[MEET 2] AKUNTANSI MANAJEMEN - KONSEP & PERILAKU BIAYA

Summary

In this video, Nilam Kemala explains key concepts in management accounting, focusing on cost behavior and classification. She covers topics such as the distinction between cost and expense, product vs. period costs, and direct vs. indirect costs. The video introduces the idea of different cost types based on their behavior (fixed, variable, and semi-variable) and their traceability to cost objects. It also compares activity-based versus functional-based management accounting, emphasizing how costs are traced and allocated in each system. Overall, the session provides foundational knowledge for understanding cost structures and their impact on financial reporting.

Takeaways

• 😀 Cost is the sacrifice or cash equivalent made to acquire goods or services that will provide future benefits, such as raw material inventory.
• 😀 Expense refers to costs that have expired and no longer provide future benefits, typically shown on the income statement, such as cost of goods sold (COGS).
• 😀 Objects of cost are activities or items that are assigned costs, some of which are easy to trace, while others are difficult.
• 😀 Different costs serve different purposes and are classified based on behavior, reusability, traceability, and organizational function.
• 😀 Fixed costs remain constant within relevant limits, such as the cost of renting machinery, while variable costs change with the level of activity, such as the cost of fertilizer.
• 😀 Semi-variable costs consist of both fixed and variable components, such as a salesperson's salary plus a commission for each sale.
• 😀 Direct costs are easily traceable to cost objects, while indirect costs cannot be directly attributed and require allocation.
• 😀 The allocation of indirect costs, like utility expenses for a building, is done by assuming a relationship between cost drivers and cost objects.
• 😀 Product costs, which include direct materials, direct labor, and overhead, are capitalized as inventory until sold, while period costs (such as marketing expenses) are expensed in the current period.
• 😀 Management accounting can be based on either function (costs assigned to functional units) or activity (costs assigned to activities that consume resources), influencing how costs are traced and allocated.

Q & A

What is the difference between cost (Kos) and expense (Biaya)?

Cost (Kos) refers to the resources sacrificed to acquire goods or services that will benefit the business in the future, and is recorded as an asset on the balance sheet. Expense (Biaya) refers to costs that have expired and no longer provide future benefits, and is recorded on the income statement.

Can you give an example of a cost recorded as an asset?

An example of a cost recorded as an asset is the purchase of raw materials, which are used in production. These raw materials are considered an asset until they are used to create products, after which they become an expense.

What are fixed costs, and how do they behave in relation to production changes?

Fixed costs remain constant regardless of production levels, within a relevant range. For example, the annual rent for a machine does not change even if the machine operates for fewer hours.

How do variable costs behave with changes in production?

Variable costs change in direct proportion to the level of production. For example, the cost of raw materials increases as more units of a product are produced.

What is an example of semi-variable costs?

An example of semi-variable costs is a salesperson’s salary, which includes a fixed monthly salary plus a bonus based on the number of products sold. The total cost varies based on the number of sales.

What is the difference between direct and indirect costs?

Direct costs are expenses that can be directly traced to a specific product, activity, or cost object. Indirect costs, on the other hand, cannot be directly traced to a single product and require allocation across multiple products or departments.

Why is it important to distinguish between product costs and period costs?

Distinguishing between product costs and period costs is crucial for accurate financial reporting. Product costs are capitalized as inventory and expensed when the product is sold, while period costs are expensed in the period they are incurred.

What is the concept of activity-based costing (ABC)?

Activity-based costing (ABC) allocates costs to specific activities that consume resources. It identifies the cost drivers (activities that cause costs) and assigns costs based on the activity levels, offering a more accurate cost allocation compared to traditional methods.

How does function-based accounting differ from activity-based accounting?

In function-based accounting, costs are allocated based on departmental or functional responsibilities, using cost tracing. In activity-based accounting, costs are allocated based on activities that consume resources, and cost drivers are used to identify the cause of costs.

What are some examples of product costs?

Product costs include direct materials, direct labor, and manufacturing overhead. These costs are assigned to products and included in inventory until the products are sold.