MATA KULIAH : Management Accounting

KODE MATA KULIAH/SKS : AK2003 / 3 sks

KURIKULUM : 2017
VERSI : 0.2

Prepared by: Andi Imannuddin

 Schedule Course “Management Accounting”
WEEK DATE MAIN TOPIC
1 22/9/18 The Role and Basic of Management Accounting Concepts

2 29/9/18 Activity-Based Management

T-1
3 6/10/18 Budgeting for Planning and Control:
Operating Budget, Financial Budget, & Traditional Master Budget Process
4 13/10/18 Budgeting for Planning and Control:
Flexible Budget, Activity Based Budget, & Behavioral Dimension of Budget
5 20/10/18 Cost – Volume – Profit Analysis: A Managerial Planning Tools T-2
BEP – Units & Sales Dollars
6 27/10/18 Cost – Volume – Profit Analysis: A Managerial Planning Tools
Multiple Product Analysis & Graphical Representation of CVP Relationship
T-3
7 UTS
8 24/11/18 Segmented Reporting, Investment Center Evaluation and Transfer Pricing:
Decentralization and Responsibilities Centers & Return on Investment (ROI)
9 1/12/18 Segmented Reporting, Investment Center Evaluation and Transfer Pricing: T-4
Residual Income (RI) & Economic Value Added (EVA)
 Schedule Course “Management Accounting”
WEEK DATE MAIN TOPIC
10 8/12/18 Segmented Reporting, Investment Center Evaluation and Transfer Pricing:
Transfer Pricing
11 15/12/18 Lean Accounting, Target Costing and The Balanced Scorecard:
Lean Manufacturing, Lean Accounting, & Life Cycle Cost Management and
The Role of Target Costing
12 22/12/18 Lean Accounting, Target Costing and The Balanced Scorecard:
The Balanced Scorecard: Basic Concepts
13 5/1/19 Capital Budgeting:
Strategy & Capital Budgeting process
14 12/1/19 Capital Budgeting:
Payback Period, Accounting Rate of Return, Net Present Value, &
Internal Rate of Return
15 Belajar Mandiri
T-5
16 UAS
 Pertemuan - 3
Budgeting for Planning and
Control
KEMAMPUAN AKHIR YANG DIHARAPKAN

Mahasiswa mampu memahami serta

membuat master budget
 MATERI POKOK
Week Main Topic Sub Topic Remark

3 Budgeting for • Description of Budgeting Week – 3:

Planning and Control • Preparing the Master Budget Tugas 1
• Operating Budget, Financial Budget, & (10%)
Traditional Master Budget Process
 SUMBER PUSTAKA
1. Charles T. Horngren. Et al, Cost Accounting : A
Managerial Emphasis – 15th Edition, Pearson
Education, 2015.
2. Hansen, Don. R., Maryane M. Mowen,
Management Accounting – 8th Edition, Thompson
South Western, 2008.
 Master Budgeting
• Budget is detailed plan for the future that is usually
expressed in formal quantitative terms.

• Budget is the quantitative expression of a proposed plan of

action by management for a specified period, and an aid to
coordinate what needs to be done to implement that plan.

• Budget are used for two distinct purposes – Planning &

Control.
 Master Budgeting
• Planning involves developing goals and preparing various
budgets to achieve those goals.

• Control involves gathering feedback to ensure that the

plan is being properly executed or modified as
circumstances change.

• Budgeting is most useful when it is integrated with a

company’s strategy.
 Strategy, Planning and Budget

• The Strategic Plan identifies strategies for future

activities and operations, generally covering at least five
years. The organization can translate the overall strategy
into long-term and short-term.
Planning, Control, and Budgets
 Advantage of Budget
1. Budget communicate management’s plans
throughout the organization. It improves communication &
coordination.
2. Budget force managers to think about and plan for the
future.
3. The Budgeting process provides a means of allocating
resources to those parts of the organization where they can
be used most effectively.
4. The Budgeting process can uncover potential bottlenecks
before they occur.
 Advantage of Budget
5. Budgets coordinate the activities of the entire of the
organization by integrating the plan of its various parts
(same direction).
6. Budgets define goals and objectives that can serves as
benchmarks for evaluating subsequent performance. It
provides a standard for Performance evaluation.
7. The Budgeting can motivating managers and other
employees
8. Budget provides information that can be used to
improve decision making.
 Feedback
• Variances: different between actual results with budgeted
amounts.
• Variances can help managers implement strategies and
evaluate performances in three ways:
1. Early warning: Managers can then take corrective actions
or exploit the available opportunities.
2. Performances evaluation: Variances prompt managers to
probe how well the company has implemented its
strategy.
3. Evaluating strategy: Variances sometimes signal to
managers that their strategies are ineffective. Top
Management may then want to re-evaluate the strategy.
 Preparing The Master Budget
• The Master Budget is the comprehensive financial plan
for the organization as a whole.

• Yearly budgets are broken down into quarterly and

monthly budgets.

• The Master Budget starts with the sales forecast, which

is basis for the sales budget.

• The Master Budget:

– Operating Budget
– Financial Budget
 Preparing The Master Budget
• The Operating Budget consists of:
1. Sales Budget
2. Production Budget
3. Direct Materials Purchases Budget
4. Direct Labor Budget
5. Overhead Budget
6. Ending Finished Goods Inventory Budget
7. Cost of Goods Sold Budget
8. Selling & Administrative Expenses Budget
9. Budgeted Income Statement
Components of The Master Budget
 Preparing the Operating Budget
Schedule 1 - (Sales Budget):
• The first budget is the sales budget which is based on the sales
forecast.

Starting point for Production Budget

Starting point for Marketing Expense Budget

Goes to Budgeted Income Statement

 Preparing the Operating Budget
Schedule 2 - (Production Budget):

Beginning Inventory: 180 &

Starting point for Direct Materials Purchases Budget Ending Inventory - Q4: 20% of
Starting point for Direct Labor Budget Sales Q1 - 2009
19
 Preparing the Operating Budget
Schedule 3 - (Direct Materials Purchases Budget – Plain T-Shirts):

Based on Company Inventory Policy Goes to Cost of Goods Sold Budget

 Preparing the Operating Budget
Schedule 3 - (Direct Materials Purchases Budget - Ink):

Based on Company Inventory Policy Goes to Cost of Goods Sold Budget

 Preparing the Operating Budget
Schedule 4 - (Direct Labor Budget):

Starting point for Overhead Budget

Goes to Cost of Goods Sold Budget
 Preparing the Operating Budget
Schedule 5 - (Overhead Budget):

Goes to Cost of Goods Sold Budget

 Preparing the Operating Budget
Schedule 6 - (Ending Finished Goods Inventory Budget):

1Amounts taken from Schedule 3.

2Amounts taken from Schedule 4.
3Amounts taken from Schedule 5.
Goes to Cost of Goods Sold Budget
 Preparing the Operating Budget
Schedule 7 - (Cost of Goods Sold Budget):

Goes to Cost of Goods Sold Budget

 Preparing the Operating Budget
Schedule 8 - (Selling & Administrative Expenses Budget):

Goes to Budgeted Income Statement

 Preparing the Operating Budget
Schedule 9 - (Budgeted Income Statement):
 Operating Budgets for Merchandising
& Service Firms
• Merchandising:
– Merchandise purchases replaces production
– Direct materials and direct labor are not required
• For-profit service:
– Sales budget is the production budget
– Inventories are nonexistent
• Not-for-profit service:
– Budget for level and types of services provided
– Statement of sources and uses replaces income statement
 Preparing the Financial Budget
1. The Cash Budget:
 Break down into short time periods
 Forecast need for short-term borrowing
 Forecast periods of high cash balances
Preparing the Financial Budget
Preparing the Financial Budget
Preparing the Financial Budget
Preparing the Financial Budget
 Preparing the Financial Budget
2. Budgeted Balance Sheet:
• Current (actual) balance sheet
• Integrate data from all other budgets
• The budgeted balance sheet depends on
information contained in the current balance
sheet and in the other budgets in the master
budget.
Preparing the Financial Budget
Preparing the Financial Budget
Shortcomings of the Traditional Master Budget Process
• Departmental orientation
– Plan from resources to outputs
– Does not recognize interdependencies among
departments
• Static budgets
– Developed for a single level of activity
– Based on incremental adjustments
• Results orientation
– Disconnects the process from its output
– Cost-cutting accomplished by across-the-board cuts