Teori Activity Based Costing ABC Akuntansi Manajemen

Anjar Safitri S.Pd. MSc. AWP

26 Nov 202011:19

Summary

TLDRThis video script discusses Activity-Based Costing (ABC) in management accounting. It explains how ABC offers a more accurate cost calculation compared to traditional costing methods by assigning costs to activities related to products. The script highlights the benefits of ABC, such as providing detailed cost information for decision-making and addressing issues like customer variety and global competition. It also touches on the challenges of implementing ABC, like the difficulty of cost allocation and the need for significant investment in time and resources. The script concludes with an example comparing traditional costing with ABC, emphasizing the accuracy and fairness of ABC in profit distribution across products.

Takeaways

📚 Activity-Based Costing (ABC) is a method for determining the cost of a product based on the activities involved in its production.
🔍 ABC is more accurate than traditional costing methods, providing a detailed breakdown of costs associated with specific activities.
🚀 The emergence of ABC addresses the inaccuracies found in traditional methods, such as the inability to differentiate costs between products like bread and tarts due to similar overhead costs.
🌟 ABC allows for the customization of products to meet diverse consumer demands, which is essential in a competitive global market.
💼 ABC is beneficial for companies looking to improve operational efficiency and make more informed decisions regarding product pricing and profitability.
⏱️ Implementing ABC requires significant time and resources, including the establishment of a dedicated team to develop and implement the system.
💡 ABC provides relevant cost information for decision-making, helping to identify the most profitable activities and optimize resource allocation.
📈 The method can be applied in manufacturing companies to accurately allocate overhead costs, which are often the most challenging to assign in traditional costing.
📊 ABC involves identifying activities, determining the costs associated with each activity, and then assigning these costs to products based on their consumption of activities.
🌐 ABC can reveal significant differences in product profitability when compared to traditional costing, leading to more accurate business strategies and potentially altering production focus.

Q & A

What is Activity-Based Costing (ABC)?
-Activity-Based Costing (ABC) is a costing method that determines the cost of a product based on the activities involved in its production, where each activity is then multiplied by its cost per activity.
How does ABC differ from traditional costing methods?
-ABC is more accurate than traditional methods as it allocates costs based on activities and their usage, rather than simply allocating costs evenly across all products as in traditional methods.
What are the benefits of using ABC?
-ABC provides more accurate and informative cost data, allows for better understanding of cost drivers, and offers relevant cost information for decision-making, leading to more effective and efficient cost management.
What are the limitations of implementing ABC?
-Determining cost allocation for each activity can be challenging, and it may ignore other cost analyses such as advertising and promotion. Additionally, implementing ABC requires significant investment in time and resources, including the need for a dedicated team.
Why is it important for a company to know the cost of a product?
-Knowing the cost of a product is essential for determining inventory value, setting selling prices, making financial reports, and deciding whether to continue or discontinue a product line.
What is a cost driver in the context of ABC?
-A cost driver in ABC is the activity that causes the use of resources and is then translated into cost. It is used to measure the overhead costs and to determine the actual costs incurred or to set budgetary costs.
How does ABC help in managing overhead costs?
-ABC allocates overhead costs based on activities, ensuring that products with higher activity usage bear more costs, leading to a more accurate reflection of the true costs associated with each product.
What are the steps involved in implementing ABC?
-The steps include identifying activities, determining costs associated with each activity, grouping activities into cost pools, and calculating the cost per activity or cost driver.
How does ABC impact product pricing and competitiveness?
-ABC can lead to more accurate product pricing by reflecting the true cost of production, which can enhance competitiveness by ensuring that products are priced effectively in the market.
Can you provide an example of how ABC might be applied in a manufacturing company?
-In a manufacturing company, ABC can be applied by identifying activities such as material handling, machine setup, and order processing. The costs associated with these activities are then allocated to products based on their usage, leading to a more accurate calculation of the total cost of each product.

Outlines

00:00

📈 Introduction to Activity-Based Costing (ABC)

The speaker, Safitri, introduces the concept of Activity-Based Costing (ABC) in management accounting. She explains that ABC is a method for determining the cost of a product based on the activities involved in its production. This method is more accurate than traditional costing methods like full costing or variable costing. ABC addresses issues in traditional methods, such as the inaccurate cost allocation for products with different activity levels. The speaker also discusses how ABC can help companies meet consumer demands for variety, improve competitiveness in the global market, and achieve sustainable growth and profitability.

05:02

💼 Benefits and Limitations of ABC

The speaker outlines the benefits of ABC, which include providing accurate and informative cost data, allowing for more precise cost allocation per activity, and offering relevant cost information for decision-making. However, she also mentions the limitations, such as the difficulty in determining cost allocation for each activity and the high cost of implementing ABC due to the need for specialized teams and resources. The speaker emphasizes the importance of understanding product costs for management, including for inventory valuation, financial reporting, pricing decisions, and making strategic decisions about business units or products.

10:05

🏭 Application of ABC in Manufacturing

The speaker discusses the application of ABC in manufacturing, where it is used to accurately allocate overhead costs. She explains that traditional costing methods may not accurately reflect the true costs of production due to arbitrary allocation of overheads. In contrast, ABC assigns costs based on activities, leading to a more precise calculation of product costs. The speaker provides an example of how a company might use ABC to analyze the costs of producing two different products, taking into account direct material costs, direct labor costs, and overhead costs driven by various activities. The example illustrates how ABC can lead to a more accurate understanding of the profitability of different products compared to traditional costing methods.

Mindmap

Keywords

💡Activity-Based Costing (ABC)

Activity-Based Costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by the products and services. This method provides a more accurate and detailed cost allocation compared to traditional costing methods. In the video, ABC is presented as a solution to the inaccuracies of traditional costing, allowing for a more precise calculation of product costs based on the activities that contribute to those costs.

💡Full Costing

Full Costing is a method of determining the cost of a product by including all fixed and variable costs associated with the production process. It is one of the traditional costing methods that ABC aims to improve upon. In the video, full costing is mentioned as a method that may not accurately reflect the true cost of producing different products, especially when there are variations in the activities required for different products.

💡Variable Costing

Variable Costing is a costing approach that assigns only the variable costs to products, excluding fixed costs. It is another traditional method that contrasts with ABC by focusing on the variable costs that change with production volume. The video script implies that variable costing might not fully capture the complexity of cost drivers in a production environment, which ABC addresses more effectively.

💡Cost Drivers

Cost Drivers are the activities or factors that cause costs to be incurred in an organization. In the context of ABC, identifying and measuring cost drivers is crucial for accurately allocating overhead costs to products. The video script uses the term to explain how costs are directly linked to specific activities, which is a key principle of ABC.

💡Overhead Costs

Overhead Costs are indirect costs that are not directly tied to the production of a specific product or service. In the video, overhead costs are discussed as a significant area where ABC can provide more accurate allocation compared to traditional methods, which often lead to a less precise distribution of these costs.

💡Product Cost

Product Cost refers to the total cost of producing a single unit of a product. The video emphasizes the importance of accurately calculating product costs, which ABC is designed to do by linking costs directly to the activities involved in production. This is contrasted with traditional methods that may not reflect the true cost of production accurately.

💡Activity-Based Management (ABM)

Activity-Based Management is an extension of ABC that uses the information gathered from ABC to make strategic decisions and improve business processes. While the video script primarily focuses on ABC, ABM is mentioned as a newer approach that builds on the detailed cost information provided by ABC to enhance overall management and decision-making.

💡Cost Allocation

Cost Allocation is the process of distributing costs to products or services in a way that reflects their consumption of resources. The video explains how ABC improves cost allocation by linking costs directly to the activities that drive them, resulting in a more accurate and fair distribution of costs.

💡Competitive Advantage

Competitive Advantage refers to the attributes that enable a company to outperform its competitors in the market. The video script mentions that by using ABC, companies can better understand their costs and potentially achieve a competitive advantage by producing more efficiently and offering products at competitive prices.

💡Customer Satisfaction

Customer Satisfaction is a measure of how well a company's products and services meet or exceed customer expectations. The video implies that by accurately understanding costs through ABC, companies can better meet customer needs and preferences, leading to higher satisfaction levels.

💡Sustainability and Growth

Sustainability and Growth refer to a company's ability to continue operating and expanding over the long term. The video script suggests that ABC can contribute to a company's sustainability and growth by providing the accurate cost information needed to make informed decisions about production, pricing, and resource allocation.

Highlights

Introduction to Activity Based Costing (ABC) in management accounting and its significance in calculating product costs.

Comparison between ABC and traditional costing methods like full costing and variable costing.

The emergence of ABC due to inaccuracies in traditional costing methods, exemplified by the cost differences between buns and tarts.

How ABC addresses the needs of consumers with unlimited and varied preferences.

The importance of ABC in meeting global competition by allowing for product variation and competitive pricing.

The role of ABC in ensuring company sustainability, growth, and profitability, which traditional methods fail to achieve.

Background on ABC as part of management change, aiming for continuous business improvement.

Definition of ABC as an approach to determine product costs based on activities and resources used.

Benefits of ABC include providing accurate and informative cost data, and identifying costs for decision-making.

Limitations of ABC such as the difficulty in allocating costs to activities and the high implementation costs.

Purposes of ABC in a company, including inventory valuation, profit calculation, and financial reporting.

Explanation of cost drivers and how they measure the consumption of resources and overhead costs in ABC.

Application of ABC in manufacturing companies to accurately allocate overhead costs based on activities.

Difference between traditional overhead allocation and ABC, with the latter being more accurate and activity-based.

The process of implementing ABC, starting with identifying activities, determining related costs, and grouping activities per product.

A case study comparing the profitability of two products using traditional and ABC methods, highlighting the differences in results.

Conclusion on the accuracy of ABC in providing cost information based on activities, as opposed to traditional allocation methods.

Closing remarks on the importance of understanding ABC for effective management accounting practices.