Rencana Pembelajaran 1

INTRODUCTION TO ADVANCED MANAGEMENT

ACCOUNTING

Program Profesi Akuntansi (PPAk)

Fakultas Ekonomi dan Bisnis
• RELEVANCE LOST. THE RISE AND FALL OF MANAGEMENT
ACCOUNTING” by H. Thomas Johnson and Robert S. Kaplan,
Harvard Business School Press, Boston, MA, 1987
Diffusion of Management Accounting

Strategic Management
Sustainable
Accounting
Management Accounting

Cost Accounting
Management Accounting

1950-1985 After 1990

Before 1950 2013
Profitability & Customer
Cost focus Economic,
Waste value &
Environmental
reduction Shareholder
and Social
value

1950-2013
Strategic Management Accounting practices
• Balance score card (BSC)
• Activity base costing(ABC)
• Activity base management (ABM)
• Value chain analysis
• Life cycle costing
• Target costing
• Customer profitability analysis
• Product profitability analysis
• BCG Matrix
• Porters generic strategy
• Porters 5 forces Analysis
 Management Accounting vs Cost Accounting
• The primary objective of management accounting is to • The main objective of cost accounting is to assist the
provide necessary information to the management in the management in cost control and decision-making.
process of its planning, controlling, and performance
evaluation, and decision-making.
• Management accounting uses both quantitative and • Cost accounting system uses quantitative cost data
qualitative data. It also uses those data that cannot be that can be measured in monitory terms.
measured in terms of money.
• Determination of cost and cost control are the primary
• Efficient and effective performance of a concern is the roles of cost accounting.
primary role of management accounting.
• Cost accounting is restricted to cost-related data.
• Management accounting uses financial accounting data as
well as cost accounting data. • Cost accounting reports are useful to the management
•
as well as the shareholders and creditors of a concern.
Management accounting prepares reports exclusively
meant for the management. • Provides historical and predictive information for
• Provides future cost-related decisions based on the future decision-making
historical cost information.
DIFFERENT COST FOR DIFFERENT
PURPOSES
• In management accounting, the principle that the management of
an organization is likely to need different information, and thus
different costs, for the various activities it carries out, especially
when making decisions. For example, when calculating the price of a
product on a cost-plus basis, management would need to ensure
that all costs, both fixed and variable, are charged to the product. On
the other hand, in determining whether or not additional units of a
product should be produced, only the variable costs would be
relevant to that decision.
Standard Costing and
Variance Analysis
Steps in Standard Costing
Record
actual cost

Set
standard Variance
cost Analysis
 Types of standards
• Ideal Standards:
These represents the level of performance attainable when prices for
material and labour are most favorable, when the highest output is
achieved with the best equipment and layout and when maximum
efficiency in utilization of resources results in maximum output with
minimum cost.
• Normal Standards: These are the standards that may be achieved
under normal operating conditions. The normal activity has been
defined as number of standard hours which will produce normal
efficiency sufficient goods to meet the average sales demand over a
term of years.
• Current Standard: These standards reflect the management’s
anticipation of what actual cost will be for the current period. These
are the costs which the business will incur if the anticipated prices
are paid for goods and services and the usage corresponds to that
believed to be necessary to produce the planned output
Analysis of Variance

Material Variance

Labor Variance

Overhead Variance
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)