1. cost managment & strat

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Estimasi dan Analisis BiayaA, Imam Istiyanto

Horngren, Datar, Foster ; Cost Accounting-AManagerial Emphasis; Prentice Hall

Blocher, Chen, Lin; Cost Management; Irwin,McGraw Hill


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Outline

Pendahuluan

Accounting: Konsep, Proses, Laporan Keuangan

Konsep Biaya Analisis Profit Volume

Job Costing

Analisis Variance Activity Based Costing

Prosess Costing


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Cost Management and Strategy: AnOverview

Chapter One


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A firm succeeds by implementing a set of policies,

procedures, and approaches to business called

strategy

Strategy must have a long-term focus and adapt to

the changing environment

Cost management information should be used to

develop and monitor strategic information

Competitive Strategies


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Competitive Strategies (continued)

Aspect Cost Leadership Differentiation

Strategic

Target

Broad cross section of

the market

Focused cross section

of the market

Basis ofcompetitive

advantage

Lowest cost in theindustry Unique product orservice

Product line Limited selection Wide variety

Productionemphasis

Lowest possible costand essential features

Innovation indifferentiating products

Marketing

emphasis

Low price Premium price and

innovative features


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Serves all management functions

Information a manager needs to manage effectively

Financial and nonfinancial

Financial information alone shows a short-term focus

Developed under the direction of the controller for the

Chief Financial Officer (CFO) of the organization

Cost Management Information


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Typical Organization Chart

Chief FinancialChief Financial

Officer (CFO)Officer (CFO)

Chief Executive Officer (CEO)Chief Executive Officer (CEO)

Vice PresidentVice President

for Marketingfor Marketing

Vice PresidentVice President

for Operationsfor Operations

ControllerController TreasurerTreasurerChief InformationChief Information

Officer (CIO)Officer (CIO)

Cost ManagementCost Management

Financial SystemsFinancial ReportingOther Reporting Obligations (e.g., tax)


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Financial reporting

External users

Emphasis on accuracy and compliance Cost management

Internal users

Emphasis on usefulness and timeliness, key

characteristics of decision-relevant information

Challenge for controller to reconcile these potentially

conflicting roles

Cost Management vs.

Financial Reporting


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Cost management information is

assembled to aid management in thefollowing functions:

Strategic management

Planning and decision-making

Management and operational control

Preparation of financial statements

Four Functions of

Management


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Strategic management

Most important management function

Involves identifying and implementing goals and action

plans to maintain a competitive advantage

Monitoring of Critical Success Factors (CSFs) is necessary

Critical to a firms success due to global competition and

rapidly changing markets

Strategic cost management information vs. traditional

cost management?

Management Functions


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Planning and decision-making Information is needed to support reoccurring decisions

such as scheduling production and pricing

Information is needed for short-run planning (budgeting)and profit planning (Cost-Volume-Profit analysis)

Management and operational control

Information is needed to identify inefficient operationsand reward effective management practices

Preparation of financial statements

Information is needed to guarantee compliance withregulations (GAAP) and regulatory reportingrequirements

Management Functions (continued)


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Types of Organizations

MerchandisersManufacturers

Service

firms

Government and

Not-for-profit

Wholesalers Retailers


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1. Shift to a global business environment

Economic interdependence and increased

competition2. New manufacturing technologies stemming from

the global business environment

Just-in-time (JIT) inventory methods and quality

control Emphasis on speed-to-market(i.e., time-based

competition)

Changes in the Contemporary Business

Environment


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3. Importance of information technology

Increased use of the internet has reduced

processing time and facilitated informationexchange

4. Focus on the customer

Consumers expect functionality, quality and

customization

Shorter product life-cycles have intensified

competition


Environment (continued)


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5. Shifts in management organization

The focus has shifted from financial measures and

hierarchal command-and-control organizations tononfinancial measures and flexible organizational

structures

6. Social, political, and cultural considerations

Changes include a more diverse workforce, a renewedsense of ethical responsibility, and increased

deregulation of business


Environment (continued)


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The management accountants role:

Provide cost-management information at a rigorouspace to keep up with the ever-changing environment

The information provided should include as manynonfinancial measures as possible a variety ofoperating and financial measures

The reports should be applicable to cross- functionalteams and conducive with a flexible managementstructure

How do these changes affect

management accounting?

1. cost managment & strat

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