Chapter 7

Cost Theory and Estimation

1.
2.
3.
4.
5.
6.
7.
8.

The Nature of the Costs

Short Run Cost Functions
Long Run Cost Curves
Plant Size and Economies of Scale
Minimizing Costs Internationally
Logistic or Supply Chain Management
Cost-Volume-Profit Analysis & Operating
Empirical Estimation of Cost Functions

Bab 7
Teori Biaya dan Perkiraan
1.
2.
3.
4.
5.
6.
7.
8.

Karakteristik Biaya
Fungsi Biaya Jangka Pendek
Kurva Biaya Jangka Panjang
Ukuran Pabrik dan Skala Ekonomis
Minimalisasi Biaya Secara Internasional
Manajemen Logistik atau Penawaraan Berantai
Analisa Biaya, Volume, Laba & Pelaksanaan
Perkiraan Empiris terhadap Fungsi Biaya

The Nature of Costs

Explicit Costs: actual expenditures to hire, rent, or purchase the inputs (w; rental
price of K, equipment, buildings; price of raw materials, semi finished products)
= Accounting Costs: explicit costs = purchased or rented inputs
Economic Costs: explicit + implicit costs
Implicit Costs: the value of inputs owned & used = they are not free (they can
be sold or rented out to other firms)
Alternative or Opportunity Costs: using a resource, giving up the next-best of
alternative use of the resource. Opp.costs > acc.costs
Relevant Costs Concept: economic and opportunity costs
Incremental Costs: the change in TC from implementing a particular
management decision (introducing a new product line, a new advertising
campaign)
Sunk Costs are Irrelevant: the costs that are not affected by decision. Sunk
cots = a cost that is forever lost after it has been paid fixed costs see: Baye
p.184.

7-1 Karakteristik Biaya

Explicit Costs: Pengeluaran aktual utk memperkerjakan, menyewa atau

membeli inputs (w; Harga sewa K, perlengkapan, bangunan; Harga bahan
baku, barang setengah jadi)
= Accounting Costs=explicit costs = inputs yang dibeli dan disewa
Economic Costs: Explicit + implicit cots harus dipertimbangkan
Implicit Costs: nilai inputs yg dimiliki & digunakan = inputs ini tidak gratis (
dapat dijual dan disewakan ke perusahaan lain)
Alternative or Opportunity Costs: penggunaan sumberdaya dengan
mengorbankan alternatif terbaik dari menggunakan sumberdaya tersebut..
Opp.costs harus dibedakan dengan acc.costs
Relevant Costs Concept = Economic and opportunity costs
Incremental Costs: perobahan TC karena menerapkan keputusan
manajemen tertentu (memperkenalkan product baru, kampanye iklan baru
Sunk Costs/biaya terbenam=biaya tdk relevant: biaya yang tidak
dipengaruhi oleh keputusan. Lihat hal 299. harga input turun

Opportunity costs
Example: Costs of Education: The opportunity costs
is much higher then costs of tuition fee and books; it
also includes the amount of money you would earn
had you decided to work rather than go to school.
Opp.costs: the costs of the explicit and implicit
resources that are forgone when a decision is made.
Opp.costs of producing a good or service generally is
higher than accounting costs because it includes both
the dollar value of costs (explicit costs) and any
implicit costs.

Biaya Oportunitas
Contoh: Biaya Pendidikan: Opportunity costs lebih
tinggi dari biaya pendidikan dan buku karena
termasuk sejumlah uang yang seharusnya diterima
jika anda bekerja karena tidak melanjutkan sekolah.
Opp.costs: seluruh biaya explicit dan implicit yang
hilang jika suatu keputusan dibuat :bekerja sekolah
Opp.costs dalam memproduksi suatu barang dan
jasa umumnya lebih tingg dari accounting costs
karena termasuk nilai dari biaya explicit dan implicit.

Opportunity Cost in the

Economy
Opportunity Cost of any action is the best
alternative forgone, i.e., the best thing that you
reject (the forgone alternative) is the cost of the
thing you choose.

The opportunity cost of an action is

the highest valued alternative forgone.
A relative price is the ratio of one price to
another. A price change means that the price
one a certain good changes relative to the price
of other good.

A relative price is an opportunity cost

Biaya Oportunitas di dalam

Ekonomi
Opportunity Cost dari suatu kegiatan adalah
alternatif terbaik yang hilang, yaitu: suatu yang
terbaik yang anda ditolak (alternatif yang
hilang) adalah biaya dari sesuatu yang anda pilih
(pekerjaan baru yg akan diambil).

The opportunity cost dari suatu

tindakan adalah nilai alternatif tertinggi
yang hilang (gaji yg diterima sekarang =
opportunity cost)
Suatu harga relatif adalah rasio dari suatu harga
terhadap harga lainnya. Suatu harga berobah
berarti bahwa harga dari suatu barang tertentu
berobah terhadap harga barang lain.

Suatu harga relatif = opportunity cost

Short-Run Cost Functions

Total Cost = TC = f(Q)
Total Fixed Cost = TFC
Total Variable Cost = TVC
TC = TFC + TVC
TFC: i of K, rental expendtr of plant & equipment, property tax, top mgt
salaries
TVC: raw materials, fuels, depreciation of used plant & equipmnt, labor
costs, axes

7-2 Fungsi Biaya Short-Run

Biaya Total = TC = f(Q)
Biaya Total Tetap = TFC
Biaya Total Tidak Tetap = TVC
TC = TFC + TVC
TFC: i modal, sewa pabrik, peralatan, pajak perusahaan, gaji manejer
TVC: bahan baku, BBM, depresiasi pabrik & alat, tenaga kerja.

Short-Run Cost Functions

Average Total Cost = ATC = TC/Q
Average Fixed Cost = AFC = TFC/Q
Average Variable Cost = AVC = TVC/Q
ATC = AFC + AVC
Marginal Cost = TC/Q = TVC/Q
since d(TFC)/dQ = 0

Fungsi Biaya Jangka Pendek

Biaya Total Rata-rata = ATC = TC/Q
Biaya Tetap Rata-rata = AFC = TFC/Q
Biaya Tdk Tetap Rata-rata = AVC = TVC/Q
ATC = AFC + AVC
Biaya Marginal = TC/Q = TVC/Q
dimana d(TFC)/dQ = 0 karena d(TFC) = 0

Short-Run Cost Functions

Q
0
1
2
3
4
5

TFC
$60
60
60
60
60
60

TVC
$0
20
30
45
80
135

TC
$60
80
90
105
140
195

AFC
$60
30
20
15
12

AVC
$20
15
15
20
27

MC = TC/Q = TVC/Q

ATC
$80
45
35
35
39

MC
$20
10
15
35
55

Short Run and Long

Run
Short Run:
is a period of time in which the quantity of at least
one input is fixed (fixed input) and the quantities of
other inputs can be varied (variable inputs)
Long Run:
is a period of time in which the quantities of all
inputs can be varied

Short Run dan Long Run

Jangka Pendek:
adalah suatu periode waktu dimana paling tidak
jumlah dari satu inputnya tetap (input tetap) dan
jumlah inputs yg lainnya dapat berobah (variable
inputs)
Jangka Panjang:
adalah periode waktu dimana jumlah dari seluruh
inputs dapat berobah.

Short-Run Cost Functions

Average Variable Cost
w
AVC = TVC/Q = wL/Q = Q/L= w/APL
Marginal Cost
MC = TC/Q = TVC/Q
w(L)
w
= (wL)/Q = Q
=
Q/L
See: Figure 7-1

= w/MPL

p. 278

Fungsi Biaya Short-Run

Biaya Tidak Tetap Rata-rata
w
AVC = TVC/Q = wL/Q = Q/L= w/APL
Biaya Marginal
MC = TC/Q = TVC/Q
w(L)
w
= (wL)/Q = Q
=
Q/L
See: Figure 7-1

= w/MPL

p. 278

Figure 7-1

MC = ATC

p.277
= $60

U-shape of ATC, AVC, MC

Figure 7-1

MC = ATC

p.277
Biaya
= $60
Tetap

Total Biaya
Tdk Tetap

Bentuk U dari ATC, AVC, MC

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Slide 19

Long-Run Cost Curves

Long-Run Total Cost = LTC = f(Q)
Long-Run Average Cost = LAC = LTC/Q
Long-Run Marginal Cost = LMC = LTC/Q

7-3 Kurva Biaya Long-Run

Biaya Total Long-Run = LTC = f(Q)
Biaya Rata-rata Long-Run = LAC = LTC/Q
Biaya Marginal Long-Run = LMC = LTC/Q
Lihat Figure 7-3:
Pada ttk A utk memproduksi 1Q digunakan 4L dan
4K jika w = $10 dan rental price of K = r = $10 maka
TC utk memproduksi 1Q = 4L($10) + 4K($10) = $80

Figure 7-3. Derivation of Long-Run Cost Curves

p.280

TC = wL + rK = 10x4 + 10x4

w = $10
r = $10

LAC = LTC/Q

Gambar 7-3. Pembentukan Kurva Long-Run

p.280

TC = wL + rK = 10x4 + 10x4

W =upah = $10
r =bunga= $10

LAC = LTC/Q

Relationship Between Long-Run and

Short-Run Average Cost Curves
Figure 7-4

p. 283

Only 4 scales of plants

Assumption: the firm can build

a very large or infinite number of plants
in the long run. to minimize cost

7-4 Hubungan Antara Kurva Biaya

Rata-rata Long-Run dan Short-Run
Figure 7-4

p. 283

Hanya 4 skala pabrik

Assumption:
the firm dapat
can build
Asumsi: perusahaan
membangun
a
very large
or yang
infinite
number
of plants
sebuah
pabrik
sgt
besar atau
in the long
run.
jumlah
yg tdk
terbatas dalam jangka
panjang. untuk menekan biaya

Possible Shapes of
the LAC Curve

p. 287

Figure 7-6

Electricity generation
p. 285

In the case of
natural monopolies

Kemungkinan Bentuk dari

Kurva LAC

p. 287

Figure 7-6

Pembangkit Listrik
p. 285

Kasus Monopoli
umum

Semakin besar skala usaha biaya akan semakin rendah sebesar apa skalanya ???

Figure 7-7

Learning Curves

p. 289

Average Cost of Unit Q = C = aQb

Estimation Form: log C = log a + b Log Q
b = the slope of the learning curve
More efficient as they gain
production experience

log C = 3 0.3 log Q

Figure 7-7

7-5
Kurva Pembelajaran
Learning
Curves

p. 289

Biaya Rata-rata dari Q = C = aQ b

Bentuk perkiraan: log C = log a + b Log Q
b = slope kurva pembelajaran
Lebih efisien jika mereka
mendapat pengalaman
memproduksi
log C = 3 0.3 log Q

Minimizing Costs Internationally

Foreign Sourcing of Inputs:

a requirement to remain
competitive: US firms spend $100 billion on outsourcing, by doing so they cut
costs 10-15%. Ford 26 industrial sites/countries (201000 abroad n 181000 in US).
p.293

New International Economies of Scale:

integrating the
entire system of manufacturing around the world to take advantage of intl econ
of scale. p.294

Immigration of Skilled Labor:

National Science Foundation

(NSF) predicted a hortage of 675.000 scientists & engineers in US. Hospitals?;
Math & comp science? p.294/5

Brain Drain: a number of skilled L go abroad. Singapore with intl

manpower program. Brain gain in India

7-6 Minimalisasi Biaya Secara

Internasional
Sumber Inputs Asing: suatu persyaratan utk tetap mempunyai
daya saing: US firms mengeluarkan $100 billion thd outsourcing, dg melakukan
itu mereka dapat menekan biaya 10-15%. 26 lokasi industri Ford (201000
abroad n 181000 in US). p.293

Skala Ekonomi Internasional Baru:

integrasi seluruh
system manufaktur di seluruh dunia utk mendapat manfaat dari skala ekonomi
internasional. pusat produksi pd negara tertentu p.294

Imigrasi Tenagakerja Terdidik:

National Science Foundation

(NSF) memperkirakan kekurangan 675.000 ilmuan & insinyur di US. Rumah
Sakit?; Math & comp science? p.294/5

Pelarian Tanaga Ahli: sejumlah TK terampil pergi ke lN. Singapore

dg program intl manpower . Brain gain di India & China

Logistics or Supply Chain

Management
Merges and integrates functions in
Purchasing
Transportation
Rather than dealing with each of
them separately at division levels
Warehousing
A way of reducing costs: increasing
efficiency & profitability
Distribution
Customer Services

Source of competitive advantage: a trend

toward globalization of production n distribution in
todays world

Logistics
or Supply
Chain
7-7
Manajemen
Logistik
atau
Management
Penawaran
Berantai
Penggabungan & integrasi fungsi dalam
Pembelian
Transportasi
Rather
than
dealing with
each
of terDari
pada
dilakukan
sendiri
secara
them separately
at division
levels devisi

pisah
diantara mereka
pd tingkat
Pergudangan
A way
of reducing
increasing

Penurun
biaya :costs:
Peningkatan
efficiency
& dan
profitability
Distribusi
efisiensi
keuntungan
Pelayanan Pelanggan

Sumber dari Keuntungan Komperatif:

suatu kecendrungan globalisasi produksi dan distribusi
di dunia saat ini

 Reasons for the growth of logistics

Advances in computer technology
Decreased cost of logistical problem solving

Growth of just-in-time inventory

management
Increased need to monitor and manage input
and output flows

Globalization of production and distribution

Increased complexity of input and output flows

 Alasan Berkembangnya Manajemen

Logistik
Majunya teknologi computer
Berkurangnya biaya pemecahan masalah
logistik

Berkembangnya manajemen penyediaan

tepat waktu
Meningkatnya kebutuhan memonitor dan
mengelola arus input dan output

Globalisasi produksi dan distribusi

Meningkatnya Keruwetan arus dari input and
output

Cost-Volume-Profit Analysis
or Breakeven (BE) Analysis

p. 296

The relationship among TR, TC, Total profits at various levels of output

Total Revenue = TR = (P)(Q)

Total Cost = TC = TFC + (AVC)(Q)
Breakeven (BE) Volume TR = TC
(P)(Q) = TFC + (AVC)(Q)
(P)(Q) - (AVC)(Q) = TFC Q (P AVC) = TFC

QBE = TFC/(P - AVC)

7-8
Analisa
Biaya-Volume-Laba
Cost-Volume-Profit Analysis
p. 296
or Breakeven (BE) Analysis
atau Analisa Titik Impas (BE)
Hubungan antara TR, TC, Total Laba pd setiap tingkat produksi
Penerimaan Total = TR = (P)(Q)
Total Cost = TC = TFC + (AVC)(Q)
Titik Impas (BE) Volume TR = TC
(P)(Q) = TFC + (AVC)(Q)
(P)(Q) - (AVC)(Q) = TFC Q (P AVC) = TFC

QBE = TFC/(P - AVC)

Linear
Linear Cost
Cost -Volume-Volume- Profit
Profit Chart
Chart

Figure 8.12

Grafik
Linear
Biaya,
Cost
Volume
Laba
Linear
Grafik
Linear
Biaya,
Cost -Volume-VolumeVolume &
&Profit
Profit
LabaChart
Chart
Linear

Keuntungan bersih

Titik Impas
Biaya variabel

Ke

i an
g
ru

Biaya Tetap

Jumlah diproduksi dan dijual dlm waktu tertentu (000)

Linear Cost-Volume-Profit or
Figure 7-8
Breakeven Chart
p. 298
QBE = TFC/(P - AVC)
= 200/(10 5) = 40

TC

P = $10
TFC = $200
B

TC Decreased
TC TC
B B

AVC = $5
QBE = 40 units
TR = TC = $400

Figure 7-8

Linear Cost-Volume-Profit atau

Grafik Titik Impas
p. 298

QBE = TFC/(P - AVC)

= 200/(10 5) = 40

TC

P = $10
TFC = $200
B

TC Decreased
turun
TC TC
B B

AVC = $5
QBE = 40 units
TR = TC = $400

Breakeven analysis to determine the Target Output

(QT) at which a Target Profit (T ) can be achieved.

TFC + T
P - AVC

QT =
=

p.299

$200 + $100 = 60 units

$10 - $5

= TR TC = 60x$10 $200 60x$5 = $100

Total Cost = TC = TFC + (AVC)(Q)
= $200 + $5 x 60 = $500

Analisis
Breakeven
Titik
analysis
Impas utk
to determine
menentukan
theTarget
TargetOutput
Output
(Q
(Q
T)T)
pada
at which
saat a
manaTarget
Target Profit
Profit
(T )(
can
T ) dapat
be achieved.
dicapai

TFC + T
P - AVC

QT =
=

p.299

Target keuntungan = $100

$200 + $100 = 60 units

$10 - $5

= TR TC = 60x$10 $200 60x$5 = $100

Total Cost = TC = TFC + (AVC)(Q)
= $200 + $5 x 60 = $500

Operating Leverage
Operating Leverage = TFC/TVC
The higher is this ratio = more leveraged
(semakin tinggi tuasan) the firm is said to be
a higher overhead costs & QBE increases

Degree of Operating Leverage = DOL

elasticiy

%
Q( P AVC )
DOL

%Q Q( P AVC ) TFC

p.301

DOL = the sensitivity of the firms total profits to a change

in its output (Q) = sales elasticity of profit

Operating
Tuasan Leverage
Operasi
Operating Leverage = TFC/TVC
Semakin tinggi rasio ini = semakin tinggi
tuasan, perusahaan dikatakan menjadi
mempunyai biaya tetap yg tinggi & QBE
meningkat

Degree
of Operating
Leverage
= DOL
Derajat
Tuasan Operasi
= DOL
elastisitas

%
Q( P AVC )
DOL

%Q Q( P AVC ) TFC

p.301

DOL = sensitifitas laba total perusahaan terhadap perobahan

produksinya (Q) = elastisitas penjualan dari laba

Operating Leverage
Figure 7-9

p. 301

AVC = $5 AVC = $3.33

QBE will rise to 45
DOL: 3 4
p. 302

More highly leveraged

TC has a higher DOL than TC

therefore a higher QBE
leveraged
45 or K intensive
DOL increases: the firm becomes40
more

TUASAN OPERASI
Figure 7-9

p. 301

AVC = $5 AVC = $3.33

QBE will rise to 45
DOL: 3 4
p. 302

Tuasan lebih tinggi

TC has
a higher DOL yg
than
TC
mempunyai
tinggi

a higher
QBE QBE
daritherefore
TC lebih
tingginya
leveraged
45 or K intensive
DOL increases: the firm becomes40
more
Q dari 40 45

Empirical Estimation
Data Collection Issues
Opportunity Costs Must be Extracted from
Accounting Cost Data
Costs Must be Apportioned Among Products
Costs Must be Matched to Output Over Time
Costs Must be Corrected for Inflation
Short run cost function: C = f(Q, X1, X2, .., Xn)
Q = output; X1 = Costs of fuel/ Costs of material,
X2 = quality of inputs; X3 = technology used;
X4; weather conditions

p.304

7-9 Estimasi Empiris:

Pengumpulan Data
Opportunity Costs harus dikeluarkan dari data
Accounting Cost
Costs terbagi secara adil diantara Produk
Costs harus selalu cocok dengan Output
Costs harus dikoreksi dengan inflasi
Fungsi biaya Short run : C = f(Q, X1, X2, .., Xn)
Q = output; X1 = Biaya BBM /biaya material,
X2 = mutu input; X3 = technology digunakan
X4; kondosi cuaca

p.304

Empirical Estimation
Functional Form for Short-Run Cost Functions
Theoretical Form

Linear Approximation

TVC aQ bQ 2 cQ 3

TVC a bQ

TVC
2
AVC
a bQ cQ
Q

a
AVC b
Q

MC a 2bQ 3cQ 2

MC b

Estimasi Empiris
Bentuk Fungsi Short-Run Cost
Bentuk Teoritis

Pendekatan Linear

TVC aQ bQ 2 cQ 3

TVC a bQ

TVC
2
AVC
a bQ cQ
Q

a
AVC b
Q

MC a 2bQ 3cQ 2

MC b

Figure 7-10

Empirical Estimation
Theoretical Form

Linear Approximation

S-shaped

U-shaped

AVC becomes quite flat,

approaching the value of b (MC)
p.306
L shaped

Figure 7-10

Perkiraan Empiris
Theoretical Form

Linear Approximation

S-shaped

U-shaped

AVC becomes
menjadi lebih
quitemendatar,
flat,
approaching
Mendekati nilai
the bvalue
(MC)of b (MC)
p.306
L shaped

Empirical Estimation
Long-Run Cost Curves
Cross-Sectional Regression Analysis
Engineering Method: uses knowledge of physical
relationship between inputs and output expressed by the
production function to determine optimal input combination :
Figure 7-3.

Survival Technique: if large n small firms coexist in the

same industry, in the LR scale economies must be constant or
nearly so leaving only large firms in the LR the presence
of significant economies of scale. p.309

Empirical
EstimasiEstimation
Empiris
Long-Run
Cost Curves
Kurva Long-Run
Cost

Cross-Sectional
Analysis
Analisa Regresi Regression
Cross-Section
Engineering
Method:
uses knowledge of physical
Metoda Rekayasa
: menggunakan
pengetahuan

relationship between inputs and output expressed by the

hubungan fisik antara inputs & output dijelaskan dengan fungsi
production function to determine optimal input combination :
produksi utk menentukan kombinasi input yang optimal : Figure
Figure 7-3.
7-3.
Survival
Technique:
if large n small firms coexist in the
Teknik Bertahan:
jika industri besar & kecil berada pada
same industry, in the LR scale economies must be constant or
industri yang sama, dalam jangka panjang skala ekonomi harus
nearly so leaving only large firms in the LR the presence
konstan atau mendekati konstan meninggalkan hanya
of significant economies of scale. p.309
perusahaan besar dlm jangka panjang akibat kehadiran
skala ekonomi yang besar. p.335

Figure 7-11

Empirical Estimation

Efficiency
of Operation in Estimating the LAC curve
Actual LAC versus empirically estimated LAC

Figure 7-11

Estimasi Empiris

Efisiensi
Operasi dalam Estimasi kurva LAC
LAC aktual lawan perkiraan empiris LAC

Review

Keuntungan Maksimum

Profit Maximization

p.248

= TR TC = P.Q wL rK

Q = f (K,L)

p. 270

= P. f (K,L) wL rK
d = Pdf
dL
dL

w = 0

(MPL)(MR) = MRPL = w
d = Pdf
dK
dK

r = 0

(MPK)(MR) = MRPK = r

P is constant P = MR

MPL

MPK

MPL

MPK

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

r
Slide 59

Maksimalisasi Laba

p.248

= TR TC = P.Q wL rK

Q = f (K,L)

p. 270

= P. f (K,L) wL rK
d = Pdf
dL
dL

w = 0

(MPL)(MR) = MRPL = w
d = Pdf
dK
dK

r = 0

(MPK)(MR) = MRPK = r

P tetap P = MR

MPL

MPK

MPL

MPK

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

r
Slide 60

Optimal Use of Labor

MVPL
TR = P.Q

MRPL = (MPL)(MR)

TR
MR =
Q

Maximum profits
Optimal amount of L

p. 236

Penggunaan
Tenaga
Kerja
Optimal Use of Labor
yang Optimal
MVPL
TR = P.Q

MRPL = (MPL)(MR)

TR
MR =
Q

Upah Minimum
masalah internal & eksternal

Maximum profits
Optimal amount of L

p. 236