Sesi 2 Akuntansi Manajemen
Perilaku Biaya Aktivitas
Learning Objective
1. Define cost behavior for fixed, variable, & mixed costs.
2. Explain the role of the resource usage model in understanding cost
behavior.
3. Separate mixed costs into their fixed & variable components using
the high-low method, scatterplot method, and method of least
squares.
4. Evaluate the reliability of a cost equation.
5. Discuss the role of regression in assessing cost behavior.
6. Describe the use of managerial judgment in determining cost
behavior.
Questions To Think About
If the division reduces demand for If total cost of rework and # of
rework activity, will resource units reworked are known, is it
spending be reduced by the possible to determine how much is
same proportion? Is there a variable cost? How much is fixed
difference between resource cost? Is knowing variable- and
spending and resource usage? fixed-cost behavior important?
What role does management Can you think of reasons other
play in determining cost than those in the scenario that
behavior? make it important for managers
to understand cost behavior
1. Define cost behavior for fixed, variable, & mixed costs.
Study Case : Reddy Heaters
If Reddy Heaters produces twice as many heaters
as last year, will production costs double?
NO. Variable costs will double if production
doubles but fixed costs will not change.
1. Define cost behavior for fixed, variable, & mixed costs.
Cutting activity uses 2 inputs:
a. Cutting machine
• 1 machine can produce up to 240,000, 3-inch segments per year (fixed cost)
• 1 cutting machine costs $60,000 per year
b. Power to operate machine (variable cost)
• 1 segment uses 0.1 kilowatts at cost of $2.00 per kilowatt. Each segment costs
$0.20.
Please be noted that:
a. Fixed costs do not vary over the relevant range.
b. Variable costs vary in direct proportion to changes in output.
1. Define cost behavior for fixed, variable, & mixed costs.
What is the total variable
cost to produce 120,000
3-inch segments?
1. Define cost behavior for fixed, variable, & mixed costs.
MIXED COST: Definition
• Mixed costs have a variable and a fixed component.
• Reddy Heaters: sales people earn a $10,000 salary + $0.50 commission on
each heater sold.
Cost behavior.
Input:
Materials
Energy Activity Drivers
Activity
Activities
Output
Labor
Capital
Changes in
Input Cost Changes in
Output
Cost Behavior
2. Explain the role of the resource usage model in understanding
cost behavior.
• Flexible resources are resources acquired as used and needed.
Materials and energy are examples.
• Committed resources are supplied in advance of usage. Buying or
leasing a building is an example of this form of advance resource
acquisition.
Total committed cost
Fixed activity rate = Total capacity available
Variable activity rate = Total cost of flexible resources
Capacity used
2. Explain the role of the resource usage model in understanding cost
behavior.
• A step cost displays a constant level of cost for a range of output and
then jumps to a higher level of cost at some point.
Cost
$500
400
300
200
100
10 20 30 40 50
Activity Output (units)
2. Explain the role of the resource usage model in understanding cost
behavior.
• Three engineers hired at $50,000 each (3 • Available orders = Orders used + Orders
enginees = $150,000) unused
7,500 orders = 6,000 orders + 1,500
• Each engineer is capable of processing
orders
2,500 change orders
• The company could process as many as • Fixed engineering rate =
7,500 orders $150,000/7,500 = $20 per change order
• There were 6,000 orders processed
• Variable engineering rate =
• $90,000 was spent on supplies for the
$90,000/6,000 = $15 per change order
engineering activity
2. Explain the role of the resource usage model in understanding cost
behavior.
The relationship between resources supplied and resources used is expressed
by the following equation:
Cost of orders supplied = Cost of orders used + Cost of unused orders
= [($20 + $15) x 6,000] + ($20 x 1,500)
= $240,000
The $30,000 of excess engineering capacity means that a new product could
be introduced without increasing current spending on engineering.
2. Explain the role of the resource usage model in understanding cost
behavior.
The implication is to improve managerial control & decision making by
• Encouraging managers to pay more attention to controlling resource
usage, spending
• Providing information to control capacity efficiently
• Allowing managers to calculate change in resource supply, demand
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
Variable
Component
Fixed
Component
Note : The linearity assumption assumes that variable costs increase in direct proportion to the number
of units produced (or activity units used).
The High-Low Method
The Scatterplot Method
The Method of Least Squares
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
Methods for Separating Mixed Costs:
Y = a + bx
Total Total Variable
Number of
Cost Fixed Cost Cost per
Units
Unit
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
The High-Low Method
Variable rate = Change in cost / Change in output
= (High cost – Low cost) / (High output – Low output)
Fixed cost = Total cost for High (Low) point {Variable rate x High (Low) output}
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
The High-Low Method
Month Setup Costs Setup Hours
January $1,000 100
February 1,250 200
March 2,250 300
April 2,500 400
May 3,750 500
Step 1: Solve for variable cost (b)
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
The High-Low Method
Month Setup Costs Setup Hours
January $1,000 100
February 1,250 200
March 2,250 300
April 2,500 400
May 3,750 500
High Cost – Low Cost
b=
High Units – Low Units
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
The High-Low Method
Month Setup Costs Setup Hours
January $1,000 100
February 1,250 200
March 2,250 300
April 2,500 400
May 3,750 500
$3,750 – $1,000
b=
500 – 100
b = $6.875
3. Separate mixed costs into their fixed & variable components using the high-low
method, scatterplot method, and method of least squares.
The High-Low Method
Y = a + b (x) High
$3,750 = a + $6.875(500) End
$312.50 = a
Y = a + b (x)
$1,000 = a + $6.875(100) Low
$312.50 = a End
The cost formula using the high-low method is: Total cost = $312.50 ($6.875 x Setup hours)
Step 2: Using either the high cost or low cost, solve for the total fixed cost (a).
4. Evaluate the reliability of a cost equation.
The Scatterplot Method
Nonlinear Relationship
Activity
Cost
* *
*
*
*
0 Activity Output
Scatterplot is a method of determining the equation of a line by plotting the data on a graph.
4. Evaluate the reliability of a cost equation.
The Scatterplot Method
Presence of Outliers
Activity
Cost
*
*
*
Estimated
regression
*
line
*
*
Estimated
fixed cost
0 Activity Output
4. Evaluate the reliability of a cost equation.
How reliable is the cost equation Percentage of variability in dependent
developed by the least squares method?? variable explained by independent variable
Range: 0 – 1
Higher is better
R2, the coefficient of determination, and Square root of coefficient of determination
the coefficient of correlation will tell you Measures whether variables move in same
the goodness of fit of your cost (+) or opposite (-) directions
equation. Range: -1 - +1
5. Discuss the role of regression in assessing cost behavior.
Month Setup Costs Setup Hours
Jan 1,000 100
Feb 1,250 200
Mar 2,250 300
Apr 2,500 400
May 3,750 500
Spreadsheet Data for
Larson Company
Multiple regression uses 2 or more independent variables (variable costs) in addition to the y-intercept (fixed
cost) to explain the dependent variable.
5. Discuss the role of regression in assessing cost behavior.
Regression Output:
Constant 125
Std. Err of Y Est 299.304749934466
R Squared 0.944300518134715
No. of Observation 5
Degrees of Freedom 3
X Coefficient(s) 6.75
Std. Err of Coef. 0.9464847243
Regression Output for
Larson Company
5. Discuss the role of regression in assessing cost behavior.
The results give rise to the following equation:
Setup costs = $125 + ($6.75 x Setup hours)
R2 = .944, or 94.4 percent of the variation in setup costs is explained
by the number of setup hours variable.
5. Discuss the role of regression in assessing cost behavior.
Positive Correlation
r approaches +1
Machine Utilities Machine Utilities
Hours Costs Hours Costs
5. Discuss the role of regression in assessing cost behavior.
Negative Correlation
r approaches -1
Hours of Industrial Hours of Industrial
Safety Accidents Safety Accidents
Training Training
5. Discuss the role of regression in assessing cost behavior.
TC = b0 + ( b1X1) + (b2X2) + . . .
b0 = the fixed cost or intercept
b1 = the variable rate for the first independent variable
X1 = the first independent variable
b2 = the variable rate for the second independent variable
X2 = the second independent variable
5. Discuss the role of regression in assessing cost behavior.
Month Mhrs Summer Utilities Cost
Jan 1,340 0 $1,688
Feb 1,298 0 1,636
Mar 1,376 0 1,734
April 1,405 0 1,770
May 1,500 1 2,390
June 1,432 1 2,304
July 1,322 1 2,166
August 1,416 1 2,284
Sept 1,370 1 1,730
Oct 1,580 0 1,991
Nov 1,460 0 1,840
Dec 1,455 0 1,833
Data for Phoenix Factory
Utilities Cost Regression
5. Discuss the role of regression in assessing cost behavior.
Constant 243.1114997159
Std Err of Y Est 55.5082829356447
R Squared 0.96717927255452
No. of Observation 12
Degrees of Freedom 9
X Coefficient(s) 1.0971575051946 510.49073361447
Std Err of Coef. 0.210226332115593 32.5489464532519
Multiple Regression for Phoenix
Factory Utilities Cost
5. Discuss the role of regression in assessing cost behavior.
•The results gives rise to the following equation:
•Utilities cost = $243.11 + $1.097(Machine hours) + ($510.49 x Summer)
•R2 = .967, or 96.7 percent of the variation in utilities cost is explained by the
machine hours and summer variables.
6. Describe the use of managerial judgment in determining cost behavior.
• This method is used to:
✓ Determine fixed, variable cos, by using managerial experiences and
past observation of cost relationships
✓ refine statistical estimation results
• Advantage: simplicity
• Disadvantage: judgment errors
• Managerial judgment is critically important in determining cost behavior,
and it is by far the most widely used method in practice.
Sumber dan Referensi
• Lansen, Wiliam; Anderson, Shannon; and Maher,Michael. 2014.
Fundamentals of Cost Accounting. Forth Edition. McGraw Hill.
• Hansen R, Don; and Mowen Maryanne. 2007. Managerial Accounting.
Eight Edition. Thomson.
• Deviaesa, Devie. 2019. Akuntansi Manajemen: Strategis & Praktis. Andi.
• Ikatan Akuntan Indonesia. 2015. Akuntansi Manajemen Lanjutan. IAI.
• Boyd, Ken. Cost Accounting for Dummies. 2013. John Wiley & Sons.
