Master Cost Accounting Concepts and Techniques with FULL Kunci Jawaban Cost Accounting William K Carter
FULL Kunci Jawaban Cost Accounting William K Carter
Cost accounting is a branch of accounting that deals with the recording, classification, allocation, and analysis of costs for various purposes, such as planning, control, decision making, and performance evaluation. Cost accounting helps managers to understand how costs behave, how they affect profitability, and how they can be managed effectively.
FULL Kunci Jawaban Cost Accounting William K Carter
One of the most popular and comprehensive textbooks on cost accounting is Cost Accounting by William K Carter and Milton F Usry. This book was first published in 1972 and has been updated and revised several times since then. The latest edition is the fourteenth edition, which was published in 2008 by Dame/Thomson Learning.
This book provides a practical, real-world approach to cost accounting, including substantial coverage of recent developments. It provides the essential background for those who will use accounting information as well as those who will prepare it. It also emphasizes decision making and human behavioral considerations throughout the text.
The book consists of 22 chapters that cover various topics related to cost accounting. Here is a brief summary of each chapter:
Chapter 1: Cost Concepts and the Cost Accounting Information System
This chapter introduces the basic concepts of cost accounting, such as cost objects, cost drivers, direct and indirect costs, fixed and variable costs, opportunity costs, sunk costs, differential costs, etc. It also explains the functions and components of a cost accounting information system, such as source documents, journals, ledgers, reports, etc.
Chapter 2: Cost Behavior Analysis
This chapter discusses how costs change in response to changes in activity levels or other factors. It covers different methods of analyzing cost behavior, such as scatter diagrams, high-low method, regression analysis, learning curves, etc. It also introduces the concept of contribution margin and breakeven point.
Chapter 3: Cost Accumulation
This chapter explains how costs are accumulated for different purposes, such as inventory valuation, product costing, income determination, etc. It covers different methods of cost accumulation, such as actual costing, normal costing, standard costing, etc. It also discusses the advantages and disadvantages of each method.
Chapter 4: Job Order Costing
This chapter describes how costs are assigned to specific jobs or orders in a job order costing system. It covers the steps involved in job order costing, such as identifying cost objects, accumulating direct materials and direct labor costs, applying overhead costs using predetermined rates, recording journal entries, preparing job cost sheets, etc.
Chapter 5: Process Costing
This chapter describes how costs are assigned to products or services that are produced in a continuous or repetitive process in a process costing system. It covers the steps involved in process costing, such as identifying production departments, accumulating direct materials and direct labor costs, applying overhead costs using predetermined rates, recording journal entries, preparing production reports, calculating equivalent units, assigning costs to completed and work-in-process units, etc.
Chapter 6: Costing by Departments
This chapter explains how costs are allocated to different departments or responsibility centers within an organization. It covers different methods of allocating service department costs to production departments, such as direct method, step method, reciprocal method, etc. It also discusses the advantages and disadvantages of each method.
Chapter 7: Costing By-Products and Joint Products
This chapter explains how costs are allocated to products that are produced from a common input or process in a joint costing system. It covers different methods of allocating joint costs to joint products, such as physical measure method, sales value at split-off method, net realizable value method, constant gross margin percentage method, etc. It also discusses how to account for by-products that have low sales value compared to joint products.
Chapter 8: Planning and Control of Costs
This chapter discusses how managers use cost information for planning and control purposes. It covers different types of budgets, such as master budget, operating budget, financial budget, flexible budget, etc. It also explains how to prepare budgeted income statements and balance sheets.
Chapter 9: Just-In-Time and Backflushing
This chapter discusses how managers use just-in-time (JIT) systems to reduce inventory levels and improve efficiency and quality. It covers the features and benefits of JIT systems, such as pull production, kanban cards, cellular manufacturing, total quality management (TQM), etc. It also explains how to account for inventory and costs in a JIT system using backflush costing.
Chapter 10: Controlling and Accounting for Costs
This chapter discusses how managers use variance analysis to compare actual results with budgeted or standard results. It covers different types of variances, such as material price variance, material quantity variance, labor rate variance, labor efficiency variance, overhead spending variance, overhead efficiency variance, etc. It also explains how to calculate and interpret these variances.
Chapter 11: Planned, Actual, and Applied Overhead
This chapter discusses how managers use overhead rates to apply overhead costs to products or services. It covers different methods of calculating overhead rates, such as single plantwide rate method, multiple departmental rate method, activity-based costing (ABC) method, etc. It also explains how to account for underapplied or overapplied overhead at the end of the period.
Chapter 12: Departmentalization
This chapter discusses how managers use departmentalization to divide an organization into smaller units that have similar functions or objectives. It covers different types of departmentalization, such as functional departmentalization, product departmentalization, geographic departmentalization, customer departmentalization, etc. It also explains how to measure the performance of each department using financial and nonfinancial indicators.
Chapter 13: Budgeting and Standard Costs
This chapter discusses how managers use budgeting and standard costing to plan and control operations. It covers different types of budgets and standards and their advantages and disadvantages such as static budget and flexible budget zero-based budget and incremental budget ideal standard and attainable standard etc. It also explains how to prepare a master budget and a flexible budget and how to use them for variance analysis.
Chapter 14: PERT/Cost
This chapter discusses how managers use PERT/Cost (Program Evaluation Review Technique/Cost) to plan and control complex projects. It covers the steps involved in PERT/Cost such as identifying activities and their durations and dependencies drawing a network diagram calculating critical path and slack time estimating project cost Chapter 15: Setting Standards
This chapter discusses how managers use standards to specify the expected performance or cost of an activity or a product. It covers different types of standards, such as ideal standards, attainable standards, current standards, basic standards, etc. It also explains how to set standards for materials, labor, and overhead costs.
Chapter 16: Incorporating Standards into the Accounting Records
This chapter discusses how managers use standard costing to record and report costs based on predetermined standards. It covers the steps involved in standard costing, such as establishing standard costs for each input, recording actual costs and variances from standards, closing variances to income statement or inventory accounts, etc. It also explains how to account for changes in standard costs.
Chapter 17: Analysis of Costs and Profits
This chapter discusses how managers use cost-volume-profit (CVP) analysis to examine the relationship between costs, volume, and profits. It covers different concepts and techniques related to CVP analysis, such as contribution margin ratio, break-even point, target profit, margin of safety, operating leverage, etc. It also explains how to perform CVP analysis under different scenarios, such as multiple products, changes in sales mix, changes in fixed costs, etc.
Chapter 18: Planning for Capital Expenditures
This chapter discusses how managers use capital budgeting to evaluate and select long-term investment projects. It covers different methods of capital budgeting, such as payback period method, accounting rate of return method, net present value method, internal rate of return method, profitability index method, etc. It also explains how to compare and rank projects using these methods.
Chapter 19: Economic Evaluation of Capital Expenditures
This chapter discusses how managers use economic analysis to refine and improve the capital budgeting decisions. It covers different factors and issues that affect the economic evaluation of capital expenditures, such as inflation, taxes, depreciation, working capital changes, sensitivity analysis, risk analysis, etc. It also explains how to adjust the cash flows and discount rates for these factors and issues.
Chapter 20: Decision Making Under Uncertainty
This chapter discusses how managers use decision analysis to make optimal choices under conditions of uncertainty. It covers different tools and techniques for decision analysis, such as decision trees, expected value criterion, expected opportunity loss criterion, expected value of perfect information criterion, utility theory, etc. It also explains how to apply these tools and techniques to various types of decision problems.
Chapter 21: Marketing Expense and Profitability Analysis
This chapter discusses how managers use marketing expense and profitability analysis to measure and improve the effectiveness and efficiency of marketing activities. It covers different methods and models for marketing expense and profitability analysis, such as contribution margin analysis, breakeven analysis, return on marketing investment analysis, customer lifetime value analysis, customer profitability analysis, etc. It also explains how to allocate marketing expenses to products, customers, channels, regions, etc.
Chapter 22: Profit Performance Measurements
This chapter discusses how managers use profit performance measurements to evaluate and reward the performance of different segments or units within an organization. It covers different types of profit performance measurements, such as segment margin, contribution margin, gross margin, operating income, net income, return on investment (ROI), residual income (RI), economic value added (EVA), etc. It also explains how to calculate and interpret these measurements for different segments or units.
Key features of the book
The book has several features that make it a valuable resource for students and practitioners of cost accounting. Some of these features are:
Real-world examples and cases that illustrate the application of cost accounting concepts and techniques in various industries and situations.
Exercises and problems that provide opportunities for practice and review of the material covered in each chapter.
Appendices that provide additional information and details on selected topics, such as process costing with FIFO method, linear programming, etc.
Glossary that defines key terms and concepts used in the book.
Index that helps locate specific topics or items in the book.
In conclusion, Cost Accounting by William K Carter and Milton F Usry is a comprehensive and practical textbook that covers all aspects of cost accounting from basic concepts to advanced applications. It provides a solid foundation for those who want to learn or improve their knowledge and skills in cost accounting. It also helps prepare them for professional exams or certifications in accounting or management.
Frequently Asked Questions
What is the difference between cost accounting and financial accounting?
Cost accounting focuses on providing information for internal users such as managers for planning, control, decision making, and performance evaluation purposes. Financial accounting focuses on providing information for external users such as investors, creditors, regulators, etc. for reporting purposes.
What are the benefits of using standard costing?
Standard costing helps managers to plan and control costs by comparing actual results with predetermined standards. It also helps managers to identify and analyze variances from standards and take corrective actions if needed. Standard costing also simplifies the recording and reporting of costs by using standard rates instead of actual costs.
What are the limitations of using CVP analysis?
CVP analysis assumes that costs are linearly related to volume and can be classified into fixed and variable components. It also assumes that sales mix and unit selling prices are constant and that there are no capacity constraints or changes in inventory levels. These assumptions may not hold true in reality and may affect the accuracy and validity of CVP analysis results.
What are the advantages of using net present value method over other capital budgeting methods?
Net present value method considers the time value of money and reflects the present value of future cash flows of a project. It also considers all cash flows of a project not just those that occur within a certain period. It is consistent with the goal of maximizing shareholder wealth as it measures the net increase in wealth that a project generates.
What are some examples of nonfinancial indicators that can be used to measure segment performance?
Nonfinancial indicators are measures that reflect the quality or effectiveness of segment operations rather than their profitability. Some examples are customer satisfaction ratings customer retention rates market share product quality ratings employee turnover rates etc.