Business Strategies

Business Strategies
Under a low-cost strategy , a business designs and produces products or services of acceptable quality at a cost lower than that of its competitors.
Wal-Mart
Southwest Airlines

Business Strategies
Under a differential strategy , a business designs and produces products or services that possess unique attributes or characteristics which customers are willing to pay a premium price.
Maytag
Tommy Hilfiger

Inputs
A value chain is the way a business adds value for its customers by processing inputs into product or service.
Business
Processes
Products or
Services
Customer
Value

Types of Businesses
Merchandising Business
Wal-Mart
Toys “R” Us
Circuit City
Lands’ End
Amazon.com
Product
General merchandise
Toys
Consumer electronics
Apparel
Internet books, music, video retailer

Karakteristik Operasi Perusahaan Dagang
Kustomer
Gudang Barang
Penjualan
Bagian Penjualan
Penjualan
Kos barang terjual
Sediaan, awal
Pembelian
Sediaan, akhir
Laba kotor
XXX
XXX
XXX
XXX
Biaya penjualan
Biaya administratif
Laba operasi
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Statemen laba-rugi
Bagian Administratif/Umum

Financial Statements for
Merchandising Companies
BALANCE SHEET INCOME STATEMENT
Inventoriable
Costs
Purchases of
Inventory plus
Freight-In
Inventory
Sales Revenue deduct when sales occur Cost of
Goods Sold equals Gross Margin deduct
Period
Costs
Operating
Expenses equals Operating Income

Types of Businesses
Manufacturing Business
Product
General Motors Cars, trucks, vans
Intel
Boeing
Computer chips
Jet aircraft
Nike
Coca-Cola
Sony
Athletic shoes and apparel
Beverages
Stereos and television

Karakteristik Operasi Perusahaan Manufaktur
Gudang Barang
Pembelian
Gudang bahan baku
Barang jadi
Penjualan
Bagian Penjualan
Statemen laba-rugi
Kos barang terjual
Biaya penjualan
Pabrik Bagian Administratif/Umum
Biaya administratif
Laporan kos produksi
Kos barang manufakturan

Financial Statements for
Manufacturing Companies
BALANCE SHEET
Inventoriable
Costs
INCOME STATEMENT
Materials
Inventory
Finished
Goods
Inventory
Sales Revenue deduct when sales occur Cost of
Goods Sold equals Gross Margin deduct
Work in
Process
Inventory
Period Operating
Costs Expenses equals Operating Income

Types of Businesses
Service Business
Disney
Delta Air Lines
Marriott Hotels
Merrill Lynch
Sprint
Product
Entertainment
Transportation
Hospitality and lodging
Financial advice
Telecommunication

Financial Statements for
Service Companies
• There is no inventory and thus no inventoriable costs.
• The income statement does not include cost of goods sold.
Revenues – Expenses = Operating income

Service, Merchandising, and
Manufacturing Companies
Service
• Provides intangible services, rather than tangible products
Merchandising
• resells products previously bought from suppliers

Service, Merchandising, and
Manufacturing Companies
Manufacturing Company:
• uses labor, plant, and equipment to convert raw materials into finished products
• Materials inventory
• Work in process inventory
• Finished goods inventory

Manufacturing Company Example
• Kendall Manufacturing Company:
• Beginning and ending work-in-process inventories were $20,000 and $18,000.
• Direct materials used were $70,000.
• Direct labor was $100,000.
• Manufacturing overhead incurred was $150,000.

Manufacturing Company Example
• What is the cost of goods manufactured?
Beginning work in process
Direct labor
Direct materials
Mfg. overhead
$100,000
70,000
150,000
Ending work in process
Cost of goods manufactured
$ 20,000
320,000
(18,000)
$322,000

Manufacturing Company Example
• Kendall Manufacturing Company’s beginning finished goods inventory was
$60,000 and its ending finished goods inventory was $55,000.
• How much is the cost of goods sold?

Manufacturing Company Example
Beg. finished goods inventory
+ Cost of goods manufactured
= Cost of goods available for sale
– Ending finished goods
= Cost of goods sold
$ 60,000
322,000
$382,000
55,000
$327,000

Manufacturing Company Example
• Kendall Manufacturing Company had sales of $627,000 for the period.
• How much is the gross margin?
Sales
– Cost of goods sold
= Gross margin
$627,000
327,000
$300,000

Manufacturing Company Example
• Kendall Manufacturing Company had operating expenses as follows:
• $80,000 Sales salaries
10,000 Delivery expense
30,000 Administrative expenses $120,000
Total
• What is Kendall’s operating income?

Manufacturing Company Example
Gross margin
– Operating expenses
= Operating income
$300,000
120,000
$180,000

Flow of Costs through a
Manufacturer’s Accounts
• Direct Materials
Inventory
• Beginning inventory
+ Purchases and freightin
= Direct materials available for use
– Ending inventory
= Direct materials used
• Work in Process
Inventory
• Beginning inventory
+ Direct materials used
+ Direct labor
+ Manufacturing overhead
= Total manufacturing costs to account for
– Ending inventory
= Cost of goods manufactured

Flow of Costs through a
Manufacturer’s Accounts
• Finished Goods Inventory
• Beginning inventory
+ Cost of goods manufactured
= Cost of goods available for sale
– Ending inventory
= Cost of goods sold

EXPENSE
COST
ASSET
EXPENSE

Managerial Cost Concepts
Manufacturing Costs
Manufacturing consists of activities to convert raw
materials into finished goods.
In contrast, a merchandising firm sells goods in the form in which they were bought.
Categories of manufacturing costs include:
LO 3 – Define the three classes of manufacturing costs.

Komponen Kos Produk
Overhead
Material (bahan baku)
Tenaga kerja langsung

Konsep kos sebagai bahan olah akuntansi
Aliran fisik
Penyimbolan elemen
Bahan baku
Pengukuran elemen untuk data dasar kos
K a s
Utang
Mesin
Tenaga kerja kos kos kos kos
Produk kos
Sistem informasi
Rp1.500.000
Rp750.000
Rp3.500.000
Rp2.500.000
Rp1.750.000
Rp7.500.000

Manufacturing Costs
Materials
Raw Materials
Basic materials used in manufacturing
Direct Materials
Raw materials that can be physically and directly associated with the finished product
LO 3 Define the three classes of manufacturing costs.

Manufacturing Costs
Materials
Indirect Materials
Raw materials that cannot be easily associated with the finished product
Not physically part of the finished product
or they are an insignificant part of finished product in terms of cost
Considered part of manufacturing overhead
LO 3 Define the three classes of manufacturing costs.

Manufacturing Costs
Labor
Direct Labor
Work of factory employees that can be physically and directly associated with converting raw materials into finished goods
Indirect Labor
Work of factory employees that has no physical association with the finished product or for which it is impractical to trace to the goods produced
LO 3 Define the three classes of manufacturing costs.

Manufacturing Costs
Manufacturing Overhead
Costs that are indirectly associated with manufacturing the product
Includes all manufacturing costs except direct materials and direct labor
LO 3 Define the three classes of manufacturing costs.

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
Work in Process
DM
Finished Goods
Cost of Goods Sold
Factory Overhead Wages Payable
Total
Wages
DM Direct materials used in production

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM
Finished Goods
Cost of Goods Sold
Wages Payable
Total
Wages
Factory Overhead
IM
IM Indirect materials used in production

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM
DL
Finished Goods
Cost of Goods Sold
Wages Payable
Total
Wages
DL
Factory Overhead
IM
DL Direct labor used in production

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM
DL
Finished Goods
Cost of Goods Sold
Wages Payable
Total
Wages
DL
IL
Factory Overhead
IM
IL
IL Indirect labor used in production

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM
DL
Finished Goods
Cost of Goods Sold
Wages Payable
Total
Wages
DL
IL
Factory Overhead
IM
IL
OFOH
OFOH Other factory overhead costs incurred during production

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM
DL
FOHA
Finished Goods
Cost of Goods Sold
Wages Payable
Total
Wages
DL
IL
Factory Overhead
IM FOHA
IL
OFOH
Based on predetermined overhead rate
FOHA Factory overhead applied to work in process

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM COGM
DL
FOHA
Finished Goods
COGM
Cost of Goods Sold
Wages Payable
Total
Wages
DL
IL
Factory Overhead
IM FOHA
IL
OFOH
COGM Cost of goods manufactured and transferred to finished goods

Flow of Manufacturing Costs
Materials
Materials
Purchased
DM
IM
Work in Process
DM COGM
DL
FOHA
Finished Goods
COGM SOLD
Cost of Goods Sold
SOLD
Wages Payable
Total
Wages
DL
IL
Factory Overhead
IM FOHA
IL
OFOH
SOLD
Finished goods sold

Review Question
Which of the following is not an element of manufacturing overhead?: a. Sales manager’s salary.
b. Plant manager’s salary. c. Factory repairman’s wages.
d. Product inspector’s salary.
LO 3 Define the three classes of manufacturing costs.

• Objek Pengeluaran
• Fungsi Pokok dalam Perusahaan
• Hubungan Biaya dengan Sesuatu yang Dibiayai
• Perilaku Biaya dengan Perubahan Volume

Dalam cara penggolongan ini, nama objek pengeluaran merupakan dasar penggolongan biaya.
Misalkan nama objek pengeluaran adalah
Bahan Bakar, maka semua pengeluaran yang berhubungan dengan bahan bakar disebut “ Biaya Bahan Bakar “

Dalam Perusahaan terdapat 3 fungsi pokok, yaitu Produksi,
Pemasaran dan Administrasi & Umum
Biaya Produksi merupakan biaya yang terjadi untuk mengolah bahan baku menjadi barang jadi
Biaya Pemasaran
Merupakan biaya yang terjadi untuk melaksanakan pemasaran
Biaya Administrasi & Umum
Merupakan biaya untuk mengkoordinasi kegiatan produksi & pemasaran

Klasifikasi Kos Fungsional
Bahan
Penolong
+
Pemasaran
Tenaga Kerja
Taklangsung
+
+
Utama
Overhead
Lainnya
=
Bahan Baku
+
Tenaga Kerja
Langsung
+
Overhead
=
Produksi
+
Administratif/Umum =
Perioda (non pemanufakturan)
Komersial
=
Operasi Total
Konversi

Biaya Produksi:
BB (langsung -tidak langsung)
BTK (langsung- tidak langsung)
BOP
Biaya Non Produksi:
Biaya pemasaran atau penjualan
Biaya administrasi

• Full Costing
Merupakan metode penentuan kos produksi yang memperhitungkan semua unsur biaya produksi ke dalam kos produksi ditambah biaya non produksi
Kos Non
Produksi
BBB + BTKL + BOP Fix + BOP Var
+
B. Adm Umum + B. Pemasaran
Kos
Produksi

• Variable Costing
Merupakan metode penentuan kos produksi yang hanya memperhitungkan biaya produksi yang berperilaku variabel ke dalam kos produksi
BBB
BTKL
BOP VAR
B. AD UM
VAR
B. MARK
VAR
BOP FIX
B. AD UM
FIX
B. MARK
FIX

• Biaya pemasaran atau penjualan semua biaya yang diperlukan untuk menangani pesanan konsumen dan memperoleh produk atau jasa untuk disampaikan kepada konsumen.
contoh : pengiklanan, pengiriman, perjalanan dalam rangka penjualan, komisi penjualan, gaji untuk bagian penjualan, biaya penyimpanan gudang
• Biaya administrasi pengeluaran eksekutif , organisasional dan klerikal yang berkaitan dengan manajemen umum organisasi.
contoh : gaji eksekutif, akuntan umum, kesekretariatan, humas

• Klasifikasi biaya untuk pembebanan Biaya ke objek biaya:
Biaya Langsung
Biaya Tidak Langsung

Biaya Langsung

, adalah biaya yang jumlah totalnya berubah sebanding dengan perubahan volume kegiatan
, adalah biaya yang berubah tidak sebanding dengan perubahan volume kegiatan. Pada biaya ini mengandung unsur biaya tetap dan biaya variabel

, adalah biaya yang jumlah totalnya tetap dalam kisar volume kegiatan tertentu
, adalah biaya yang tetap untuk tingkat volume kegiatan tertentu dan berubah dengan jumlah yang konstan pada volume kegiatan produksi tertentu

• Klasifikasi biaya untuk pengambilan keputusan:
Biaya diferensial
Biaya kesempatan
Biaya tertanam
• Biaya Diferensial /Inkremental-Dekremental:
Perbedaan biaya antara dua alternatif
• Konsep biaya marginal dan pendapatan marginal:
Biaya marginal: biaya yang digunakan untuk menghasilkan 1 unit lebih banyak
Pendapatan marginal: pendapatan yang diperoleh dari penjualan 1 unit lebih banyak

Biaya Kesempatan (Opurtunity cost): manfaat potensial yang akan hilang bila salah satu alternatif telah dipilih dari sejumlah alternatif yang tersedia.
Biaya Tertanam (sunk cost): biaya yang telah terjadi dan tidak dapat diubah oleh keputusan apapun yang dibuat saat ini ataupun masa yang akan datang.

Product Versus Period Costs
Product Costs
• What are product costs?
• They are the costs to produce (or purchase) tangible products intended for sale.

Product Versus Period Costs
Product Costs
Components: direct material cost, direct
labor cost, and manufacturing overhead
A necessary and integral part of producing the product
Recorded as inventory when incurred
Not an expense until the finished goods

Product Costs
• There are two types of product costs:
Full product costs
Inventoriable product costs

External Reporting
Inventoriable product costs
Period costs

Inventoriable Product Costs
• For external reporting, merchandisers’ inventoriable product costs include only costs that are incurred in the purchase of goods.
• Inventoriable costs are an asset.
• Period costs flow as expenses directly to the income statement.

Inventoriable Product Costs
• For external reporting, manufacturers’ inventoriable product costs include raw materials plus all other costs incurred in the manufacturing process.
• Inventoriable product costs are incurred only in the third element of the value chain.
• Costs incurred in other elements of the value chain are period costs.

Inventoriable Product Costs
Direct
Materials
Direct
Labor
Indirect
Labor
Indirect
Materials
Other
Manufacturing Overhead

Inventoriable Product Costs
Direct
Materials
Direct
Labor
Prime Costs = Direct Materials + Direct Labor

Product
Costs
Direct
Materials
Direct
Labor
The cost of materials that are an integral part of the product.
The cost of labor directly involved in converting material into the product.
Factory
Overhead
Manufacturing costs other than direct materials and direct labor.

Product Versus Period Costs
Period Costs
Matched with revenue of a specific time period and charged to expense as incurred
Non-manufacturing costs
Deducted from revenues in period incurred to determine net income
Includes all selling and administrative expenses
LO 4 Distinguish between product and period costs.

Product Versus Period Costs
LO 4 Distinguish between product costs and period costs .

EXAMPLES OF PERIOD COSTS
SELLING EXPENSES

Advertising expenses

Sales salaries expenses

Commission expenses

EXAMPLES OF PERIOD COSTS
ADMINISTATIVE EXPENSES

Office salaries expenses

Office supplies expenses

Depreciation expense— office buildings and office equipment

Goodwell Printers
Income Statement
For the Month Ended December 31, 2006
Sales
Cost of goods sold
Gross profit
Selling and admin. expenses:
Sales salaries expense
Office salaries expense
$2,000
1,500
Total selling and admin. expenses
Income from operations
$28,000
20,150
$ 7,850
3,500
$ 4,350

Cost Objects, Direct Costs, and Indirect Costs
• Cost objects are anything for which a separate measurement of costs is desired.
• Cost drivers are any factors that affect cost.

Cost Objects, Direct Costs, and Indirect Costs
• What are examples of cost objects?
– individual products
– alternative marketing strategies
– geographic segments of the business
– departments

Cost Objects, Direct Costs, and Indirect Costs
• What are direct costs?
• Direct costs are those costs that can be specifically traced to the cost object.
• What are indirect costs?
• Indirect costs are costs that cannot be specifically traced to the cost object.

Manufacturing Costs in Financial
Statements
Income Statement
The income statement for a manufacturer is similar to that of a merchandiser except for the cost of goods sold section.
LO 5 Explain the difference between a merchandising and a manufacturing income statement.

Isi Statemen Laba-Rugi
Penjualan
Potongan penjualan
Kembalian dan keringanan penjualan
Penjualan bersih
Kos barang terjual:
Sediaan barang, awal
Pembelian
Potongan pembelian
Kembalian dan keringanan
Pembelian bersih
Kos pengangkutan
Kos barang tersedia dijual
Sediaan barang, akhir
Laba kotor penjualan
Biaya operasi:
Biaya penjualan
Biaya administratif dan umum
Laba operasi
1.500
2.000
255.500
3.500
252.000
33.700
152.300
2.700
2.000
148.600
4.200
152.800
186.500
36.000
150.500
101.500
38.850
25.150
64.000
37.500

Cost of Goods Sold Components
Merchandiser versus Manufacturer
LO 5 Explain the difference between a merchandising and a manufacturing income statement.

Cost of Goods Sold Section of the Income Statement
LO 5 Explain the difference between a merchandising and a manufacturing income statement .

Determining the Cost of Goods Manufactured
Work in Process – partially completed units of product
Total Manufacturing Costs – sum of direct material costs, direct labor costs, and manufacturing overhead; all incurred in the current period
LO 6 Indicate how cost of goods manufactured is determined .

LO 6 Indicate how cost of goods manufactured is determined .

Contoh Isi Laporan Kos Produksi
Perusahaan Tegel Cap GAJAH
Lampiran A: Laporan Kos Produksi untuk tahun berakhir 31 Desember 2001
Sediaan tegel dalam proses, 1 Januari
Pemakaian semen dan pasir:
Sediaan semen dan pasir, 1 Januari
Pembelian semen dan pasir
Bahan baku tersedia diproses
Sediaan semen dan pasir, 31 Desember
Bahan baku yg dipakai
Tenaga kerja langsung
Overhead pabrik
Gaji pengawas produksi
Depresiasi bangungan-Pabrik
Depresiasi mesin cetak dan pres
Pemakaian bahan penolong
Listrik dan air
Asuransi-Pabrik
Kos produksi masuk proses
Sediaan tegel dalam proses, 31 Desember
Kos barang manufakturan
Rp 2.450.000
Rp 4.200.000
13.400.000
Rp17.600.000
3.800.000
13.800.000
7.490.000
Rp 2.140.000
850.000
1.500.000
840.000
357.000
152.000
235.000
6.074.000
Rp29.814.000
2.100.000
Rp27.714.000

Balance Sheet - Inventories
Merchandising Company
One category of inventory:
Merchandise Inventory
Manufacturing Company
May have three inventories:
Raw Materials
Work in Process
Finished Goods
LO 7 Explain the difference between a merchandising and a manufacturing balance sheet.

Balance Sheet - Inventories
LO 7 Explain the difference between a merchandising and a manufacturing balance sheet

Cost
Match Terms & Definitions
Opportunity
Cost
Expense
Cost Object
Direct Cost
Indirect Cost
The return that could not be realized from the best forgone alternative use of a resource
A cost charged against revenue
Costs not directly related to a cost object
Any item for which a manager wants to measure a cost
Costs directly related to a cost object
A sacrifice of resources

Review Question
Direct Materials are a:
Product Manufacturing Period
Cost Overhead Cost a. Yes Yes No b. Yes No No c. Yes Yes Yes d. No No No

Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials, direct labor, or manufacturing overhead.
______ a. Windshield
______ b. Engine

Identify whether each of the following costs should be classified as product costs or period costs.
____________ a. Manufacturing overhead
____________ b. Selling expenses

End of Week