RESUME AKUNTANSI MANAJEMEN TM 12

Di susun :

Wanda Agustin (041911535007)

PROGRAM STUDI AKUNTANSI

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS AIRLANGGA

2021/2022
TRANSFER PRICING

A transfer price is the price charged for a component by the selling division to the buying
division of the same company. Transfer pricing is a complex issue and has an impact on
divisions and the company as a whole. Impact of Transfer Pricing on Divisions and the Firm as a
Whole When one division of a company sells to another division, both divisions as well as the
company as a whole are affected. The price charged for the transferred good affects both the
costs of the buying division and

1. the revenues of the selling division

2. Thus, the profits of both divisions, as well as the evaluation and compensation of their
managers, are affected by the transfer price.

The actual transfer price nets out for the company as a whole in that total pretax income for the
company is the same regardless of the transfer price. However, transfer pricing can affect the
level of after-tax profits earned by the multinational company that operates in multiple countries
with different corporate tax rates and other legal requirements set by the countries in which the
various divisions generate income.

Transfer Pricing Policies Several transfer pricing policies are used in practice, including the
following:

1. market price. If there is a competitive outside market for the transferred product, then the
best transfer price is the market price.
2. cost-based transfer prices. Frequently, there is no good outside market price. The lack of
a market price might occur because the transferred product uses patented designs owned
by the parent company. Then, a company might use a cost-based transfer pricing
approach.
3. negotiated transfer prices. Finally, top management may allow the selling and buying
division managers to negotiate a transfer price. This approach is particularly useful in
cases with market imperfections, such as the ability of an in-house division to avoid
selling and distribution costs that external market participants would have to incur.
THE BALANCED SCORECARD—BASIC CONCEPTS Segment income, ROI, residual
income, and EVA are important measures of managerial performance, but they lead managers to
focus only on dollar figures, which may not tell the whole story for the company.

The Balanced Scorecard is a strategic management system that defines a strategic-based

responsibility accounting system. The Balanced Scorecard translates an organization’s mission
and strategy into operational objectives and performance measures for the following four
perspectives:

1. The financial perspective describes the economic consequences of actions taken in the
other three perspectives.
2. The customer perspective defines the customer and market segments in which the
business unit will compete.
3. The internal business process perspective describes the internal processes needed to
provide value for customers and owners.
4. The learning and growth (infrastructure) perspective defines the capabilities that an
organization needs to create long-term growth and improvement. This perspective is
concerned with three major enabling factors: employee capabilities, information systems
capabilities, and employee attitudes (motivation, empowerment, and alignment).

Strategy Translation

Strategy specifies management’s desired relationships among the four perspectives. Strategy
translation, on the other hand, means specifying objectives, measures, targets, and initiatives for
each perspective. Consider, for example, the financial perspective.

a. Objective: For the financial perspective, a company’s objective may be to grow revenues
by introducing new products.
b. Measure: The performance measure may be the percentage of revenues from the sale of
new products.
 c. Target: The target or standard for the coming year for the measure may be 20% Initiative:
d. The initiative describes how this is to be accomplished. The “how,” of course, involves
the other three perspectives.

The Role of Performance Measures The Balanced Scorecard is not simply a collection of critical
performance measures. The performance measures are derived from a company’s vision,
strategy, and objectives. These measures must be balanced between the following measures:

1. performance driver measures

2. objective and subjective measures
3. external and internal measures
4. financial and nonfinancial measures

Linking Performance Measures to Strategy Balancing outcome measures with performance

drivers is essential to linking with the organization’s strategy. Performance drivers make things
happen and are indicators of how the outcomes are going to be realized. Thus, they tend to be
unique to a particular strategy.

Implementation Problems It is possible that key performance drivers such as training and
redesign of products did not achieve their targeted levels (i.e., fewer hours of training and fewer
products redesigned than planned). In this case, the failure to produce the targeted outcomes for
defects, customer satisfaction, market share, revenues, and profits could be merely an
implementation problem.

Invalid Strategy If the targeted levels of performance drivers were achieved and the expected
outcomes did not materialize, then the problem could very well lie with the strategy itself. This
example depicts a double-loop feedback.

The Four Perspectives and Performance Measures The Financial Perspective The financial
perspective establishes the long- and short-term financial performance objectives. The financial
perspective is concerned with the global financial consequences of the other three perspectives.
Revenue Growth Several possible objectives are associated with revenue growth, including the
following:

a. increase the number of new products

b. create new applications for existing products
c. develop new customers and markets
d. adopt a new pricing strategy

Cost Reduction Examples of cost reduction objectives include:

a. reducing the cost per unit of product

b. reducing the cost per customer
c. reducing the cost per distribution channel

Customer Perspective The customer perspective is the source of the revenue component for the
financial objectives. This perspective defines and selects the customer and market segments in
which the company chooses to compete. Core Objectives and Measures Once the customers and
segments are defined, then core objectives and measures are developed.

Core objectives and measures are those that are common across all organizations. The five key
core objectives are as follows:

a. increase market share

b. increase customer retention
c. increase customer acquisition
d. increase customer satisfaction
e. increase customer profitability

Customer Value In addition to the core measures and objectives, measures are needed that
drive the creation of customer value and, thus, drive the core outcomes. For example, increasing
customer value builds customer loyalty (increases retention) and increases customer satisfaction.
Internal (Process) Perspective The internal perspective typically focuses on identifying the
organization’s core internal business processes needed for creating customer and shareholder
value to achieve the customer and financial objectives. To provide the framework needed for this
perspective, a process value chain is defined. The process value chain is made up of three
processes:

1. The innovation process anticipates the emerging and potential needs of customers and
creates new products and services to satisfy those needs. It represents what is called the
long-wave of value creation.
2. The operations process produces and delivers existing products and services to
customers. It begins with a customer order and ends with the delivery of the product or
service. It is the short-wave of value creation.
3. The post-sales service process provides critical and responsive services to customers after
the product or service has been delivered.

Innovation Process: Objectives and Measures Objectives for the innovation process include the
following:

a. increase the number of new products

b. increase percentage of revenue from proprietary products
c. decrease the time to develop new products

Operations Process: Objectives and Measures The three operations process objectives that
typically are mentioned and emphasized include the following:

a. increase process quality

b. increase process efficiency
c. decrease process time

Cycle Time and Velocity The time to respond to a customer order is referred to as
responsiveness. Cycle time and velocity are two operational measures of responsiveness.
Cycle time is the length of time it takes to produce a unit of output from the time raw materials
are received (starting point of the cycle) until the good is delivered to finished goods inventory
(finishing point of the cycle).

Standard Cost per Minute = Cell Conversion Costs/Minutes Available

Manufacturing Cycle Efficiency Another time-based operational measure calculates MCE

(manufacturing cycle efficiency). MCE is measured as value-added time divided by total time.
Total time includes both value-added time (the time spent efficiently producing the product) and
nonvalue-added time (such as move time, inspection time, and waiting time). The formula for
computing MCE is:

MCE = Processing Time/Processing Time + Move Time + Inspection Time + Waiting Time

Post-sales Service Process: Objectives and Measures Increasing quality, increasing efficiency,
and decreasing process time are also objectives that apply to the post-sales service process.
Service quality, for example, can be measured by first-pass yields, where first-pass yields are
defined as the percentage of customer requests resolved with a single service call.

Learning and Growth Perspective The fourth and final category in a typical Balanced
Scorecard is the learning and growth perspective, which represents the source of the capabilities
that enable the accomplishment of the other three perspectives’ objectives. This perspective has
three major objectives:

a. increase employee capabilities

b. increase motivation, empowerment, and alignment
c. increase information systems capabilities

Employee Capabilities Three core outcome measurements for employee capabilities are
employee satisfaction ratings, employee turnover percentages, and employee productivity (e.g.,
revenue per employee).
Motivation, Empowerment, and Alignment Employees must not only have the necessary
skills, but they must also have the freedom, motivation, and initiative to use those skills
effectively.

Information Systems Capabilities Increasing information system capabilities means providing

more accurate and timely information to employees so that they can improve processes and
effectively execute new processes.