TUGAS ASSIGNMENT

COST ACCOUNTING LB90

FRANS SUGATA HERMANTO

ACCOUNTING / 2401955031

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Chapter 1

Introduction to Cost Accounting

Essay Questions

1. Explain definition of cost accounting and the role of cost accounting!

Cost accounting is a type of form of managerial accounting that records, analyzes,
and reports all of a company's costs related to the production of a product or the
costs of acquiring and even using resources in an organization. The role of cost
accounting is very important in understanding where is the company is spending.
Cost accounting can show data about which products, departments, or services are
most profitable in the company.
2. What is your opinion about costs and benefits information?
Cost and benefits information is a systematic analysis of the strengths and
weaknesses to determine options that provide the best approach to achieving
benefits while preserve savings of a company. There are advantages for a company
with having information of cost and benefits, cost and benefits information allows
an organization to evaluate a decision or potential project free of opinions or
biases. This would make decision making in a company much more simplified and
more logical.
3. How does management accounting differ from financial accounting?
Management accounting is a process of preparing reports about business
operations that help managers make short-term and long-term decisions. It helps a
business pursue its goals by identifying, measuring, analyzing, interpreting, and
communicating information to managers. The role of the management accountant
is to perform a series of tasks to ensure their company's financial security, handling
essentially all financial matters and thus helping to drive the business's overall
management and strategy. On the other hand, Financial accounting is a process of
recording, summarizing, and reporting transactions from business operations over
a period of time. They do have their own role, producing general purpose financial
statements. producing information used by the management of a business entity
for decision making, planning, and performance evaluation.
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4. For each of the following activities, identify whether the main role of accounting is
(1) problem solving, (2) scorekeeping, or (3) attention directing.

Item:
a. Analyzing the impact of introducing a new product on production
Problem solving (1)
b. Comparing results between actual costs and budgeted costs for each step of
manufacturing a product
Attention directing (3)
c. Preparing a report that analyzes changes in cost resulting from reducing the
number of tubing sizes used during production from six down to two
Attention directing (3)
d. Reporting sales by branch for the sales manager
Scorekeeping (2)

5. For each report listed below, identify whether the major purpose of the report is for
(1) routine internal reporting, (2) nonroutine internal reporting, or for (3) external
reporting to investors and other outside parties.

Item:
a. study detailing sale information of the top-ten selling products
Nonroutine internal reporting (2)
b. weekly report of total sales generated by each store in the metropolitan area
Routine internal reporting (1)
c. annual Report sent to shareholders
External reporting to investors and others outside parties (3)
d. monthly report comparing budgeted sales by store to actual sales
Routine internal reporting (1)