1. Cost Concepts and the Cost Accounting Information Systems
CHAPTER 2
Cost Concepts and the Cost Accounting Information Systems

2. Learning Objectives Mampu mendefinisikan pengertian cost object
Mampu menjelaskan term direct cost and indirect cost
Considerate for creating a cost accounting information system
Explain about cost classification

3. COST CONCEPTS Cost versus Expense
Cost object is defined as any item or activity for which costs are accumulated and measured
Traceability of Costs to Cost Object
Cost traceability in Service Industries

4. The Cost Information System
An integrated and coordinated information system provide information needed by managers
Designing a cost accounting information system requires an understanding of both the organizational structure and the type of information required.
Chart of Accounts
Electronic Data Processing (EDP)

5. Classifications of Costs
PRODUCT, as follow :
Manufacturing Costs : Direct Materials, Direct Labor and Factory Overhead ( indirect material, indirect labor and other factory costs )
Commercial Expenses : Marketing Expenses and Administrative Expenses
Explain from figure 2-1 page 2-11

6. Classifications of Costs
VOLUME OF PRODUCTION, as follow:
Variable Cost change in proportion to changes in activity within a relevant range.
Fixed cost are constant in total amount within a relevant range of activity
Semi Variable cost contain both fixed and variable elements

7. Classifications of Costs
MANUFACTURING DEPARTMENTS, as follow :
Producing Departments and Service Department
Direct Departmental Cost and Indirect Departmental Cost
Common Costs and Joint Cost

8. Classifications of Costs
ACCOUNTING PERIOD, as follow :
Capital Expenditure
Revenue Expenditure
DECISION, ACTION OR EVALUATION
Differential Cost
Sunk Cost