The document defines cost accounting as measuring and reporting financial and non-financial information related to acquiring and using resources in an organization. It notes that cost accounting provides detailed cost data needed by management to control current operations and plan for the future. The roles of cost accounting include developing budgets, setting costing methods to control and reduce costs, determining inventory values, and calculating costs and profits. Cost accounting differs from financial accounting in that it focuses on segments of a business rather than the entire entity and provides information for management decisions rather than external reporting.

1. COST ACCOUNTING
(Akuntansi Biaya)
Diana Marlyna, M.S.Ak.
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Diana Marlyna M.S.Ak., 2021

2. The Concept
1. Definition of Cost Accounting
2. The Need for cost Accounting
3. Role of Cost Accounting
4. Cost Accounting VS Financial Accounting
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Diana Marlyna M.S.Ak., 2021

3. 1. Definition of Cost Accounting
”Cost accounting measure and reports
financial and non financial information
relating to the cost of aquirition or
utilizing recources in an organization.
Cost accounting includes those parts of
both management accounting and
financial accounting in with cost
information is collected or analyzed.”
(Horngren, et al, 2003)
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Diana Marlyna M.S.Ak., 2021

4. 1. Definition of Cost Accounting
According to Mulyadi, the definition of
Cost Accounting is the process of
recording, classification, summarizing,
and presentation for the cost of
manufacture and sale of product and
services with certain ways and
interpretation to it.
(Mulyadi, 2009)
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Diana Marlyna M.S.Ak., 2021

5. 1. Definition of Cost Accounting
One branch of accounting , as a
management tool to monitor and
record the transaction of costs
systematically, also presents cost
information in the form of cost
report.
(Supriyono, 2011)
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Diana Marlyna M.S.Ak., 2021

6. 2. The Need of Cost Accounting
• Cost accounting provides the detailed cost data that management
needs to control current operations and plan for the future.
• Companies must control costs in order to keep prices competitive.
• In today’s global environment, cost information is more crucial than
ever in remaining competitive.
(Vanderbeck, 2010)
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Diana Marlyna M.S.Ak., 2021

7. 3. The Role of Cost Accounting
1. Develop and implement the company's operating budget plan.
2. Set costing methods and procedures that ensure control and if
possible reduction of fees or charges and quality improvement.
3. Determine the value of the inventory in order to calculate costs and
set prices, the performance evaluation of a product, department or
division, and at any time check the inventory in physical form.
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Diana Marlyna M.S.Ak., 2021

8. 3. The Role of Cost Accounting
4. Calculate the cost and profit of the company for the accounting period,
annual or shorter period.
5. Choose the best alternative to increase revenue or decrease costs.
(Bustami dan Nurlela, 2006)
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Diana Marlyna M.S.Ak., 2021

9. 4. Cost Accounting VS Financial Accounting
Characteristics Financial Accounting Managerial Accounting
Users: • External Parties
• Managers
Managers
Focus: Entire business Segments of the business
Uses of Cost Information: Product costs for calculating cost
of goods sold and finished goods,
work in process, and raw
materials inventory using
historical costs and GAAP.
• Budgeting
• Special decisions such as make
or buy a component, keep or replace
a facility, and sell a product at
a special price.
• Nonfinancial information such as
defect rates, % of return products, and
on-time deliveries 9
Diana Marlyna M.S.Ak., 2021

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Diana Marlyna M.S.Ak., 2021