Question

Japanese companies are companies that apply Material Flow of Cost Accounting (MFCA) and this cost calculation method is then brought to Indonesia. Material Flow of Cost Accounting (MFCA) collaborates with ISO 14051. In connection with of MFCA to Indonesia, explain the MFCA starting from the historical process of MFCA, the definition of MFCA, the process of calculating MFCA, and the advantages if the companies using MFCA (using info graphic and explanation, you can also using example) (30 points).

Answer 1

Defination of MFCA:-

Material Flow Cost Accounting (MFCA) is an instrument utilized by assembling organizations to improve their material productivity. By keeping away from material misfortunes, vitality, expenses and CO2 outflows ought to be spared. To accomplish this, MFCA can be utilized to compute the genuine expenses of waste (Hidden Costs). MFCA is a significant component of operational asset proficiency for organizations and is normalized through ISO 14051.

Historical process of MFCA:-

The possibility of Material Flow Cost Accounting was conceived during the 1980s. The point was to build up an instrument to help natural administration and eco-controlling. The strategy started in Germany, yet the advancement came in Japan. One model is the camera producer Canon, which had the option to spare more than €30 million in material expenses somewhere in the range of 2004 and 2012 through Material Flow Cost Accounting. Propelled by the Japanese best practice models, an ever increasing number of organizations are investigating their material ows and material waste. Furthermore, it's justified, despite all the trouble, in light of the fact that the loss of material methods lost included worth, in light of the fact that the waste material was additionally bought, prepared and moved.

Advantages to companies using MFCA:-

MFCA runs on the fundamental standard of preservation of Physics that expresses that "Vitality can nor be made nor obliterated yet it tends to be changed". In like manner MFCA underline that whatever goes in the creation procedure as Input should come out as valuable Output limiting wastage or non-items. As indicated by ISO 14051: Material Flow Cost Accounting; "MFCA is an instrument for evaluating the ows and supplies of materials in procedures or creation lines in both physical and money related units". In customary cost bookkeeping, cost of waste and its removal is dumped into overhead record which conceals the resultant signicant cost. In any case, MFCA arrange the yield into two classes that are "expected item" and "non-item/negative item". The announcing of this negative item (Waste) helps in better comprehension of waste expenses and thusly helps in decrease of this waste either through item improvement or procedure improvement . In this manner the MFCA rationale is basic; "Less waste prompts less sources of info which lessens costs and ecological risks." In an examination ; it is seen that MFCA identied two kinds of material misfortunes. First are such material misfortunes that can be handled legitimately by creation division itself as such misfortunes might be decreased/improved at the creation site