:

 What activities are done.

 How many people perform the activities.
 The time and resources are required to perform the
activities.
 An assessment of the value of the activities to the
organization.
Those activities necessary to
remain in business are called
value-added activities.

Value-
Added
Activities
Activities needed to comply with
the reporting requirements, such as
the SEC, are value-added by a
mandate.

Value-
Added
Activities
•A discretionary activity is classified as value-
added provided it simultaneously satisfies three
The activity produces a change of state.
conditions:
The change of state was not achievable by preceding
activities.
The activity enables other activities to be performed.

Value-
Added
Activities
 All activities other than those
essential to remain in business are
referred to as nonvalue-added
activities.

Nonvalue
-Added
Activities
  Scheduling
 Moving
Nonvalue-
 Waiting
Added
Activities  Inspecting
 Storing
 Activity Analysis
Activity Analysis Can Reduce Costs in Four Ways:

• Activity
elimination
• Activity selection
• Activity reduction
• Activity sharing
Measures of Activity
Performance

Efficiency
Quality
Time
 Measures of Activity
•Financial measures
Performance
of
activity efficiency include:
• Value and nonvalue-added
activity cost reports
• Trends in activity cost reports
• Kaizen standard setting
• Benchmarking
• Life-cycle costing
 Value- and Nonvalue-
Added Cost Reporting
•Activity Activity Driver SQ AQ SP
•Welding Welding hours 10,000 8,000 $40
•Rework Rework hours 0 10,000 9
•Setups Setup hours 0 6,000 60
•Inspection Number of inspections 0 4,000 15

Value-added standards
call for their
elimination
 Value- and Nonvalue-Added
Cost Reporting
Activity Activity Driver SQ AQ SP
Welding Welding hours 10,000 8,000 $40
Rework Rework hours 0 10,000 9
Setups Setup hours 0 6,000 60
Inspection Number of inspections 0 4,000 15

Value-added standards
call for their
elimination
 Formulas
Value-added costs = SQ x SP
Nonvalue-added costs = (AQ – SQ)SP

Where SQ = The value-added output level of an activity

SQ = The standard price per unit of activity
output measure
AQ = The actual quantity used of flexible
resources or the practical activity capacity
acquired for committed resources
 Value- and Nonvalue-
Added Cost Report
Value-Added Nonvalue- Actual
Activity Costs Added Costs Costs
Welding $400,000 $ - 80,000 $320,000
Rework 0 90,000 90,000
Setups 0 360,000 360,000
Inspection 0 60,000 60,000
Total $400,000 $430,000 $830,000
Trend Report: Nonvalue-Added Costs
Nonvalue-Added Costs
Activity 2003 2004 Change
Welding -$80,000 $ 50,000 $ 30,000
Rework 90,000 70,000 20,000
Setups 360,000 200,000 160,000
Inspection 60,000 35,000 25,000
Total $430,000 $355,000 $235,000
 The Role of Kaizen Standards
•Kaizen costing is concerned with
reducing the costs of existing
products and processes.
–Controlling this cost reduction
process is accomplished through the
repetitive use of two major
subcycles:
(1) the kaizen or continuous
improvement cycle, and
(2) the maintenance cycle.
 Kaizen Cost Reduction Process

Check Check

Do Act Do Act

Search
Plan Lock in Standard

Kaizen Subcycle Maintenance Subcycle

Benchmarking uses best practices
as the standard for evaluating
activity performance.
Activity Capacity Management

•Activity capacity is
the number of times
an activity can be
performed.
 Activity Capacity Variance
AQ = Activity capacity acquired (practical capacity)
SQ = Activity capacity that should be used
AU = Actual usage of the activity
SP = Fixed activity rate

SP x SQ SP x AQ SP x AU
$2,000 x 0 $2,000 x 60 $2000 x 40
$0 $120,000 Unused $80,000
Activity
Volume Variance Capacity Variance
$120,000 U $40,000 F
 Life-Cycle Cost Commitment
Curve
Life Cycle
Cost %

100
90 Cost Commitment
80 Curve
70
60 90 percent of life-
50 cycle costs are
40 committed at this
30 point
20
10

Planning Design Testing Production Logistics

 Target Costing
A target cost is the difference between the sales
price needed to capture a predetermined market
share and the desired per-unit profit.
Example: Current product specifications and the targeted
market share call for a sales price of $250,000. The
required profit is $50,000 per unit. The target cost
is computed as follows:

$250,000 – $50,000 = $200,000

Market Share Target Price Product
Objective Functionality
Target Profit
Target-
Costing Target Cost
Model
Product and
Process Design

NO
Target Cost
Met?
YES
Produce Profit
 Life-Cycle Costing: Budgeted
Costs and Income
Unit Cost and Price Information for New Product
Unit production cost $ 6
Unit life-cycle cost 10
Unit whole-life cost 12
Budgeted unit selling price 15
 Budgeted Costs
Item 2003 2004 2005 Item Total
Development costs $200,000 ---- ---- $ 200,000
Production costs ---- $240,000 $360,000 600,000
Logistic costs ---- 80,000 120,000 200,000
Annual subtotal $200,000 $320,000 $480,000 $1,000,000
Postpurchase costs --- 80,000 120,000 200,000
Annual total $200,000 $400,000 $600,000 $1,200,000

Units produced 40,000 60,000

Note: The post purchase costs are costs incurred by the customer and are not
included in the budgeted income e statement.
Budgeted Product Income Statements
Annual Cumulative
Year Revenues Costs Income Income
2003 ---- -$200,000 -$200,000 -$200,000
2004 $600,000 -320,000 280,000 80,000
2005 900,000 -480,000 420,000 500,000
 Performance Report for
Life-Cycle Costs
Year Item Actual Costs Budgeted Costs Variance
2003 Development $190,000 $200,000 $10,000 F
2004 Production 300,000 240,000 60,000 U
Logistics 75,000 80,000 5,000 F
2005 Production 435,000 360,000 75,000 U
Logistics 110,000 120,000 10,000 F
Analysis: Production costs were higher than expected because
insertions of diodes and integrated circuits also drive costs (both
production and postpurchase costs).
Conclusion: The design of future products should try to
minimize total insertions.
 The Balanced Scorecard translates an
organization’s mission and strategy into
operational objectives and performance
measures for four different perspectives:

 The financial perspective

 The customer perspective
The  The internal business process
Balanced
perspective
Scorecard
 The learning and growth
perspective
Strategy, according to Robert Kaplan and
David Norton, is defined as
“. . . choosing the market and customer
segments the business unit intends to serve,
identifying the critical internal and business
processes that the unit must excel at to
deliver the value propositions to customers
in the targeted market segments, and
selecting the individual and organizational
capabilities required for the internal,
customer, and financial objectives.”
 Vision and Strategy

Financial Customer Process Infrastructure

Objectives

Strategy-
Measures
Translation
Process
Targets

Initiatives
Financial Increase Sales Increase Profits

Increase
Increase
Customer Customer
Market Share
Satisfaction

Process Redesign Reduce

Products Defective Units

Infra-structure Quality Testable Strategy

Training Illustrated
Summary of Objectives and Measures:
Financial Perspective
Objectives
Revenue Growth:
Increase the number of new
products
Create new applications
Develop new customers and
markets
Adopt a new pricing strategy
Measures
Percentage of revenue
from new products
Percentage of repeat
customers
Percentage of revenue from
new sources
Product and customer
profitability
 Objectives Measures
Cost Reduction:
Reduce unit product cost Unit product cost

Reduce unit customer cost Unit customer cost

Reduce distribution channel cost Cost per distribution channel

Asset Utilization:
Improve asset utilization Return on investment
Economic value added
Summary of Objectives and Measures:
Customer Perspective
Objectives
Core:
Increase market share
Increase customer retention
Increase customer acquisition
Increase customer satisfaction
Increase customer profitability
Measures
Market share (percentage of
market)
Percentage of repeat
customers
Number of new customers
Ratings from customer
surveys
Customer profitability
 Objectives
Performance Value:
Decrease price
Decrease postpurchase costs
Improve product functionality
Improve product quality
Increase delivery reliability
Improve product image and
reputation
Measures
Price
Postpurchase costs
Ratings from customer
surveys
Percentage of returns
On-time delivery percentage
Aging schedule
Ratings from customer
surveys
 Actual Conversion Cost per Unit
Standard costs per minute = $1,600,000/400,000
= $4 per minute
Actual cycle time = 60 minutes/10 units
= 6 minutes per unit
Actual conversion costs = $4 x 6
= $24 per unit

Theoretical Conversion Cost per Unit

Theoretical cycle time = 60 minutes/12 units
= 5 minutes per unit
Theoretical conversion
costs = $4 x 5
= $20 per unit
Summary of Objectives and Measures:
Process Perspective
Objectives
Innovation:
Increase the number of new
products
Increase proprietary products
Decrease new product
development time
Measures
Number of new products vs.
planned
Percentage of revenue from
proprietary products
Time to market (from start
to finish)
 Objectives Measures
Operations:
Increase product quality Quality costs
Output yields
Percentage of defective units
Increase process efficiency Unit cost trends
Output/input(s)
Decrease process time Cycle time and velocity
MCE
Postsales Service:
Increase service quality First-pass yields
Increase service efficiency Cost trends
Output/input(s)
Decrease service time Cycle time
Summary of Objectives and Measures:
Learning and Growth Perspective
Objectives
Increase employee capabilities
Measures
Employee satisfaction ratings
Employee turnover percentage
Employee productivity
(revenue/employee)
Hours of training
Strategic job coverage ratio
(percentage of critical job
requirements filled)
 Objectives Measures
Increase motivation and Suggestions per employee
alignment Suggestions implemented per
employee
Increase information systems Percentage of processes with
capabilities real-time feedback
capabilities
Percentage of customer-facing
employees with on-line
access to customer and
product information
The End