chapter 3 kelompok 1
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Akuntansi ManajemenTRANSCRIPT
Cost behaviour:
Analysis and Use
Anggota Kelompok
• Kanda Agung Kusuma (312334)• Dede Syahputra (315749)• Wahyu Rizki S (346445)• R Muhammad Fajri (346486)• Rahmat Iman P (352862)
Types of Cost behaviour Patterns
Summary of Variable and Fixed Cost Behavior
Cost In Total Per Unit
Variable Total variable cost is Variable cost per unit remainsproportional to the activity the same over wide ranges
level within the relevant range. of activity.
Fixed Total fixed cost remains the Fixed cost per unit goessame even when the activity down as activity level goes up.
level changes within therelevant range.
Total Variable Cost Example
Your total long distance telephone bill is based on how many minutes you talk.
Minutes Talked
To
tal L
on
g D
ista
nce
Tel
eph
on
e B
ill
Variable Cost Per Unit Example
Minutes Talked
Per
Min
ute
Tel
eph
on
e C
har
ge
The cost per minute talked is constant. For example, 10 pence per minute.
Total Fixed Cost Example
Your monthly basic telephone bill is probably fixed and does not change when you make more local calls.
Number of Local Calls
Mo
nth
ly B
asic
T
elep
ho
ne
Bill
Fixed Cost Per Unit Example
Number of Local Calls
Mo
nth
ly B
asic
Tel
eph
on
e B
ill p
er L
oca
l Cal
l
The fixed cost per local call decreases as more local calls are made.
Cost behaviour
MerchandisersCost of Goods Sold
ManufacturersDirect Material, Direct labour, and Variable
Manufacturing Overhead
Merchandisers and Manufacturers
Sales commissions and shipping costs
Service Organizations Supplies and travel
Examples of normally variable costs
Examples of normally fixed costs
Merchandisers, manufacturers, and service organizations
Real estate taxes, Insurance, Sales salariesDepreciation, Advertising
The Activity Base
Machinehours
Labourhours
Unitsproduced
Milesdriven
A measure of the event causing the incurrence of a variable cost – a cost driver
Step-Variable Costs
Activity
Co
st
Total cost remainsconstant within anarrow range of
activity.
Step Costs
Activity
Co
st
Total cost increases to a new higher cost for the
next higher range of activity.
The Linearity Assumption and the Relevant Range
Activity
To
tal
Co
st
Economist’sCurvilinear Cost
Function
Activity
To
tal
Co
st
Economist’sCurvilinear Cost
Function
Accountant’s Straight-Line Approximation (constant
unit variable cost)
The Linearity Assumption and the Relevant Range
Activity
To
tal
Co
st
RelevantRange
The Linearity Assumption and the Relevant Range
Accountant’s Straight-Line Approximation (constant
unit variable cost)
Economist’sCurvilinear Cost
Function
A straight line closely
approximates a curvilinear variable cost line within the
relevant range.
A straight line closely
approximates a curvilinear variable cost line within the
relevant range.
Types of Fixed Costs
Fixed Costs
DiscretionaryMay be altered in the short-term by current managerial decisions
CommittedLong-term, cannot be reduced in the short
term.
ExamplesDepreciation on Buildings and
Equipment
ExamplesAdvertising and Research and Development
Trend Toward Fixed Costs
Increased automation.
Increase in salaried knowledge workers who are difficult to train
and replace. Implications
Managers are more “locked-in” with fewer decision alternatives.
Planning becomes more crucial because fixed costs are difficult to change with current operating decisions.
Implications
Managers are more “locked-in” with fewer decision alternatives.
Planning becomes more crucial because fixed costs are difficult to change with current operating decisions.
Example: Office space is available at a rental
rate of £30,000 per year in increments of 1,000 square metres. As the business grows more space is rented, increasing the total
cost.
Fixed Costs and Relevant Range
Continue
Ren
t C
ost
in
T
ho
usa
nd
s o
f p
ou
nd
s
0 1,000 2,000 3,000 Rented Area (Square metres)
0
30
60
Fixed Costs and Relevant Range
90
Relevant
Range
Total cost doesn’t change for a wide range of activity,
and then jumps to a new higher cost for
the next higher range of activity.
A semi-variable cost
has both fixed and variablecomponents.
Semi-variable Costs (also called mixed cost)
Consider thefollowing electric utility example.
Fixed Monthly
Utility Charge
Variable
Utility Charge
Activity (Kilowatt Hours)
To
tal
Uti
lity
Co
stMixed Costs
X
Y
Total mixed cost
Total mixed cost Y
= a + bX
Fixed Monthly
Utility Charge
Variable
Utility Charge
Activity (Kilowatt Hours)
To
tal
Uti
lity
Co
stMixed Costs
X
Y
The total mixed cost line can be expressed as an equation: Y = a + bX
Where: Y = the total mixed cost
a = the total fixed cost (thevertical intercept of the line)
b = the variable cost per unit ofactivity (the slope of the line)
X = the level of activity
Fixed Monthly
Utility Charge
Variable
Utility Charge
Activity (Kilowatt Hours)
To
tal
Uti
lity
Co
st
Total mixed cost Y
= a + bX
Mixed Costs
bX
aX
Y
WiseCo recorded the following production activity and maintenance costs for two months:
Using these two levels of activity, compute: the variable cost per unit; the fixed cost; and then express the costs in equation form Y = a + bX.
The High-Low Method
Units Cost
High activity level 9,000 9,700£ Low activity level 5,000 6,100 Change 4,000 3,600£
Unit variable cost =Changein costChange in units
Units Cost
High activity level 9,000 9,700£ Low activity level 5,000 6,100 Change 4,000 3,600£
The High-Low Method
Units Cost
High activity level 9,000 9,700£ Low activity level 5,000 6,100 Change 4,000 3,600£
The High-Low Method
Unit variable cost = £3,600 ÷ 4,000 units = £0.90 per unit
Units Cost
High activity level 9,000 9,700£ Low activity level 5,000 6,100 Change 4,000 3,600£
The High-Low Method
Unit variable cost = £3,600 ÷ 4,000 units = £0.90 per unit Fixed cost = Total cost – Total variable cost
Fixed cost = £9,700 – (£0.90 per unit × 9,000 units)
Fixed cost = £9,700 – £8,100 = £1,600
Unit variable cost = £3,600 ÷ 4,000 units = £0.90 per unit Fixed cost = Total cost – Total variable cost
Fixed cost = £9,700 – (£0.90 per unit × 9,000 units)
Fixed cost = £9,700 – £8,100 = £1,600 Total cost = Fixed cost + Variable cost (Y = a + bX) Y = £1,600 + £0.90X
Units Cost
High activity level 9,000 9,700£ Low activity level 5,000 6,100 Change 4,000 3,600£
The High-Low Method
The Scattergraph Method
Plot the data points on a graph (total cost vs. activity).
0 1 2 3 4
*
To
tal
Co
st i
n1,
000’
s o
f p
ou
nd
s
10
20
0
***
**
**
*
*
Activity, 1,000’s of Units Produced
X
Y
The Scattergraph MethodDraw a line through the data points with about an
equal numbers of points above and below the line.
0 1 2 3 4
*
To
tal
Co
st i
n1,
000’
s o
f p
ou
nd
s
10
20
0
***
**
**
*
*
Activity, 1,000’s of Units Produced
X
Y
The Scattergraph Method
Estimated fixed cost = £10,000
0 1 2 3 4
*
To
tal
Co
st i
n1,
000’
s o
f p
ou
nd
s
10
20
0
***
**
**
*
*
Activity, 1,000’s of Units Produced
X
Y
The slope of this line is the variable unit cost. (Slope is the change in total cost
for a one unit change in activity).
The Scattergraph Method
Slope = Change in costChange in units
Horizontal distance is the change in activity.
0 1 2 3 4
*
To
tal
Co
st i
n1,
000’
s o
f p
ou
nd
s
10
20
0
***
**
**
*
*
Activity, 1,000’s of Units Produced
X
Y
Vertical distance
is the change in cost.
• Accountants and managers may use computer software to fit a regression line through the data points.
• The cost analysis objective is the same: Y = a + bx
Least-Squares Regression Method
Least-squares regression also provides a statistic, called
the adjusted R2, that is a measure of the goodness
of fit of the regression line to the data points.
Least-squares regression also provides a statistic, called
the adjusted R2, that is a measure of the goodness
of fit of the regression line to the data points.
0 1 2 3 4
To
tal
Co
st
10
20
0
Activity
****
**
****
Least-Squares Regression Method
R2 is the percentage of the variationin total cost explained by the activity.
R2 for this relationship is near100% since the data points are
very close to the regression line.X
Y
Let’s put our
knowledge of cost
behaviour to work
by preparing a
contribution format
profit statement.
The Contribution Format
The Contribution FormatTotal Unit
Sales Revenue 100,000£ 50£
Less: Variable costs 60,000 30
Contribution margin 40,000£ 20£
Less: Fixed costs 30,000
Net profit 10,000£
The contribution margin format emphasizes cost behaviour. Contribution margin covers fixed costs
and provides for profit.
The Contribution Format
Used primarily forexternal reporting.
Used primarily bymanagement.
Thank You
Source : McGraw-Hill. 2002. downloaded from http://www.slideshare.net/jhoniejhoa
n/cost-behavior-analysis
Pertanyaan1. Koefisien Determinasi.2. Mixed cost? Variabel cost aja?3. Metode terbaik?