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Chapter 1:

Introduction to
Managerial Accounting
Managerial Accounting:
The Cornerstone of Business Decisions,
4e

Learning Objectives
1. Explain the meaning of managerial accounting.
2. Explain the differences between managerial
accounting and financial accounting.
3. Identify and explain the current focus (fokus) of
managerial accounting.
4. Describe the role (peran) of managerial
accountants in an organization.
5. Explain the importance of ethical behavior (perilaku
etik) for managers and managerial accountants.
6. Identify three forms of certification (sertifikasi) (yang)
available to managerial accountants.

The Meaning of
Managerial Accounting

Managerial Accounting is the provision


(ketentuan) of accounting information for a
companys internal users.
Unlike financial accounting, managerial
accounting is not bound (tidak terikat) by (dengan) any
formal criteria (kriteria formal) such as generally
accepted accounting principles (prinsip akuntansi yang
berlaku secara umum) (GAAP).
Managerial accounting has three broad objectives
(tiga sifat yang luas):

Planning

The detailed formulation of action (tindakan)


to achieve (mencapai) a particular end
(ketentuan akhir) is the management activity
(aktivitas manajemen)called planning.

Example
Setting objectives
(tujuan pengaturan)

Improve
Quality

Identifying methods to
achieve those objectives

Supplier
Evaluation
Program

Controlling

The managerial activity of monitoring a


plans implementation and taking
corrective action as needed (mengambil tindakan
korektif yang diperlukan)is referred to as controlling.
Compare
Actual
Performa
nce

Expected
Performa
nce

Decision Making

The process of choosing among


(antara)competing alternatives is called
decision making.
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You Decide
What Constitutes Managerial Accounting
Information

Financial Accounting
2
and Managerial
Financial Accounting
is primarily
concerned
Accounting
with producing information for external users, including
(terutama)

investors, creditors, customers, suppliers,


government agencies, and labor unions (serikat buruh).
Financial accountings orientation is historical (secara historis)
and is used for investment decisions, stewardship
(penatalayanan) evaluation, monitoring activity, and
regulatory measures (aturan pengukuran).
Financial statements must conform (sesuai) to certain rules
(aturan-aturan) and conventions (konvensi) defined (ditetapkan) by
agencies like the Securities and Exchange Commission
(SEC), the Financial Accounting Standards Board (FASB),
and the International Accounting Standards Board (IASB).
(termasuk)

Financial
Accounting
2
and Managerial
Accounting (continued)
Managerial Accounting produces information for
internal users, such as managers, executives, and
workers.
Thus (dengan demikian), managerial accounting could
be properly (secara tepat) called internal
accounting, and financial accounting could be
called external accounting.
Specifically (secara khusus), managerial accounting
identifies, collects, measures, classifies, and
reports financial and nonfinancial information that
is useful (berguna) to internal users in planning,
controlling, and decision making.

Comparison of Financial
and Managerial Accounting
2

Financial
Accounting

Managerial
Accounting

Externally focused

Must follow externally


imposed (diberlakukan)
rules

Objective financial
information

Financial and

information; subjective
information possible
nonfinancial

Historical orientation
(orientasi secara historikal)

Information about the


firm (perusahaan) as a
whole (secara keseluruhan)

Internally focused
No mandatory
(wajib)rules

Emphasis

the future

(penekanan)

on

Internal evaluation and


decisions based on very
detailed information

Comparison
of
Financial
2
and Managerial Accounting
(continued)

The key point is flexibility


the accounting system should be
able to supply (memberikan) different
information for different purposes.

Current Focus (fokus saat ini) of


3
Managerial
Accounting
The business environment in which companies operate
has changed (telah berubah) dramatically (secara dramatis)
over (selama) the past several decades (beberapa dekade terakhir).
As a result, effective managerial accounting systems (sistem
akuntansi managemen yang efektive) also have changed in order
(dalam rangka) to provide information that helps improve
companies planning, control, and decision-making
activities.

Several important uses (kegunaan penting) of managerial


accounting resulting (yang dihasilkan) from these advances
(kemajuan) include: (1) new methods of estimating product and
service cost (biaya layanan) and profitability, (2) understanding
(memahami) customer orientation, (3) evaluating the business
from a cross (lintas)-functional perspective (perspektif), and (4)
providing information useful in improving total quality.
(beroperasi)

New Methods of Costing


Products and need
Services
Todays companies
focused
,
3

(perusahaan saat ini)

(difokuskan)

accurate information on the cost of the products and services


they produce (jasa yang mereka hasilkan).
Activity-based costing (ABC) is a more detailed approach to
determining the cost of goods and services.
ABC improves costing accuracy by emphasizing (menekankan)
the cost of the many activities or tasks (tugas) that must be
done to produce (menghasilkan) a product or offer a service.
Process-value analysis focuses (berfokus) on the way in which
companies create value for customers.
The objective (tujuannya) is to find ways to perform (melakukan)
necessary (yang diperlukan) activities more efficiently and to
eliminate (menghilangkan) those that do not create customer
value.

Customer Orientation

Customer value is a key focus


because firms can establish
(mendirikan) a competitive advantage
by creating better customer value
for the same (yang sama dengan) or
lower cost than competitors or
creating equivalent value for lower
cost than that of competitors.
Customer value is the
difference between what a
customer receives and what the
customer gives up when buying
a product or service.

3
Strategic
Positioning
Effective
cost information can
help the company identify
strategies that increase customer value. This is typically
done (hal ini biasanya dilakukan) through a couple (beberapa) of
general strategies:

Cost Leadership: The objective of the cost


leadership strategy is to provide the same or
better value to customers at a lower cost than
competitors.
Superior (unggulan) products through
differentiation: A differentiation strategy strives
(berupaya/ mencoba) to increase customer value by
providing something to customers not provided
by competitors.

Value Chain

(rantai nilai)

Successful pursuit (mengejar) of cost leadership


and/or differentiation strategies requires
(membutuhkan) an understanding (pemahaman) of a
firms value chain.
The value chain is the set (penyetingan) of activities
required to design, develop, produce, market, and
deliver products and services, as well as (serta)
provide (memberikan) support services to customers.

Cross-Functional
Perspective

In managing the value chain, a


managerial accountant must
understand and measure
many functions of the
business.
Contemporary approaches to
costing may include initial (awal)
design and engineering (teknik)
costs, as well as (serta)
manufacturing costs, and the
costs of distribution, sales, and
service.

Total Quality
3
Management
Continuous improvement

(perbaikan terus menerus)

is the

continual search (pencarian terus menerus) for ways (cara) to


increase the overall efficiency and productivity of activities
by reducing (dengan mengurangi) waste (limbah), increasing
quality, and managing costs.
Continuous improvement is fundamental (sesuatu yang mendasar) for
establishing (membangun) excellence (keunggulan).

A philosophy of total quality management, in which


manufacturers strive (berupaya) to create an environment
that will enable (memungkinkan) workers to manufacture (untuk
membuat) perfect (zero-defect (cacat)) products, has created a
demand for a managerial accounting system that provides
information about quality.

Total Quality
Management

(continued)

For example, many companies attempt (mencoba) to increase


organizational value by eliminating wasteful (limbah) activities
that exist throughout (sepanjang) the value chain.
This has led (menyebabkan) to a change in accounting, referred
(dirujuk) to as lean (ramping) accounting, which organizes
(mengorganisir) costs according (menurut) to the value chain and
collects both financial and nonfinancial information.
A more (lebih )recent (baru) charge (biaya) of managerial
accountants is to help carry out (membawa) the companys
enterprise(perusahaan) risk management (ERM) approach.
ERM is a formal way for managerial accountants to identify
and respond (menanggapi) to the most important threats and
business opportunities facing (menghadapi) the organization.

Time As A Competitive
Element

(waktu sebagai unsur kompetitive)

Time is a crucial (sangat penting) element in all phases (fase)


of the value chain. World-class (kelas dunia) firms reduce
time to market by compressing (mengecilkan) design,
implementation, and production cycles (siklus).
These firms deliver products or services quickly (sesegera)
by eliminating nonvalue-added time, which is time of
no value (tidak bernilai) to the customer (e.g., the time a
product spends on the loading (pemuatan truck) dock (tepi)).
Interestingly (menariknya), decreasing nonvalue-added
time appears to go hand in hand (dari tangan ke tangan) with
increasing quality.

Efficiency

Improving efficiency is also a vital (penting) concern


(perhatian).
Both financial and nonfinancial measures of
efficiency are needed.
Cost is a critical (kritis) measure of efficiency.
For these efficiency measures to be of value, costs
must be properly (tepat) defined, measured (terukur), and
assigned; furthermore (selanjutnya), production of output
must be related to (dengan) the inputs required (dibutuhkan),
and the overall financial effect of productivity
changes should be calculated.

The Role of the


Managerial Accountant

The role of managerial accountants in an organization is one of


support.
They assist (membantu) those individuals who are responsible for
carrying out an organizations basic objectives.
Positions that have (yang mempunyai) direct (langsung) responsibility for the
basic objectives of an organization are referred to as line positions.
Positions that are supportive in nature and have only indirect
responsibility for an organizations basic objectives are called staff
positions.
The controller supervises (mengawasi) all accounting functions and
reports directly to the general manager and chief (kepala) operating
officer.
In larger companies, the controller is separate from the treasury
(perbendaharaan) department. The treasurer is responsible for the
finance function.

5Managerial

Accounting
and Ethical Conduct

(kode etik)

The objective of profit maximization (memaksimalkan) should


be constrained (dibatasi) by the requirement (persyaratan) that
profits be achieved through legal and ethical means
(cara-cara).
Ethical behavior involves (melibatkan) choosing actions
that are right, proper(tepat), and just(hanya).
Behavior can be right or wrong; it can be proper or
improper; and the decisions we make can be fair (adil) or
unfair.
Companies in business for the long term (jangka panjang) find
that it pays to treat (mengobati) all of their constituents
(pemilih) with honesty (kejujuran) and loyalty(kesetiaan).

Company Codes of
Ethical Conduct

To promote ethical behavior by managers and employees,


organizations commonly establish (membangun) standards of
conduct referred to as Company Codes of Conduct.
A quick (singkat) review (ulasan) of various (berbagai) corporate
(perusahaan) codes (etik) of conduct (kode) shows some common
ground (kesamaan).
Important parts of corporate codes of conduct are
integrity, performance (pelaksanaan )of duties (tugas), and
compliance (sesuai) with the rule (aturan) of law. They also
uniformly(seragam) prohibit (melarang) the acceptance (penerimaan)
of kickbacks (suap) and improper gifts, insider trading
(pedagang), and misappropriation (penyalahgunaan) of corporate
information and assets.

5 Standards of Ethical Conduct for Managerial


Accountants

In addition (sebagai tambahan) to organizations establishing


(membangun) standards of conduct for their managers and
employees, professional associations also establish ethical
standards.
Both the American Institute of Certified Public Accountants
(AICPA) and the Institute of Management Accountants (IMA)
have established (menetapkan) ethical standards for accountants.
Professional accountants are bound (terikat) by these codes of
conduct (kode etik).
Perhaps (kemungkinan) the biggest challenge (tantangan) with
ethical dilemmas is that when they arise (timbul), employees
frequently (sering) do not realize (menyadari) (1) that such a
dilemma has arisen or (2) the correct (benar) action that
should be taken (diambil) to rectify (memperbaiki) the dilemma.

Certification

The accounting profession offers three major


(utama) forms (bentuk)of certification to managerial
accountants:
Certificate in Management Accounting
Certificate in Public Accounting
Certificate in Internal Auditing

Each certification offers particular (manfaat)


advantages to a managerial accountant.
All three certifications offer evidence (bukti) that
the holder (pemegang) has achieved (capai) a minimum
level of professional competence (kompetensi).

The Certified
6
Management Accountant
(CMA)Accounting is
The Certificate in Management
(bersertifikat)

designed to meet the specific needs of managerial


accountants.
Four areas are emphasized (ditekankan) in the qualifying
(kualifikasi)examination (ujian) for the CMA. They are:
economics, finance, and management;
financial accounting and reporting;
management reporting, analysis, and behavioral issues
(masalah); and
decision analysis and information systems

The parts of the CMA examination reflect (mencerminkan)


a more interdisciplinary ( interdisipliner) flavor (rasa).

The Certified Public


Accountant (CPA)

The Certificate in Public Accounting is the oldest and


most well-known certification in accounting.
The purpose of the certificate is to provide minimal
professional qualification for external auditors.
Only a Certified Public Accountant (CPA) is permitted
(diijinkan) (by law) to serve (berfungsi) as an external auditor.
CPAs must pass (lulus) a national examination and be
licensed (berlisensi) by the state (negara) in which they practice.
Although (meskipun) the Certificate in Public Accounting does
not have a managerial accounting orientation, many
managerial accountants also hold(memegang) this certificate.

6 The

Certified Internal
Auditor (CIA)

Internal auditing differs


(berbeda) from external
auditing and managerial
accounting, and many
internal auditors felt (merasa) a
need for a specialized (khusus)
certification.
The Certified Internal
Auditor (CIA) has passed
(lulus) a comprehensive (luas)
examination designed to
ensure (memastikan) technical
competence and has two
years experience.