Rencana Pembelajaran 2

Developing Cost Management System

Program Profesi Akuntansi (PPAk)

Fakultas Ekonomi dan Bisnis
 Cost Classifications
Costs can be classified into five categories:
Behavior
Traceability
Controllability
Relevance
Function

Any cost may be categorized using any one

or a combination of the five different
classifications.
Traditional Manufacturing Costing
Systems

 Uses actual departments or cost centers for

accumulating and redistributing costs
 Asks how much of an allocation basis (usually based
on volume) is used by the production department
 Service department expenses are allocated to a
production department based on the ratio of the
allocation basis used by the production department
Traditional Manufacturing Costing
Systems

 Typical volume-based cost drivers include:

• Direct labor hours
• Machine hours
• Direct labor dollars
 Adequate for companies with high-volume products
with similar production volumes and batch sizes
 Can lead to product cost distortion in an
environment of high product variety
 Activity-Based Cost Systems

• Activity-based cost systems have been developed to

eliminate distortion

• Time-driven activity-based costing systems (TDABC or Time-

Driven ABC) estimate two parameters and then assign
indirect costs similar to the way direct costs are assigned
Historical Origins of Activity-Based
Costing
 Historical Origins

• Time-driven ABC is a contemporary version of the original

ABC method introduced in the 1980s

• The original version used a two-stage estimation approach

 Two-Stage Estimation Approach
• First stage
• Interview and survey employees to identify principle activities
and estimate percentage of time spent on activities
• Use percentages to assign costs to activities

• Second stage
• Assign activity costs to products based on estimates of the
quantity of each activity used in the production of the product
 Limitations of Original ABC
• Problems may arise in practice from the approach to
activity-based costing that assigns many resource expenses
to activities based on interviews, surveys, and direct
observation of production and support processes because
these activities are time-consuming and expensive
 Limitations of Original ABC
 Inaccuracies and bias may affect the accuracy of cost driver
rates derived from individuals’ subjective estimates of their
past or future behavior
 Companies must periodically repeat the interviewing and
surveying processes if they want to keep their activity-
based cost systems updated
 Adding new activities to the system is also difficult,
requiring re-estimates of the relative amount of resource
time and effort required by the new activity
 Limitations of Original ABC
• A more subtle and serious problem arises from the
interview or survey process
• People estimating how much time they spend on a list of
activities handed to them invariably report percentages that add
up to 100%

• Few individuals report that a significant percentage of their time

is idle or unused
 Advantages of TDABC
• Easy and fast to build an accurate model even for large
enterprises

• Exploits the detailed transactions data that are available

from ERP systems

• Uses time equations that use specific characteristics of

particular orders, processes, suppliers, and customers
 Advantages of TDABC
• Enables managers to forecast future resource demands

• Easy to update the model as resource costs and process

efficiencies change
Referensi :
• Edward J. Blocher, David E. Stout, Gary Cokins, Kung H. Chen (2008). Cost Management: A Strategic Emphasis, 4th edition, Mc-Graw-Hill International Edition. (BSCC)
• Jack Campanela (1999). Principles of Quality Costs: Principles, Implementation, and Use, 3rd edition, ASQ Quality Press.
• Robin Cooper (1995). When Lean Enterprise Collide. Harvard Business School Press.
• Don R. Hansen, Maryanne M. Mowen, Liming Guan (2009). Cost Management, 6th edition. South-Western Cengage Learning. (Hansen, Mowen& Guan)
• Jeremy Hope and Steve Player (2012). Beyond Performance Management: Why, When and How to Use 40 Tools and Best Practices for Superior Business
Performance. Harvard Business Review Press.
• Robert S. Kaplan and Steven R. Anderson (2007). Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits. Harvard Business
School Press.
• Robert S. Kaplan and Robin Cooper (1998). Cost and Effect; Using Integrated Cost Systems to Drive Profitability and Performance. Harvard Business School
Press.
• Robert S. Kaplan and Robin Cooper (1999). The Design of Cost Management Systems; Text and Cases, 2nd edition, Prentice-Hall.
• Robert S. Kaplan and Thomas H. Johnson (1987). Relevance Lost: The Rise and Fall of Management Accounting. The Free-Press.
• Robert S. Kaplan and David P. Norton (2004). Strategy Maps; Converting Intangible Assets Into Tangible Outcomes. Harvard Business School Press.
• Robert S. Kaplan and David P. Norton (2008). The Execution Premium; Linking Strategy to Operations for Competitive Advantage. Harvard Business School
Press. (Kaplan & Norton, 2008)
• Robert S. Kaplan and David P. Norton (2001). The Strategy Focused Organization; How Balanced Scorecard Companies Thrive in the New Business
Environment. Harvard Business Press School Press. (Kaplan & Norton (2001))
• V. Kumar (2008). Managing Customers for Profit; Strategies to Increase Profit and Build Loyalty. Wharton School Publishing.
• James M. Reeve (2000). Readings and Issues in Cost Management 2nd edition. South-Western College Publishing.
• John K. Shank (2006). Cases in Cost Management a strategic Emphasis, 3rd edition, Thomson-Southwetern. (Shank)
• Robert Simons (2000). Performance Measurement and Control Systems for Implementing Strategy. Prentice-Hall. (Simons)