1. Cost Managment & Strat
Transcript of 1. Cost Managment & Strat
-
8/8/2019 1. Cost Managment & Strat
1/16
Estimasi dan Analisis BiayaA, Imam Istiyanto
Horngren, Datar, Foster ; Cost Accounting-AManagerial Emphasis; Prentice Hall
Blocher, Chen, Lin; Cost Management; Irwin,McGraw Hill
-
8/8/2019 1. Cost Managment & Strat
2/16
Outline
Pendahuluan
Accounting: Konsep, Proses, Laporan Keuangan
Konsep Biaya Analisis Profit Volume
Job Costing
Analisis Variance Activity Based Costing
Prosess Costing
-
8/8/2019 1. Cost Managment & Strat
3/16
Cost Management and Strategy: AnOverview
Chapter One
-
8/8/2019 1. Cost Managment & Strat
4/16
4
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
-
8/8/2019 1. Cost Managment & Strat
5/16
5
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
-
8/8/2019 1. Cost Managment & Strat
6/16
6
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
-
8/8/2019 1. Cost Managment & Strat
7/16
7
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)
-
8/8/2019 1. Cost Managment & Strat
8/16
8
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
-
8/8/2019 1. Cost Managment & Strat
9/16
9
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
-
8/8/2019 1. Cost Managment & Strat
10/16
10
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
-
8/8/2019 1. Cost Managment & Strat
11/16
11
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)
-
8/8/2019 1. Cost Managment & Strat
12/16
12
Types of Organizations
MerchandisersManufacturers
Service
firms
Government and
Not-for-profit
Wholesalers Retailers
-
8/8/2019 1. Cost Managment & Strat
13/16
13
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
-
8/8/2019 1. Cost Managment & Strat
14/16
14
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
Changes in the Contemporary Business
Environment (continued)
-
8/8/2019 1. Cost Managment & Strat
15/16
15
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
Changes in the Contemporary Business
Environment (continued)
-
8/8/2019 1. Cost Managment & Strat
16/16
16
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?