Operating Decisions PERTEMUAN X Dr Rilla Gantino, SE., AK., MM MM-FEB

  

Operating Decisions

PERTEMUAN X

Dr Rilla Gantino, SE., AK., MM

MM-FEB

KEMAMPUAN AKHIR YANG DIHARAPKAN

  Mahasiswa mengetahui tentang konsep keputusan yang berkait dengan operasional, memahmi tentang keputusan operasional yang berkait dengan proses produksi, konsep TOC serta konsep tentang relevant cost dalam rangka pengambilan keputusan taktis.

  Understanding the Business How do business activities

  recognized and measured? How are these activities

  income statement?

  reported on the

  reported on the

  How are these activities

  income statement? How are these activities

  income statement?

  reported on the

  reported on the

  How are these activities

  recognized and measured?

  How do business activities

  How are these activities

  recognized and measured? How are these activities

  recognized and measured?

  How are these activities

  affect the income statement? How are these activities

  affect the income statement?

  How do business activities

  affect the income statement? How do business activities

  affect the income statement?

  income statement? The Operating Cycle Begin

  Begin

  Purchase or Purchase or Purchase or

  Purchase or manufacture manufacture manufacture manufacture products or products or products or products or supplies on supplies on supplies on supplies on credit. credit. credit. credit.

  Receive payment Pay

  Receive payment Receive payment Pay Pay

  Receive payment Pay from customers. suppliers. from customers. from customers. suppliers. suppliers. from customers. suppliers.

  Deliver product Deliver product Deliver product

  Deliver product or provide service or provide service or provide service or provide service to customers on to customers on to customers on to customers on credit. credit. credit. credit.

  

The Operating Cycle

Time Period:

  operating activities be recognized (recorded)? Recognition Issues :

  recognized?

  What amounts should be

  What amounts should be

  Measurement Issues:

  recognized? Measurement Issues:

  

recognized?

  What amounts should be

  What amounts should be

  Measurement Issues:

  operating activities be recognized (recorded)? Measurement Issues:

  operating activities be recognized (recorded)?

  When should the effects of

  When should the effects of

  Recognition Issues :

  

operating activities be recognized (recorded)?

  Time Period:

  The long life of a company can be

  The long life of a company can be

  The long life of a company can be

  

reported over a series of shorter time periods

  reported over a series of shorter time periods .

  . Time Period:

  Time Period:

  The long life of a company can be

  When should the effects of

  reported over a series of shorter time periods

  reported over a series of shorter time periods .

  .

  Recognition Issues :

  Recognition Issues :

  When should the effects of

  recognized? Elements on the Income

Statement

Losses Losses

  Decreases in assets or increases in

  Decreases in assets or increases in liabilities from ongoing operations. liabilities from ongoing operations.

  liabilities from peripheral transactions .

  liabilities from peripheral transactions

  Increases in assets or settlement of

  Increases in assets or settlement of

  Gains Gains

  .

  liabilities from peripheral transactions .

  liabilities from peripheral transactions

  Increases in assets or settlement of

  Gains Gains Increases in assets or settlement of

  Decreases in assets or increases in

  Decreases in assets or increases in liabilities from peripheral transactions. liabilities from peripheral transactions.

  Expenses Expenses

  Decreases in assets or increases in liabilities from ongoing operations. liabilities from ongoing operations.

  Expenses Expenses Decreases in assets or increases in

  Increases in assets or settlement of liabilities from ongoing operations. liabilities from ongoing operations.

  Increases in assets or settlement of

  Revenues Revenues

  Increases in assets or settlement of liabilities from ongoing operations. liabilities from ongoing operations.

  Revenues Revenues Increases in assets or settlement of

  Decreases in assets or increases in liabilities from peripheral transactions. liabilities from peripheral transactions.

  Decreases in assets or increases in

  Losses Losses

  .

  

Papa John’s Primary

Papa John’s Primary

  

Operating Expenses

Operating Expenses

Papa John’s Primary

  

Papa John’s Primary

Operating Expenses

  

Operating Expenses

Cost of sales Cost of sales (used inventory) (used inventory) Cost of sales Cost of sales (used inventory) (used inventory)

  

Salaries and

Salaries and

benefits to

benefits to

employees employees

  

Salaries and

Salaries and

benefits to

benefits to

employees employees

  Other costs (like Other costs (like advertising, advertising, insurance, and insurance, and depreciation) depreciation) Other costs (like Other costs (like advertising, advertising, insurance, and insurance, and

depreciation)

depreciation)

  How Are Operating Activities Recognized and Measured? Revenue is recorded

  Revenue is recorded when cash is received.

  Revenue is recorded

  Revenue is recorded when cash is received. when cash is received.

  Expenses are recorded

  Expenses are recorded when cash is paid.

  Expenses are recorded

  Expenses are recorded when cash is paid. when cash is paid.

  

Cash Basis

  

Assets, liabilities, revenues, and expenses should be

Assets, liabilities, revenues, and expenses should be

recognized when the transaction that causes them

recognized when the transaction that causes them

occurs, occurs, not necessarily when cash is paid or received. not necessarily when cash is paid or received.

  

Assets, liabilities, revenues, and expenses should be

Assets, liabilities, revenues, and expenses should be

recognized when the transaction that causes them

recognized when the transaction that causes them

occurs, occurs, not necessarily when cash is paid or received. not necessarily when cash is paid or received.

  Required by -

  G

  enerally

  A

  cceptable

  A

  ccounting

  P

  rinciples

  Required by - G enerally

  A cceptable

  A ccounting

  P rinciples

  How Are Operating Activities Recognized and Measured?

Accrual Accounting

  Revenue Principle Recognize revenues when . . .

  Recognize revenues when . . .

   Collection is reasonably assured.

  The price is fied or determinable.

   The price is fied or determinable.

  

There is persuasive evidence of an

arrangement for customer payment. arrangement for customer payment.

  

There is persuasive evidence of an

  Delivery has occurred or services have been rendered. have been rendered.

   Delivery has occurred or services

  Recognize revenues when . . .

  Recognize revenues when . . .

  Collection is reasonably assured.

   Collection is reasonably assured.

  The price is fied or determinable.

   The price is fied or determinable.

  

There is persuasive evidence of an

arrangement for customer payment. arrangement for customer payment.

  

There is persuasive evidence of an

  Delivery has occurred or services have been rendered. have been rendered.

   Delivery has occurred or services

  Collection is reasonably assured.

  Revenue Principle CASH COLLECTED (Goods or services due to customers) over time will become REVENUE (Earned when goods or services provided) Rent collected in advance Rent revenue Unearned air traffic revenue Air traffic revenue Deferred subscription revenue Subscription revenue

  Typical liabilities that become revenue when earned include . . . revenue when earned include . . .

Typical liabilities that become

  Revenue Principle CASH TO BE COLLECTED (Owed by customers)

and already

earned as

  REVENUE (Earned when goods or services provided) Interest receivable Interest revenue Rent receivable Rent revenue Royalties receivable Royalty revenue

  Assets reflecting revenues earned but not yet received in cash include . . . not yet received in cash include . . .

Assets reflecting revenues earned but

  The Matching Principle Resources

  Resources Resources Resources consumed to earn consumed to earn consumed to earn consumed to earn revenues in an revenues in an revenues in an revenues in an accounting period accounting period accounting period accounting period should be recorded should be recorded should be recorded should be recorded in that period, in that period, in that period, in that period, regardless of when regardless of when regardless of when regardless of when cash is paid . cash is paid . cash is paid . cash is paid .

  

The Matching Principle

CASH PAID FOR as used over time becomes EXPENSE Supplies inventory

  Supplies expense Prepaid insurance Insurance expense

  

Buildings and equipment Depreciation expense

  Typical assets and their related expense accounts include. . . expense accounts include. . .

Typical assets and their related

A = L + SE A = L + SE ASSETS ASSETS Debit for Increase Credit for Decrease LIABILITIES LIABILITIES Debit for Decrease Credit for Increase RETAINED RETAINED EARNINGS EARNINGS Debit for Decrease Credit for Increase CONTRIBUTED CONTRIBUTED CAPITAL CAPITAL Debit for Decrease Credit for Increase

  Next, let’s see how

  Next, let’s see how

  Revenues and

  Revenues and

  Expenses affect

  Expenses affect Retained Earnings. Retained Earnings.

  Eipanded Transaction Analysis Model

  Dividends decrease Dividends decrease

  Net Income increases Net Income increases Retained Earnings.

  Retained Earnings.

  Retained Earnings.

  Retained Earnings.

  Debit Credit for for Decrease Increase REVENUES EXPENSES REVENUES EXPENSES Debit Credit Debit Credit for for for for Decrease Increase Increase Decrease