Chapter 5 Variable Costing

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chap.5

Forwardlooking
retrospective
图5-2 经济成本 vs. 会计成本
• 经济利润与会计利润
收益经济利润=收益- 经济成本
（机会成本总和）机会成本总和）
收益会计利润=收益- 会计成本
（显性成本）显性成本）
3、机会成本vs.沉没成本 • 机会成本（opportunity cost））
the personal computer industry
(where most costs are variable) • Companies like Dell, Compaq, and IBM produce millions of personal computers every year. Because the computers they produce are very similar, competition is intense, and profitability depend critically on the ability to keep costs down. Most of these cost are variable – they increase in proportion to the number of computer produced each year. Most important is the cost of components: the microprocess that does much of the actual computation, memory chips, hard disk drives and other storage device, video and sound cards, etc. Typically, the majority of these components are purchased from outside suppliers in quantities that depend on the number of computers produced.

亨格瑞管理会计英文第15版练习答案05

CHAPTER 5 COVERAGE OF LEARNING OBJECTIVESCHAPTER 5Relevant Information for Decision Making with a Focus on Pricing Decisions5-A1 (40-50 min.)1. INDEPENDENCE COMPANYContribution Income StatementFor the Year Ended December 31, 2009(in thousands of dollars)Sales $2,200 Less variable expensesDirect material $400Direct labor 330Variable manufacturing overhead (Schedule 1) 150 Total variable manufacturing cost ofgoods sold $880 Variable selling expenses 80Variable administrative expenses 25Total variable expenses 985 Contribution margin $ 1,215 Less fixed expenses:Fixed manufacturing overhead (Schedule 2) $345Selling expenses 220Administrative expenses 119 Total fixed expenses 684 Operating income $ 531INDEPENDENCE COMPANYAbsorption Income StatementFor the Year Ended December 31, 2009(in thousands of dollars)Sales $2,200 Less manufacturing cost of goods sold:Direct material $400Direct labor 330Manufacturing overhead (Schedules 1 and 2) 495 Total manufacturing cost of goods sold 1,225 Gross margin $ 975 Less:Selling expenses $300Administrative expenses 144 444 Operating income $ 531INDEPENDENCE COMPANYSchedules of Manufacturing OverheadFor the Year Ended December 31, 2009(in thousands of dollars)Schedule 1: Variable CostsSupplies $ 20Utilities, variable portion 40Indirect labor, variable portion 90 $150 Schedule 2: Fixed CostsUtilities, fixed portion $ 15Indirect labor, fixed portion 50Depreciation 200Property taxes 20Supervisory salaries 60 345 Total manufacturing overhead $495 2. Change in revenue $200,000Change in total contribution margin:Contribution margin ratio in part 1is $1,215 ÷ $2,200 = .552Ratio times decrease in revenue is .552 × $200,000 $ 110,400 Operating income before change 531,000 New operating income $420,600 This analysis is readily done by using data from the contribution income statement.In contrast, the data in the absorption income statement must be analyzed and split into variable and fixed categories before the effect on operating income can beestimated.5-A2 (25-30 min.)1. A contribution format, which is similar to Exhibit 5-6, clarifies the analysis.Without WithSpecial Effect of SpecialOrder Special Order Order Units 2,000,000 150,000 2,150,000Total Per UnitSales $11,000,000 $660,000 $4.40 1$11,660,000 Less variable expenses:Manufacturing $ 3,500,000 $322,500 $2.15 2$ 3,822,500 Selling & administrative 800,000 35,250 .2353 835,250 Total variable expenses $ 4,300,000 $357,750 $2.385 $ 4,647,250 Contribution margin $ 6,700,000 $302,250 $2.015 $ 7,002,250 Less fixed expenses:Manufacturing $ 3,000,000 0 0.00 $ 3,000,000 Selling & administrative 2,200,000 0 0.00 2,200,000 Total fixed expenses $ 5,200,000 0 0.00 $ 5,200,000 Operating income $ 1,500,000 $302,250 $2.015 $ 1,802,250 1$660,000 ÷ 150,000 = $4.402Regular unit cost = $3,500,000 ÷ 2,000,000 = $1.75 Logo .40Variable manufacturing costs $2.153Regular unit cost = $800,000 ÷ 2,000,000 = $ .40 Less sales commissions not paid (3% of $5.50) (.165)Regular unit cost, excluding sales commission $ .2352. Operating income from selling 7.5% more units would increase by $302,250 ÷$1,500,000 = 20.15%. Note also that the average selling price on regularbusiness was $5.50. The full cost, including selling and administrative expenses, was $4.75. The $4.75, plus the 40¢ per logo, less savings in commissionsof .165¢ came to $4.985. The president apparently wanted $4.985 + .08($4.985)= $4.985 + .3988 = $5.3838 per pen.Most students will probably criticize the president for being too stubborn. Thecost to the company was the forgoing of $302,250 of income in order to protectthe company's image and general market position. Whether $302,250 was a wise investment in the future is a judgment that managers are paid for rendering.5-A3 (15-20 min.)The purpose of this problem is to underscore the idea that any of a number of general formulas might be used that, properly employed, would achieve the same target selling prices. Desired sales = $7,500,000 + $1,500,000 = $9,000,000.The target markup percentage would be:1. 100% of direct materials and direct labor costs of $4,500,000.Computation is: ($9,000,000 - $4,500,000) ÷ $4,500,000 = 100%2. 50% of the full cost of jobs of $6,000,000.Computation is: ($9,000,000 - $6,000,000) ÷ $6,000,000 = 50%3. [$9,000,000 – ($3,500,000 + $1,000,000 + $700,000)] ÷ $5,200,000 = 73.08%4. ($9,000,000 - $7,500,000) ÷ $7,500,000 = 20%5. [$9,000,000 – ($3,500,000 + $1,000,000 + $700,000 + $500,000)] ÷ $5,700,000= $3,300,000 ÷ $5,700,000 = 57.9%If the contractor is unable to maintain these profit percentages consistently, the desired operating income of $1,500,000 cannot be obtained.1. Revenue ($360 × 70,000) $25,200,000Total cost over product life 16,000,000 Estimated contribution to profit $ 9,200,000 Desired (target) contribution to profit40% × $25,200,000 10,080,000 Deficiency in profit $ 880,000The product should not be released to production.2. Previous total estimated cost $16,000,000Cost savings from suppliers.20 × .70 × $8,000,000 1,120,000 Revised total estimated cost $14,880,000 Revised total contribution to profit:$25,200,000 - $14,880,000 $10,320,000 Desired (target) contribution to profit 10,080,000 Excess contribution to profit $ 240,000The product should be released to production.3. Previous revised total estimated cost fromrequirement 2. $14,880,000 Process improvement savings:.25 × .30 × $8,000,000 $600,000Less cost of new technology 220,000 380,000 Revised total estimated cost 14,500,000 Revised total contribution to profit:$25,200,000 - $14,500,000 $10,700,000 Desired (target) contribution to profit 10,080,000 Excess contribution to profit $ 620,000 The product should be released to production.1. KINGLAND MANUFACTURINGContribution Income StatementFor the Year Ended December 31, 2009(In thousands of dollars)Sales $13,000 Less variable expenses:Direct material $4,000Direct labor 2,000Variable indirect manufacturingcosts (Schedule 1) 960Total variable manufacturing cost of goods sold $6,960Variable selling expenses:Sales commissions $500Shipping expenses 300 800Variable clerical salaries 400Total variable expenses 8,160 Contribution margin $ 4,840 Less fixed expenses:Manufacturing (Schedule 2) $ 702Selling (advertising) 400 Administrative-executive salaries 100Total fixed expenses 1,202 Operating income $ 3,638KINGLAND MANUFACTURINGAbsorption Income StatementFor the Year Ended December 31, 2009(In thousands of dollars)Sales $13,000 Less manufacturing cost of goods sold:Direct material $4,000Direct labor 2,000Indirect manufacturing costs(Schedules 1 and 2) 1,662Gross profit 5,338 Selling expenses:Sales commissions $500Advertising 400Shipping expenses 300 $1,200 Administrative expenses:Executive salaries $100Clerical salaries 400 500 1,700 Operating income $ 3,638KINGLAND MANUFACTURINGSchedules 1 and 2Indirect Manufacturing CostsFor the Year Ended December 31, 2009(In thousands of dollars)Schedule 1: Variable CostsCutting bits $ 60Abrasives for machining 100Indirect labor 800 $ 960Schedule 2: Fixed CostsFactory supervisors' salaries $100Factory methods research 40Long-term rent, factory 100Fire insurance on equipment 2Property taxes on equipment 30Depreciation on equipment 400Factory superintendent's salary 30 702Total indirect manufacturing costs $1,6622. Operating income would decrease from $3,638,000 to $3,268,000:Decrease in revenue $1,000,000Decrease in total contribution margin*:Ratio times revenue is .37 × $1,000,000 $ 370,000Decrease in fixed expenses 0Operating income before increase 3,638,000New operating income $3,268,000*Contribution margin ratio in contribution income statement is $4,840 ÷$13,000 = .37 (rounded).The above analysis is readily calculated by using data from the contribution income statement. In contrast, the data in the absorption income statement must be analyzed and divided into variable and fixed categories before the effect on operating income can be estimated.5-B2 (30-40 min.)1. DANUBE COMPANYIncome StatementFor the Year Ended December 31, 20X0Total Per Unit Sales $40,000,000 $20.00Less variable expenses:Manufacturing $18,000,000Selling & administrative 9,000,000 27,000,000 13.50Contribution margin $13,000,000 $ 6.50Less fixed expenses:Manufacturing $ 4,000,000Selling & administrative 6,000,000 10,000,000 5.00Operating income $ 3,000,000 $ 1.50 2. Additional details are either in the statement of the problem or in the solution torequirement 1:Total Per Unit Full manufacturing cost $22,000,000 $11.00 Variable cost:Manufacturing $18,000,000 $ 9.00 Selling and administrative 9,000,000 4.50 Total variable cost $27,000,000 $13.50 Full cost = fully allocated cost*Full manufacturing cost $22,000,000 $11.00 Selling and administrative expenses 15,000,000 7.50 Full cost $37,000,000 $18.50 Gross margin ($40,000,000 - $22,000,000) $18,000,000 $ 9.00 Contrib. margin ($40,000,000 - $27,000,000) $13,000,000 $ 6.50 * Students should be alerted to the loose use of these words. Their meaning maynot be exactly the same from company to company. Thus, "fully allocatedcost" in some companies may be used to refer to manufacturing costs only.3. Ricardo’s analysis is incorrect. He was on the right track, but he did notdistinguish sufficiently between variable and fixed costs. For example, whenmultiplying the additional quantity ordered by the $11 full manufacturing cost, hefailed to recognize that $2.00 of the $11 full manufacturing cost was a "unitized"fixed cost allocation. The first fallacy is in regarding the total fixed cost asthough it fluctuated like a variable cost. A unit fixed cost can be misleading if itis used as a basis for predicting how total costs will behave.A second false assumption is that no selling and administrative expenses will beaffected except commissions. Shipping expenses and advertising allowances willbe affected also -- unless arrangements with Costco on these items differ fromthe regular arrangements.The following summary, which is similar to Exhibit 5-6 in the textbook, is acorrect analysis. The middle columns are all that are really necessary.Without WithSpecial Effect of SpecialOrder Special Order Order Units 2,000,000 100,000 2,100,000Total Per UnitSales $40,000,000 $1,600,000 $16.00 $41,600,000 Less variable expenses:Manufacturing $18,000,000 $ 900,000 $ 9.00 $18,900,000 Selling and administrative 9,000,000 330,000 3.30* 9,330,000 Total variable expenses $27,000,000 $1,230,000 $12.30 $28,230,000 Contribution margin $13,000,000 $ 370,000 $ 3.70 $13,370,000 Less fixed expenses:Manufacturing $ 4,000,000 0 0.00 $ 4,000,000 Selling and administrative 6,000,000 20,000 0.20** 6,020,000 Total fixed expenses $10,000,000 20,000 0.20 $10,020,000 Operating income $ 3,000,000 $ 350,000 $ 3.50 $ 3,350,000 * Regular variable selling and administrative expenses,$9,000,000 ÷ 2,000,000 = $ 4.50 Less: Average sales commission at 6% of $20 = (1.20) Regular variable sell. and admin. expenses, less commission $ 3.30**Fixed selling and administrative expenses, specialcommission, $20,000 ÷ 100,000 .20Some students may wish to enter the $20,000 as an extra variable cost, makingthe unit variable selling and administrative cost $3.50 and thus adding no fixedcost. The final result would be the same; in any event, the cost is relevantbecause it would not exist without the special order.Some instructors may wish to point out that a 5% increase in volume wouldcause an 11.7% increase in operating income, which seems like a highinvestment by Danube to maintain a rigid pricing policy.4. Ricardo is incorrect. Operating income would have declined from $3,000,000 to$2,850,000, a decline of $150,000. Ricardo’s faulty analysis follows:Old fixed manufacturing cost per unit,$4,000,000 ÷ 2,000,000 = $2.00 New fixed manufacturing cost per unit,$4,000,000 ÷ 2,500,000 = 1.60 "Savings" $ .40Loss on variable manufacturing costs per unit,$8.70 - $9.00 (.30) Net savings per unit in manufacturing costs $ .10The analytical pitfalls of unit-cost analysis can be avoided by using thecontribution approach and concentrating on the totals:Without Effect of WithSpecial Special SpecialOrder Order Order Sales $40,000,000 $4,350,000a$44,350,000Variable manufacturingcosts $18,000,000 $4,500,000b$22,500,000 Other variable costs 9,000,000 0 9,000,000 Total variable costs $27,000,000 $4,500,000 $31,500,000 Contribution margin $13,000,000 $ (150,000)c$12,850,000a500,000 × $8.70 selling price of special orderb 500,000 × $9.00 variable manufacturing cost per unit of special orderc 500,000 × $.30 negative contribution margin per unit of special orderNo matter how fixed manufacturing costs are unitized, or spread over the unitsproduced, their total of $4,000,000 remains unchanged by the special order.5-B3 (10-15 min.)1. Cost-plus pricing is adding a specified markup to cost to cover those components of the value chain not included in the cost plus a desired profit. In this case the markup is 30% of production cost.Price charged for piston pin = 1.30 × $50.00 = $65.00. If the estimated selling price is only $46 and this price cannot be influenced by Caterpillar, a manager would be unlikely to favor releasing this product for production.2. Target costing assumes the market price cannot be influenced by companies except by changing the value of the product to consumers. The price charged would then be the $46 estimated by market research.The highest acceptable manufactured cost or target cost, T, isDollarsTarget Price $ 46.00Target Cost TTarget Gross Margin $ .30T46 – T = .30T1.30T = 46T = 46 ÷ 1.30 = $35.383. The required cost reduction over the product’s life isExisting manufacturing cost $50.00Target manufacturing cost 35.38Required cost reduction $14.62Steps that Caterpillar managers can take to meet the required cost reduction include value engineering during the design phase, Kaizen costing during the production phase, and activity-based management throughout the product’s life.5-1 Precision is a measure of the accuracy of certain data. It is a quantifiable term. Relevance is an indication of the pertinence of certain facts for the problem at hand. Ideally, data should be both precise and relevant, but relevance generally takes priority.5-2 Decisions may have both quantitative and qualitative aspects corresponding to the nature of the facts being considered before deciding. Quantitative implications of alternative choices can be expressed in monetary or numerical terms, such as variable costs, initial investment, etc. Other relevant features may not be quantifiable, such as the quality of life in a choice between locating in San Francisco or New York. The advantage of quantitative information is that it is more objective and often easier to compare alternatives than with qualitative judgments.5-3 The accountant's role in decision-making is primarily that of a technical expert on relevant information analysis, especially relevant costs. The accountant is usually an information provider, not the decision maker, although the accountant may be part of a management team charged with making decisions.5-4 No. Only future costs that are different under different alternatives are relevant to a decision.5-5 Past data are unchangeable regardless of present or future action and thus would not differ under different alternatives.5-6 Past costs may be bases for formulating predictions. However, past costs are not inputs to the decision model itself because past costs cannot be changed by the decision.5-7 The contribution approach has several advantages over the absorption approach, including a better analysis of cost-volume-profit relationships, clearer presentation of all variable costs, and more relevant arrangement of data for such decisions as make-or-buy or product expansion.5-8 The terms that describe an income statement that emphasizes the differences between variable or fixed costs are contribution approach, variable costing, or direct costing.5-9 The commonalty of approach is the focus on the differences between future costs and revenues of different available alternatives.5-10 No, fixed costs are not always irrelevant. Often they are not relevant. However, they can be relevant if they are affected by the decision being considered.5-11 Customers are one of the factors influencing pricing decisions because they can buy or do without the product, they can make the product themselves, or they can usually purchase a similar product from another supplier.5-12 Target cost per unit is the average total unit cost over the product’s life cycle that will yield the desired profit margin.5-13 Value engineering is a cost-reduction technique, used primarily during the design function in the value chain, that uses information about all value chain functions to satisfy customer needs while reducing costs.5-14 Kaizen costing is the Japanese term for continuous improvement during manufacturing.5-15 In target costing, managers start with a market price. Then they try to design a product with costs low enough to be profitable at that price. Thus, prices essentially determine costs.5-16 Customer demands and requirements are important in the product development process. Many companies seek customer input on the design of product features. They seek to reduce non-value-added costs without affecting product features that are valuable to customers. Suppliers are also important. Companies purchase many of the materials used in products. They have to work with suppliers to get the lowest cost for these materials.5-17 Not necessarily. There are other important factors that management must consider before discontinuing a product. The product may be necessary to round out a product line. The product may be the company’s attempt to break into a new market area or new product class.5-18 The variable costs of a job can be misused as a guide to pricing. However, the adjusted markup percentages based on variable costs can have the same price result as those based on total costs, plus they have the advantage of indicating the minimum price at which any sale may be considered profitable even in the short run.5-19 Three examples of pricing decisions are (1) pricing new products, (2) pricing products sold under private labels, and (3) responding to new prices of a competitor's products.5-20 Three popular markup formulas are (1) as a percentage of variable manufacturing costs, (2) as a percentage of total variable costs, and (3) as a percentage of full costs.5-21 Two long-run effects that inhibit price cutting are (a) the effects on longer-run price structures and (b) the effects on longer-run relations with customers.5-22 Full costs are more popular than variable costs for pricing because price stability is encouraged and in the long run all costs must be recovered to stay in business.5-23 No. There is a confusion between total fixed costs and unit fixed costs. Increasing sales volume will decrease unit fixed costs, but not total fixed costs. This assumes that the volume increase results in operating levels that are still within the relevant range.5-24 Managers generally find contribution margin income statements more useful, especially if they are concerned with short-term results. The contribution margin statement provides information on the immediate profit impact of increases or decreases in sales.5-25 Marginal cost is the additional cost resulting from producing and selling one additional unit. It changes as production volume changes. With a given fixed capacity, marginal cost generally decreases up to a point and then increases. Variable cost is the accountant's approximation to marginal cost. It remains constant over the relevant range of volume. Because the difference between these two costs often is not material (within the relevant range), in such cases we can use the variable-cost estimate of marginal cost for decision-making purposes.5-26 Pricing decisions must be made within legal constraints. These laws help protect companies from predatory and discriminatory pricing. Predatory pricing involves setting prices so low that they drive competitors out of the market. Discriminatory pricing is charging different prices to different customers for the same product or service.5-27 Managers are directly involved in the research and development and the design functions. During the initial product research phase, managers often are involved in surveys, focus groups (with major airlines), and other market research activities to explore the potential for a new airplane. During process and product design, managers help with such tasks as negotiations with suppliers and cost analyses. Production managers provide input regarding cost reduction ideas. Marketing managers provide input regarding customer needs (a super large plane with more than 500 seats versus more medium-sized planes that can serve more markets). Distribution managers provide input regarding the costs of various channels of distribution. Finally, managers involved with customer relations provide input regarding the likely cost-to-serve profile for expected customers for a new product.5-28 (5 min.)All the data given are historical costs. Most students will identify the $5 and $7 prices as relevant. They will also declare that the $3 price of popcorn is irrelevant. Press them to see that the relevant admission prices are expected future costs that will differ between the alternatives. The past prices are being used as a basis for predicting the future prices.Similarly, the past prices of popcorn were not different. Hence, they are regarded as irrelevant under the assumption that the future prices will not differ.5-29 (20 min.) Some students may forget to apply the 10% wage rate increase to both alternatives.(1) Historical direct materials were $5.00per unit; direct labor was $6.00 per unit. (2) (2) Direct material costs are expected tofall by 10%, or 50¢ per unit. Directlabor costs are affected by a 10% rateincrease and a 5% increase in labortime if the new material is used.(3) (3) Cost comparisons per unit:Old NewMaterial MaterialDirect material $ 5.00 $ 4.50Direct labor$6.00 × 110% 6.60$6.00×110%×105% 6.93Expected futurecost $11.60 $11.43(4) The chosen action is implemented,and the evaluation of performance be-comes a principal source of feedback.This historical information aids thedecision process (prediction, decision,and implementation) of future decisions.5-30 (10 min.)Relevant costs are the future costs that differ between alternatives. Among the irrelevant costs are the cost of tickets to the symphony, automobile costs, and baby-sitting cost for the first four hours. The relevant costs are:Symphony Game Difference Tickets, 2 @ $20 each $0 $40 $40Parking 0 6 6Baby-sitting, 1 extrahour @ $7 0 7 7Total $0 $53 $53 The baseball game is $53 more costly to the Petrocelis than is the symphony.5-31 (10 min.) This is a basic exercise. Answers are in thousands of dollars.1. 200 + 200 + 170 = 5702. 800 - 570 = 2303. 230 - 150 = 804. 570 – 200 = 370; or 200 + 170 = 3705-32 (10-15 min.) This is a basic exercise.Sales ¥950Variable expenses:Direct materials ¥290Direct labor 160Variable factory overhead 60(a) Variable manufacturing cost ofgoods sold ¥510Variable selling and admin. expenses 100Total variable expenses 610(b) Contribution margin ¥340Fixed expenses:Fixed factory overhead ¥120Fixed selling and administrativeexpenses 45 165(c) Operating income ¥ 1755-33 (15-20 min.)This is a straightforward exercise in basic terms and relationships. To fill all theblanks, both absorption and contribution income statements must be prepared. Data arein millions of dollars. Required answers are in italics.Absorption ContributionApproach Approach Sales $920 $920 Direct materials used $350 $350Direct labor 210 210Variable indirectmanufacturing costs 100 100f. Variable manufacturing cost ofgoods sold 660 Variable selling and administrativeexpenses 90 Total variable expenses 750 k. Contribution margin 170 Fixed factory overhead 50 50g. Manufacturing cost of goods sold 710j. Gross profit 210Fixed selling and administrativeexpenses 80 80 130 Variable selling and administrativeexpenses 90 170Operating income $ 40 $ 405-34 (10-20 min.) Answers are in thousands of rands (ZAR).Prime costs = Direct material + Direct labor600 = 370 + DLDL = 230The body of a model income statement follows. The computations are explainedfor each item that was originally blank. Numbers given in the problem are in bold.Sales, 780 + 120 ZAR900Direct materials ZAR370Direct labor, 600 - 370 230Factory overhead, 780 - (370 + 230) 180Manufacturing cost of goods sold 780Gross margin ZAR120Selling and administrative expenses* 100Operating income ZAR 20*120 - 205-35 (15-20 min.) The data are placed in the format of the income statement, and the unknowns are computed as shown:Sales $890 Variable expensesDirect materials $150Direct labor 170Variable indirect manufacturing 110Variable manufacturing cost of goods sold 430 1 Variable selling and administrative expenses 260 2Total variable expenses (890 - 200) 690Contribution margin 200 Fixed expensesFixed indirect manufacturing $ 90 3Fixed selling and administrative expenses 100 190 Operating income $ 10 1150 + 170 + 110 = 4302890 - 200 = 690; 690 - 430 = 2603Total fixed expenses = 200 - 10 = 190Fixed indirect manufacturing = 190 - 100 = 905-36 (10-15 min.)1. Operating income would increase by $300 if the order is accepted.Without Effect of WithSpecial Special SpecialOrder Order Order Units 2,000 100 2,100 Sales $36,000 $1,500 $37,500 Purchase cost 20,000 1,000 21,000 Variable printing cost 4,000 200 4,200 Total variable cost 24,000 1,200 25,200 Contribution margin 12,000 300 12,300 Fixed cost 8,000 0 8,000 Operating income $ 4,000 $ 300 $ 4,300 2. If maximizing operating income in the short run were the only goal, the ordershould be accepted. However, if qualitative considerations favoring rejection are worth more than the $300 increase in operating income, the manager wouldreject the offer. For example, accepting the offer from F. C. Kitsap may generate similar offers from other clubs who now willingly pay the $18 normal price.Lost profits on such business might more than offset the $300 gain on this sale.On the other hand, this might be a way of gaining F. C. Kitsap as a regularcustomer who will then buy other items that generate a profit well in excess ofthe $300.。

会计英语课后题答案Answer for lesson5

5.1 Select the best answer for each of the following unrelated items1.A2. A3.D4. B5.C6. D7. B0.20 x Prime cost = Direct labor0.20 x Prime cost = $13,000Prime cost = $65,000Prime cost = Direct materials + Direct labor$65,000 = Direct materials + $13,000Direct materials = $52,0008. A0.25 x Conversion costs = Direct labor0.75 x Conversion costs = Manufacturing overhead0.75 x Conversion costs = $45,000Conversion costs = $60,000Conversion costs = Direct labor + Manufacturing overhead$60,000 = Direct labor + $45,000Direct labor = $15,0009.D10. D11.A12. A13.D14. B15.C16. D17. DVariable cost = Change in cost Change in activity= ($11,250 - $9,000) (11,000 - 8,000) = $0.75Fixed cost element = Total cost - Variable cost element= $11,250 - ($0.75 x 11,000) = $3,000Therefore, the cost formula for total shipping cost is $3,000 per period plus $0.75 per pound shipped, or Y = $3,000 + $0.75X.At an activity level of 9,000 pounds shipped, total cost is estimated to be:Y = $3,000 + ($0.75 x 9,000) = $9,75018.C19. D20.C5.2 A partial listing of costs incurred at Rust Corporation during August appears below:Direct materials $ 135,000Utilities, factory $ 11,000Sales commissions $ 69,000Administrative salaries $ 101,000Indirect labour $ 29,000Advertising $ 94,000Depreciation of production equipment $ 31,000Direct labour $ 73,000Depreciation of administrative equipment $ 40,000Required:1. What is the total amount of product cost listed above? Show your work.2. What is the total amount of period cost listed above? Show your work.Solution: 1. Product costs consist of direct materials, direct labor, and manufacturing overhead:25.3 Dinius Corporation has provided the following data for the month of December: Raw material purchases $ 55,000Direct labour cost $ 22,000Manufacturing overhead $ 68,000Inventories:Beginning EndingRaw materials $ 25,000 $ 27,000Work in process $ 16,000 $ 22,000Finished goods $ 39,000 $ 25,000Required:Prepare a Schedule of Cost of Goods Manufactured for December.Solution:Schedule of Cost of Goods Manufactured5.4 Lavell Corporation reported the following data for the month of February: Inventories:Beginning EndingRaw materials $ 34,000 $ 37,000Work in process $ 11,000 $ 23,000Finished goods $ 31,000 $ 56,000Additional information:Sales $ 250,000Raw materials purchases $ 66,000Direct labour cost $ 38,000 Manufacturing overhead $ 70,000Selling expense $ 19,000 Administrative expense $ 37,000Required:1. What is the total amount of manufacturing cost for February? Show your work.2. What is the cost of goods manufactured for February? Show your work.3. What is the cost of goods sold for February? Show your work.4. What is the net operating income for February? Show your work.Solution:1. What is the total amount of manufacturing cost for February? Show your work.2. What is the cost of goods manufactured for February? Show your work.3. What is the cost of goods sold for February? Show your work.4. What is the net operating income for February?5.5 In July, Neidich Inc., a merchandising company, had sales of $295,000, selling expenses of $24,000, and administrative expenses of $29,000. The cost of merchandise purchased during the month was $215,000. The beginning balance in the merchandise inventory account was $25,000 and the ending balance was $30,000. Required:Prepare an Income Statement in good form for July.Solution:5.6 At an activity level of 2,400 units, Koter Corporation's total variable cost is $118,008 and its total fixed cost is $9,000.Required:For the activity level of 2,500 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.Solution:5.7 Parter Inc., operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 110,000 miles per year the operating cost is 7.5 cents per mile. This cost increases to 8.75 cents per mile if a truck is driven 60,000 miles per year.Required:Estimate the cost formula for truck operating costs using the high-low method. Solution:Total cost at high level of activity: 110,000 x $0.075 = $8,250Total cost at low level of activity: 60,000 x $0.0875 = $5,250Variable cost = Change in cost Change in activity= $3,000 50,000 miles = $0.06 per mileFixed cost element = $8,250 - ($0.06 per mile x 110,000 miles) = $1,650The cost formula is $1,650 per year plus $0.06 per mile.5.8 Siber Inc., a manufacturing company, has provided the following financial data for October:Sales $ 590,000Variable production expense $ 106,000Variable selling expense $ 18,000Variable administrative expense $ 78,000Fixed production expense $ 145,000Fixed selling expense $ 72,000Fixed administrative expense $ 132,000The company had no beginning or ending inventories.Required:a. Prepare an income statement in good form for October using the traditional approach.b. Prepare an income statement in good form for October using the contribution approach.Solution:5.9 Eag Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years:Variable costing net operating income, last year $84,400Variable costing net operating income, this year $87,900Increase in ending inventory, last year 1,300Increase in ending inventory, this year 0Fixed manufacturing overhead cost per unit $2Required:1. Calculate the absorption costing net operating income for last year.2. Calculate the absorption costing net operating income for this year.Solution:5.10 Data concerning Emma Corporation's single product appear below:Per Unit Percent of SalesSelling price $130 100%Variable expenses $26 20%Contribution margin $104 80%Fixed expenses are $650,000 per month. The company is currently selling 8,000 units per month.Required:The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $79,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. Calculate the overall effect on the company's monthly net operating income of this change.Solution:5.11 The following monthly budgeted data are available for the International company:Product A Product B Product CSelling price $500,000 $300,000 $900,000 Variable expenses $300,000 $210,000 $720,000 Contribution margin $200,000 $90,000 $180,000 Budgeted net operating income for the month is $220,000.Required:1. Calculate the break-even dollar sales for the month.2. Calculate the margin of safety.3. Calculate the operating leverage.Solution:1. Break-even salesDollar sales to break even = Fixed ExpensesCM Ratio = $250,000 0.28 = $892,8572. Margin of safety= Total sales - Break-even sales = $1,700,000 - $892,857 = $807,1433. Operating leverage = Contribution marginNet operating income = $470,000 $220,000 = 2.145.12 Houn Corporation produces and sells a single product. Data concerning that product appear below:Selling price per unit $120.00Variable expense per unit $50.40Fixed expense per month $257,520Required:1. Assume the company's monthly target profit is $20,880. Calculate the unit sales to attain that target profit.2. Assume the company's monthly target profit is $6,960. Calculate the dollar sales to attain that target profit.Solution:1. Unit sales to attain target profit = (Target profit + Fixed expenses)/Unit CM = ($257,520 + $20,880)/$69.60 = 4,0002. Dollar sales to attain target profit = (Target profit + Fixed expenses)/CM ratio = ($257,520 + $6,960)/0.58 = $456,000Product A Product B Product C。

Managerial Accounting Study Guide

Managerial Accounting Study GuideDisclaimer: This guide does not include all the material that will be covered on the exam. However, the listed items will direct your attention to the main ideas that will be the source for multiple-choice questions. Some of the multiple choice questions may take the form of small calculation problems.Chapter 1:1. Managerial accounting reports provide decision-making information for internal users. The reports need not follow GAAP, and the reports often focus on the future.2. The controller is the top management accountant in a company.3. Under Total Quality Management, a business strives to improve performance in conjunction with goal setting.Chapter 2:1. Manufacturing or product costs have three components: direct materials, direct labor, and manufacturing overhead. Know what it included in each component.2. Direct costs are costs that can be traced conveniently and economically to a cost object. Indirect costs are not traced directly to a certain cost object.3. Selling and general/administration costs are nonmanufacturing or period costs that are reported on the Income Statement. These costs are used to generate revenues during the current period.4. A manufacturer has three inventory accounts: Raw Materials, Work-in-Process, and Finished Goods. These inventory accounts are assets that are reported on the Balance Sheet.5. A cost object is any product, service, or department which receives allocated costs to determine its cost.6. Sunk costs are past costs that are not relevant for present decision-making purposes.7. The cost of goods manufacturing is the cost of the items that are completed and transferred to Finished Goods during a period.8. Review the cost of goods manufactured formula on page 65 and the cost of goods formula on page 63.Chapter 3:1. There are two basic product-costing systems: job order costing and process costing.2. A job order costing system is used by a manufacturer who produces unique or special-order products.3. Process costing system is used by a manufacturer in a continuous flow or assembly line environment.4. Product costs flow from Raw Materials to Work-in-Process to Finished Goods to Cost of Goods Sold.5. Direct material costs, direct labor costs, and manufacturing overhead costs are added toa Work-in-Process account during production.6. A job order cost card is used in a job order costing system to record the direct materials, direct labor, and overhead costs associated with a specific job. The product unit cost is the total job cost divided by the number of units produced.7. Overhead is allocated or assigned or applied to jobs using an estimated overhead allocation rate.8. Most companies prepare an estimated allocation rate. This estimated overhead allocation rate is called the predetermined overhead rate. It is usually calculated for a year’s time period.9. Predetermined Overhead Rate = Estimated Factory Overhead/Estimated Allocation Base.10. The selected allocation base should be associated with the overhead costs. Common allocation bases are direct labor hours, direct labor costs, and machine hours.11. Usually, the amount of applied overhead will not equal the actual overhead at the end of the year since the applied overhead is based on estimates.12. If the applied overhead is greater than the actual overhead, the difference is called overapplied overhead. If the actual overhead is larger, the difference is called underapplied overhead.18. A just-in-time (JIT) manufacturing system works to reduce the inventory levels of a manufacturer.Chapter 4:1. Cost allocation is the process of assigning indirect costs.2. A cost pool is the total of costs that is allocated by an allocation base (activity driver). The individual costs in a cost pool should be similar or homogeneous.3. An allocation rate is calculated by dividing the budgeted cost pool by the estimated activity driver rate (allocation base). The allocated cost is determined by multiplying the actual usage of the allocation base by the allocation rate.4. Traditional cost allocation systems have used one or two cost pools that have used production volume allocation bases.5. Since the traditional cost allocation systems have used few pools and production bases, product prices are often not accurate.6. Activity-based costing uses many cost pools with different allocation bases. The cost pool rate is the pool costs divided by the cost driver (activity or allocation base).7. When an activity-based costing system is implemented, the accuracy of costing is improved. Usually, the costs of high volume products decrease while the costs of low volume products increase.Chapter 5:1. A process costing system does not use job cost cards.2. In a process cost system, the product costs flow through multiple departments3. Direct materials, direct labor, and overhead costs for each department are accumulated in that department's Work-in-Process account.4. Costs flow from one department’s Work-in-Process account to the next department’s Work-in-Process account. These costs are called transferred-in costs.5. Conversion costs include direct labor and manufacturing overhead costs.6. A process costing system uses equivalent units to calculate an average unit cost.7. Equivalent units measure production in terms of whole units. Know how to calculate equivalent units.8. A production cost report provides information summarizing the units for which departments are accountable and the costs charged to the departments. In particular, it reconciles the units and the costs and calculates cost per equivalent unit.Chapter 6:1. Variable costs are costs that change in total with the level of business activity. The variable cost per unit remains constant.2. Fixed costs are costs that do not change in total with the level of business activity. However, the fixed cost per unit varies inversely with changes in the level of business activity.3. Mixed costs contain both fixed and variable cost components.4. The high-low method can be used to estimate the variable and fixed costs in a mixed cost.5. Full costing (absorption costing) is required by GAAP. Direct labor, direct materials, variable manufacturing overhead, and fixed manufacturing overhead are included in the cost of inventory.6. Variable costing is used internally for decision-making purposes. Direct labor, direct materials, and variable manufacturing overhead are included in the inventory costs.7. The treatment of fixed manufacturing overhead is the only difference between full and variable costing. Fixed manufacturing overhead is an expense on the income statement in the period incurred under variable costing.8. When the units produced equals the units sold, the net income under full costing equals the net income under variable costing.9. When the units produced are greater than the units sold, the net income under full costing is greater than the net income under variable costing.10. When the units produced are less than the units sold, the net income under full costing is less than the net income under variable costing.11. A variable costing income statement reports the contribution margin. A full costing income statement reports the gross margin.12. The full costing method can be used by managers to manipulate performance results. Chapter 7:1. The break-even point is the number of units that must be sold or amount of sales revenue that must generated to have no profit or no loss. In other words, the net income is zero.2. The profit equation is: Profit = Sales less Total Variable Costs less Total Fixed Costs.3. The margin of safety is the difference between the expected sales and the break-even sales.4. The contribution margin per unit is equal to the sales price per unit less the variable costs per unit.5. The breakeven in units is equal to the Total Fixed Costs divided by the contribution margin in units. Know how to calculate the breakeven point.6. The required number of units that must be sold in order to achieve a specified profit level (operating income) is equal to the sum of the Total Fixed Costs plus the Operating Income (Profit Level) divided by the contribution margin in units. Know how to calculate the sales in units to achieve a desired profit level.7. An increase in fixed costs or variable costs will increase the break-even point. An increase in sales price will decrease the break-even point.8. Operating leverage refers to the cost structure of the business. A business with high percentage of fixed costs is considered to have a high operating leverage.Chapter 8:1. Decision making is based on incremental analysis which investigates incremental revenues and incremental costs. Incremental costs are often called differential costs or relevant costs.2. Incremental analysis investigates the differences in revenues and costs for different decision alternatives.3. Sunk costs are not relevant in the decision-making process. Avoidable costs are relevant costs in the decision-making process.4. Opportunity costs are the benefits that are lost when one alternative is chosen over another alternative.5. Common costs are costs that are not directly traceable to a product line or department. Instead, these costs are allocated to the individual product lines or departments. If one product line or department is dropped, the common costs are allocated to the remaining product lines or departments.6. A product line should be dropped only when the total net income of a business will increase if the product line is eliminated. Usually the product line should be retained if contribution margin is greater than the avoidable costs (cost savings).7. Products should be processed further when the incremental revenue from the additional processing is greater than the additional costs of the additional processing. The joint costs are sunk costs in an additional processing decision.8. When there is a resource constraint, a business should strive for the highest contribution margin per unit of the constraint.9. A supplier or vendor is paid for the cost of production plus a fixed amount (or percentage of cost) under a cost-plus contract.Chapter 9:1. A budget is a formal document that outlines a financial plan for achieving goals. A business is not required to prepare budgets.2. Budgets are used to increase communication and coordination and to evaluate performance.3. When budgets are prepared using zero-based budgeting, all budgeted amounts are justified for each budget period.4. The master budget is a collection budgets such the sales budget, the production budget, and the direct materials budget.5. The sales or revenue budget is the first budget prepared in the master budget sequence.6. For a manufacturer, the production budget is the second budget prepared. Productionin units is equal to the budgeted sales in units plus the desired ending inventory in units less the beginning inventory in units. Know how to calculate a production budget.7. After the production budget is prepared, direct materials and direct labor budgets are prepared. Know how to calculate direct materials purchases and direct labor requirements.8. Cash collections (receipts) and cash payments (disbursements) budgets provide information for determining the cash balance, the amount of excess cash for investment, and the amount of cash available for capital acquisitions. Know how to calculate cash receipts from sales and cash disbursements for purchases.9. A budget variance is the difference between the budgeted and actual amount.Chapter 10:1. A decentralized business gives decision-making authority to the mangers of its subunits.2. Two advantages of decentralization are better information at the manager level and quicker response time at the manager level. Additionally, decentralization motivates and trains managers.3. Two disadvantages of decentralization are a duplication of activities at the different subunits and a lack of goal congruence.4. Under responsibility accounting, managers are responsible for the revenues and costs that are under their control. A manager should be accountable for only controllable costs.5. The subunits of a business often are referred to as responsibility centers. Three common responsibility centers are cost centers, profit centers, and investment centers.6. A manager of a cost center is responsible for controlling costs in that subunit. A manager of a profit center is responsible for generating revenues and controlling costs. A manager of an investment center is responsible for investing assets, generating revenues, and controlling costs.7. The return on investment (ROI) is used to evaluate the performance of investment centers. ROI is a better than income as a performance measure for an investment center because it compares the amount of income to the amount of investment.8. However, ROI evaluation can lead to underinvestment when managers reject projects that have returns greater than the required return but that will lower the ROI. Evaluation in terms of profit can lead to overinvestment.9. ROI is income divided by total assets (invested capital). Know how to calculate ROI.10. ROI can be separated into a sales margin component and capital (investment) turnover component.11. Sales margin is income divided by sales. Know how to calculate profit margin.12. Capital (Investment) turnover is sales divided by total assets (invested capital). Know how to calculate the capital turnover.13. Residual income is the net operating income less the required profit.Know how to calculate residual income.14. The balanced scorecard is another method to evaluate performance. The balanced scorecard considers financial, customer, internal process and growth measures.15. Flexible budgets can be adjusted for various activity or production levels16. Managers use the principle of management by exception to investigate the difference between projected results and actual results. Under management by exception, minor differences are not investigated.Chapter 11:1. Standards are costs that a business sets as goals. Standards can be set for direct materials, direct labor, and manufacturing overhead.2. Attainable standards are goals that can be reached with reasonable effort. Attainable standards are not set on perfect performance.3. A budgeted cost can be calculated by multiplying the standard cost by the number of budgeted units.4. Generally, manufacturers set standards for price and quantity for direct materials andfor rate and efficiency for direct labor.5. Cost variances are the difference between the standard cost and the actual cost.6. If the actual cost is greater than the standard cost, the variance is unfavorable. If the actual cost is less than the standard cost, the variance is favorable.7. A volume variance results from an actual production that is different from the estimated production level.8. Different departments have responsibility for the different variances. For example, the Purchasing Department usually would be responsible for the direct materials price variance.Chapter 12:1. Capital expenditures decisions also are called capital budgeting decisions or capital investment decisions. These decisions involve the acquisition of long-term assets.2. Both the net present value method and the internal rate of return method use the time value of money in the evaluation of capital investments.3. The net present value method is the sum of the present values of the cash inflows and cash outflows from an investment.4. A positive net present value indicates that the rate of return is greater than the required rate of required.5. The internal rate of return is the rate of return that results in a net present value of zero.6. If the internal rate of return is greater than the required rate of return (the cost of capital), the investment should be accepted.7. The payback period is the length of time needed to recover the cost of an investment. Know how to calculate the payback period8. The payback method does not use the time value of money and does not consider cash flows after the payback date.Chapter 14:1. Financial statement analysis provides information for decision-making. The information can be used to control operations, to assess the appearance of the company toinvestors or creditors, and to assess the financial condition of vendors, customers, and business partners.2. The Balance Sheet reports assets, liabilities, and owners’ equity. The Income Statement reports revenues and expenses. The Statement of Cash Flows reports cash inflows and outflows from operating, investing, and financing activities.3. Horizontal analysis computes the change in each financial statement item both indollar amount and percentage change. Using comparative financial statements, the amount of change is divided by the base year amount to determine the percentage change.4. Vertical Analysis highlights the relationship between the items on a financial statement on a percentage basis. On the balance sheet, total assets (or total stockholders' equity and liabilities) are set at 100%. Net sales or net revenue is set at 100% on the income statement. All items on a statement are divided by the 100% standard for that statement. Thus, a common-size statement is produced.5. Earnings per share is a profitability ratio. Earnings per share is calculated by dividing the net income less preferred dividends by the number of shares of outstanding common Stock6. Another profitability ratio, the price-earnings ratio, is the multiple of earnings that an investor pays for the stock. Earnings per share is calculated by dividing the market price per share divided by the earnings per share.7. Gross profit (gross margin) is equal to net sales less the cost of goods sold. The gross profit (gross margin) percentage is equal to gross profit (gross margin) divided by net sales.8. Turnover ratios are used to evaluate how efficiently assets are used. A higher number indicates a faster turnover and more efficiency.9. The accounts receivable turnover is determined by dividing net credit sales by average accounts receivable and the inventory turnover is determined by dividing cost of goods sold by average inventory.10. The current ratio, the quick ratio, and the debt-to-equity ratio are all debt related ratios that indicate the financing structure of the business and its ability to pays its debts. 11. The current ratio is equal to current assets divided by current liabilities.。

管理会计双语版总结

Favorable variance and unfavorable variance Management by exception
20
Chapter 10 : Standard Costing
Standards
Quantity and price standards
Ideal and practical standards
Chapter 9 : The Operating Budget
Performance report
Static budget Flexible budget Static budget variance
Sales volume variance Flexible budget variance
Contribution margin
total vs. per unit Contribution margin ratio
Break-even (in units and in dollars) Target profit (in units and in dollars)
Three formulas (page 136)
11
Sales
Variable Costs
Contribution Margin
Direct Material Direct Labor Variable Mfg. Variable S&A
Fixed Mfg. Fixed S&A
Profit
12
Sales
Cost of Good Sold
Gross Margin
Direct Material Direct Labor Variable Mfg. Fixed Mfg.

ACCAF5题型归类-costing

ACCAF5题型归类-costingABC1. compare the overhead allocations between the traditional methodsand ABC and explain the changes 【in practical issues 】●whether the allocations have changed a lot : overheads may be dominatedby one cost of which the cost driver is still the traditional basis (eg: labour hours) , thus no significant difference will result from this change●the major effect may be for one cost which carry a relatively highproportion of the quality control cost.●Some overheads may cause little change seemingly, but it hides the verybig difference in treatment, even though the proportion of this cost is minor .Review each of the overhead cost items in turn in terms of proportions in total overhead value, proportions of cost driver numbers2. discuss the reasons why ABC is more suitable in the modernmanufacturing environment than traditional methods 【in theory 】●traditional methods allocate overheads based on some volume-relatedmeasure of activity●in traditional business, indirect costs constituted a relatively smallproportion of total product costs●in modern manufacturing environment, indirect costs constituted arelatively high proportion of total product costs. 【shorter and more frequent production runs which increases the frequency of production line set-ups ; wide-spread use of computer control and automation in place of direct labour ; increase use of JIT and customer-led manufacture which lead to quality control costs and production planning costs forming a higher proportion of total costs; 】●activity and costs: traditional costing failed to consider the relationshipbetween costs, activities and products. In this way, the allocation may tranfer a disproportionate amount of costs to high volume products which in fact just consume fewer resource. Whereas ABC allows the overhead costs incurred by activities to be related to product cost using cost drivers derived from the activities.●improve cost control: by identifying and using more accurate and differentbut relevant cost drivers according to different activities, ABC can lead to more detailed product cost information. In this way, manager is able to seek to control costs by controlling the activities. in other words, ABC provides the manager with a more deep insight of how the costs occurred.【for example, can optimise the number of production runs in order to minimise set-up costs】●better information on product profitability: better decision, better pricing,better product promotion, better profitability;●activity-based budgeting: identify the required level of production andsupport activity , eliminate slackexplain the features in traditional environment and in modern environment respectivelygive the implications (advantages) of using ABC in a modern environment, quote some examples3. conditions under which the introduction of ABC is likely to be most effective :●general conditions: significant overheads to allocate between differentproducts ; the availability of sophisiticated information retrieval systems●product mix : at least two products●retrieval system : as the production systems are far more complex inmodern environment, it should be supported by some computer services to facilitate the monitoring of costs and capture more information .4. implementaion problems in introducing ABC at first time●lack of understanding, therefore not fully accepted●difficulty in identifying cost drivers: abtaining enough information (supportservices, like retrieval system—costly ), multi-cost drivers – subjective●lack of appropriate accounting records : a new set of accounting recordswhich may be not available , thus has to be installed – time consumingcan vary between different divisions●Finance director—determine the viability of a product : a product may turnout to be a loss in ABC, if it consumes more activities on the basis of more cost drivers, rather than just traditional labour hours. It is doubtful whether selling the product is viable.●Marketing director—determine the reliability of a contract : incrementalcost; it is the future that matters, rather than just those historic experience ●Manageing director – manage and control costs occurred: cost per activitymay not be constant as the activity is repeated 【a learning curve】; some costs do not vary with any cost drivers 【eg: depreciation】●Chairman – overall profit : this may be the same no matter which method isadopted.6. explain the concept of ABM●focus on underlying causes of costs, the activities of the business. Costsare collected and reported by activity, through the use of cost drivers in ABC.7. explain the concept of ABC●costing and monitoring of activities that involves tracing resourceconsumption and costing final outputs. ABC changed the focus of cost accumulation from processes to activities. Using different cost drivers to attach activity costs to outputs.●There is no attempt to split fixed and variable costs, or to use ―blanket‖absorption bases.●In this way, the final costs that are attributed to a product can give a fairerreflection of the consumption of resources by that product.●Pricing – sales strategy – performance measurement8. illustrate the benefits of ABM●better understanding of costs and their causes, leading to more effectivecost management ;●better planning leads to better use of resources;●highlights opportunities to reduce or eliminate non value-adding activities;●value-analysis process can improve product design, more efficient use ofmaterial and labour, which will all add to cost reductions but improve the quality of products;●identification of cost driver rates gives a fair and useful measure of the costefficiency which may be used in performance appraisal. 【exclude the uncontrollable activities which can not be the responsibility of the manager】9. illustrate the benefits of ABC●better insight into what drives overhead costs●better understanding of the production process●recognise costs that are not related to volume●more accurate product costs: concentrate on more profitable products●better informed decisions : pricing; budgeting;●help idenifty the value-added and non value added costs and eliminate thenon value-added ones to improve the efficiency●can be used not only for production costs but also non-production costs,like servicing costs●lead to a more accurate assessment of management : since the manager’sperformance should be judged on controllable factors. Thus if the assessment is involved with some uncontrollable factors, it will be unfair and demotivate to managers. ABC is often claimed to rest on a more accurate information base, rather than an arbitrary allocation. Thus, it allows to align management decisions with their consequences. Also, ABC tracks costs to the causes of the costs which they links to management decisions.10. illustrate the limitations of ABC●the process of setting up an ABC system will be complex, not easy tounderstand , thus may not be accepted fully●may not have the correct accounting records, to install the new systemmay be costly and time consuming●may not have the advanced retrieval system to capture enough informationfor monitoring and controlling; to install this system may incur far more costs than the benefits generated.●unlikely to relate all overheads to specific activities, some activities mayhave no cost drivers, or have more than one potential cost driver 【subjective to set one only】●there are still simplications and assumptions to be made in its application【choice of the cost drivers】life-cycle costing1. explain the nature of the product life cycle concept●introductory stage:launch 【pricing strategy】;based on customers’awareness and trial of the product; be accompanied by extensive marketing and promotion; a high level of set-up costs,R&D, product design costs will incur;●growth stage : after the product has been accepted; sales volumeincreases dramatically; unit costs fall as the economies of scale; price may fall; marketing and promotion will continue;●maturity stage: market saturation【reach the mass market】; sales growthslows; the initial fixed costs will be all recovered; marketing and distribution economies achieved; price competition and product differentation will start;figure out ways to extend the life of the product 【upgrade the product;launch product in another market segment; sell accessories 】●decline stage : the product will move towards obsolescence as it isreplaced by new and better alternatives; the product will be abandoned when the profit falls to an unacceptable level; promotion may help to clear the stock; a replacement product will need to develop which incurres new R&D and design costs;this question is just to outline the four main stages of a product’s life and state the features in each stage2. issues would be considered by managers in each stage●introduction stage: high unit costs, relatively low sales volume, thepotential problem of rejection by the market conspires to make this stage the riskest●growth stage: competitors will be prompted to enter the market; developmore new efficient production methods●maturity stage:price competition is at its keenest, the price will be thelowest; unit cost will be at the lowest level; the manufacturing processshould remain lean and well managed. Value analysis may be undertaken.●Decline stage: it is still possible to make profits for a short period before therapidly dwindling sales volumes. May withdraw the product from the market.Introduction stage should do with ―pricing strategy ―and target costing;growth stage could do with target costing and ABC to reduce the unit cost;maturity stage could do with target costing and ABC as well for value analysis to reach the lowest price.Almost every stage will do with ―marketing and advertising‖. Introduction stage – bring more attention from the potential customers; growth stage –increase brand awareness; maturity stage—increase brand loyalty and develop a sense of prestige/ quality; decline stage –promotion for products left to clear the stock.3. explain life cycle costing●profiling of cost over a product’s life, including the pre-production stage●tracking and accumulating the actual costs and revenues attributable toeach product from inception to abandonment. The final profitability of a given product is determined at the end of its life, while accumulated costs at any stage can be compared with life-cycle budgeted costs, product by product, for the purposes of planning and control.●If a high proportion of a product’s costs incurres at the very early stages ofthe life cycle,【eg:electronic goods—degisn costs】the accounting system should compare the revenues from a produc with all the costs inccurred over the entire product life cycle.4. benefits from life cycle costing●focus on the time to market as well as money which is a key factor togenerate profit●monitor over the life cycle which can respond to any deviation rapidly andstop a project early. Thus resources can be allocated in a more efficient way.●emphasie on timescale which enables the company to keen on recoveringthe fixed costs committed to at the early stages.●Pricing decisions can be based on total life-cycle costs rather than simplythe costs for the current period.●Reinforces the importance of tight control over locked-in costs,such asR&D , design costs, since it tracks and monitors cumulative costs●Trace costs of each product separately and compare with respectiveproduct revenues. In this way, each product’s profitability can be assessed separately.5. state what distinguish life cycle costing from traditional methods【compare both and state the difference】●many accounting systems are based on periodic accounts, reportingproduct profitability in isolated calendar-based amounts.●Recognition of the commitment needed over the entire life cycle of aproduct will generally lead to more effective resource allocation. That is, if the product is estimated to recover all the fixed costs incurred, it should be launched. Vice versa. Aslo, as most of the costs have been recorded at early ages, the activities taken by the company will be with the cost control.【target costing—cost control from an early stage】●Life cycle costing traces all costs related to a certain product to individualproducts over their entire life cycle, to aid comparison with product revenues. This leads to a more fair assessment of the products respectively.●Relationships between early decisions 【product design, productionprocess, and utlimate costs】can be identified and stressed for subsequent planning. For example, lower design costs may result in higher customer service costs. 【after sale services】State the features of traditional methods and state the features of life-cycle costing and stress its good points6. the impacts of the product life cycle on the business in an advancedmanufacturing environment●products in modern manufacturing environment have low labour content【less labour intensive】. The direct unit cost is relatively low.● A high proportion of the total cots will be in the form of initial development,design and production set-up costs, and ongoing fixed costs that incurred at very early stages.●In a competitive market, product life cycles are decreasing, initial costs aremore disproportionate.●The time scale between launch of one product and commencement ofdevelopment of its successor can be very short. 【electronic goods】●Thus, recognition of life cycles of products can lead to strategic planning ofnew development, marketing and finance. It enables the managers to keep pace with the fast moving market and make corresponding decisions to maximise long run profits. It forces the managers to take external focuses rather than just internal consideration. It emphaises the importance of cost control to lead the company to a more competing postion. It enables the managers to respond to the fast moving market rapidly.State the features of a modern manufacturing environment【fast moving;short life cycle; short time scale; low labour intensive but highoverheads;competitive and volatile】. Then discuss the good points of using life cycle costing in this environment7. life cycle costing and differentiate, highly customised products insmall batches●many new products will be developed with associated ―up front‖costs【initial costs】and are likely to have short life cycles●managers should remove the system to report profitability of products on aperiodic basis and trace costs and revenues on a product-by-product basis intead as each of them has a short life cycle. This will enable the managers to understand product line profitability by assessing the company’s success or failure in developing new products.8. maximise benefits over the life cycle●minimise time to the market : in order to gain dominance ,launch theproduct as far ahead of the competition as possible. 【penetration pricing may be adopted】●maximise the length of the life cycle : staggering the launch in differentmarkets, segmenting the product in the future, selling accessories to the product 【updating】●design costs out of the product : 80% or 90% of a product’s costs arecommitted at the early stage. In order to maximise benefit, the product must be designed in a cost conscious manner . target costing1. explain the concepts of target costing● a pull system : a product cost estimate derived by subtracting a desiredprofit margin from a competitive market price. This may be less than the planned initial product cost, but will be achieved at mature stage.●Product spectification: understanding the market place 【customeranalysis】: customers desire on products’ features, the price range they are willing to pay●Price and margin: determine the target price 【consider the competitorproducts and the market conditions – external analysis】and establish the profit margin●Target price: deduct the profit margin to reach the target cost●then, the product will be designed within a pre-determined cost ceiling【cost conscious: minimise the number of components but not compromise the quality; use common parts; extra features and accessories that may be included; packaging】●the management should accept the target cost and do everything withintheir power to ensure the cost is achieved.●Cost gap: Once the actual cost are different from the target cost, a costgap【shortfall】comes out. managers should figure out ways to close the gap. 【the cost gap is similar to the cost variances to some extent】●It is a complex process, involving the use of skilled engineers and a goodknowledge of the markets.●An excellent way of focusing management attention on the value addedand non-valude added tasks to reduce costs.2. close the cost gap – value analysis●review product features –customer analysis: eliminate the non valueadded features●review the whole supplier chain—questionnaires: identify areas of likelycost savings; potential suppliers; negotiation ability; the market price;●components—not to damage the perceived value : new suppliers; differentmaterials; efficiency improvement by reducing wastage or idle time;●assembly workers : grade of workers; automation; learning curve;motivation【work morale 】; better management; production procedures;●overheads : economies of scale; ABC; great use of internet;●team approach: open discussion within all the divisions to clear manyconflict and dysfunctional behaviors in different divisions; reach a measure that based on the company as a whole, rather than a single division●outsourcingaccording to the cost items occurred : materials—labour costs—overheads3. target costing and short life-cycle products●not quite cost effective as the products are short life-cycle and in smallquantities.4. benefits from target costing in a modern manufacturing environment●rapidly changing environment: customer requirements, economic factorsand technology can all change very fast.●Early external focus: The organistaion will have an early external focus toits product development. This enables the product to be more competent and more likely to success in a competitive market.●Customer needs: Only those features that are of value to customers will bedeveloped, which will result in more efficient use of resources.●Early cost control: Cost control will begin much earlier. From the designstage, the staff will be conscious of the costs in a proactive approach.●Lower costs: Costs per unit will be lower which enhances profitability.Target costing is able to reduce product cost by 20% to 40% as it takes into account the external environment.●Reduced the time taken to get a product to market, as it has an earlyexternal focus which help get things right first time. 【less delays to correct the decision】State the charactors of a modern environment and then state the features of target costing4. compare with standard costing●standard costs are too rigid for cost reduction and control.【they need to beset for a year at a time】. target costing is more flexible, so targets can be changed from month to month●standard costing focuses on internal costs while target costing takes intoaccount the competitive market and the price customers are prepared to pay. The organisation has to be outward-looking.●Target costing involves other techniques, such as value analysis, which willeliminate the inefficient part to reduce the cost.5. difficulties of using target costing in service industries●hard to determine a market driven price●the introduction of new products and services in service industries are farless frequently than in a manufacturing environment●the major cost of any new product or service is salaries which there islimited scope for substantial cost reduction.back-flush costing1. explain the concepts of back-flush costing●focuses upon output of an organisation and then works backwards whenallocating costs between cost of good sold and inventories 【cost do not mirror the flow of production through the production process, but are attached to output produced.】●conversion costs 【labour and production overheads】are attached toproducts only when they are completed. 【while traditional method is to allocate costs to physical cost units at every stage of their production】●it simplifies costing since it ignores both labour variances andwork-in-progress●in a perfect JIT environment, there would be no WIP at all, nor the amountof it will be negligible in quantity and value.●It simplifies the accounting records by avoiding the need to follow themovement of materials and WIP through the manufacturing process2. comment on its suitability●back-flush accounting is suited to a just in time philosophy●is employed where the overall cycle time is relatively short●and inventory levels are low. 【a great proportion of all input costs will beattributed to finished goods sold 】●and inventory value should be constant. 【little variation】●Also, the throughput should be fast: highly automated and reliableproduction methods●Reliable suppliers to deliver on time at the fixed price and fixed output3. benefits of backflush costing●save time and costs by reducing the amount of data required and thefrequency of data entry●simple to undertake4. benefits of traditional approach●inventories are easily valued at any stage and time●it affords a great degree of control over costs : detailed variance analysiscan be carried out●however, it is time consuming, requiring a great deal of detailed data,should be supported by large volumes of documentationthroughput costing1. explain the concept of throughput costing●throughput : the rate of production of a defined process over a statedperiod of time. sales revenue minus the cost of materials, which is regarded as the only variable cost in the short term ●assumptions: all manufacturing costs in the short term are largelypre-determined , and therefore are fixed.●Overall product profitability is determined by two factors: the rate at whichit contributes money, and the rate at which the factory spends money2. why the contribution in throughput accounting differs from that inmarginal costing●the main difference is what can be regarded as a variable cost.●The traditional marginal costing assumes that direct labour is a variablecost. Whereas throughput costing treats labour as a fixed cost 【pre-determined 】●Marginal csoting also tends to emphasise cost behavious and split theoverheads into fixed and variable parts. Whereas the throughput costing treat all of them as fixed in the short term●Throughput accounting use the total cost of direct materials purchased inthe period in the calculation of throughput, rather than the materials used.3. throughput ratio●identify the bottleneck resource 【only one】●calculate the throughput per bottleneck resource●calculate the operating cost 【only production costs but for all products】per hour 【all the available hours for all products】●throughput accounting ratio= return per bottleneck resource/ operatingcost per hour4. interpretation of throughput accounting ratio● a product is worth producing and selling so long as its throughput returnper bottleneck hour is greater than the production cost per hour . thus , throughput ratio is more than 1.●When the ratio is greater than 1, return exceeds cost and the focus shouldbe on improving the size of the ratio.●Improvement could be: increasing selling price or reducing material cost ;speeding up the productivity 【reducing the time to produce one unit】;reducting the overheads 【outsourcing; redesign;】;。

加里森第十四版管理会计课后题答案CH06

加里森第十四版管理会计课后题答案CH06Chapter 6Variable Costing and Segment Reporting: Tools for Management Solutions to Questions6-1 Absorption and variable costing differ in how they handle fixed manufacturing overhead. Under absorption costing, fixed manufacturing overhead is treated as a product cost and hence is an asset until products are sold. Undervariable costing, fixed manufacturing overhead is treated as a period cost and is expensed on the current period’s income statement. 6-2 Selling and administrative expenses are treated as period costs under both variable costing and absorption costing.6-3 Under absorption costing, fixedmanufacturing overhead costs are included in product costs, along with direct materials, direct labor, and variable manufacturing overhead. If some of the units are not sold by the end of the period, then they are carried into the next period as inventory. When the units are finally sold, the fixed manufacturing overhead cost that has been carried over with the units is included as part of that period’s cost of goods sold. 6-4 Absorption costing advocates argue that absorption costing does a better job of matching costs with revenues than variable costing. They argue that all manufacturing costs must be assigned to products to properly match the costs of producing units of product with the revenues from the units when they are sold. They believe that no distinction should be made between variable and fixed manufacturing costs for the purposes of matching costs and revenues. 6-5 Advocates of variable costing argue that fixedmanufacturing costs are not really the cost of any particular unit of product. If a unit ismade or not, the total fixed manufacturing costs will be exactly the same. Therefore, how can one say that these costs are part of the costs ofthe products? These costs are incurred to have the capacity to make products during aparticular period and should be charged against that period as period costs according to the matching principle.6-6 If production and sales are equal, net operating income should be the same under absorption and variable costing. When production equals sales, inventories do not increase or decrease and therefore underabsorption costing fixed manufacturing overhead cost cannot be deferred in inventory or released from inventory.6-7 If production exceeds sales, absorption costing will usually show higher net operating income than variable costing. When production exceeds sales, inventories increase and under absorption costing part of the fixedmanufacturing overhead cost of the currentperiod is deferred in inventory to the next period. In contrast, all of the fixed manufacturing overhead cost of the current period is immediately expensed under variable costing. 6-8 If fixed manufacturing overhead cost is released from inventory, then inventory levels must have decreased and therefore production must have been less than sales.6-9 Under absorption costing net operating income can be increased by simply increasing the level of production without any increase in sales. If production exceeds sales, units of product areadded to inventory. These units carry a portion of the current period’s fixedmanufacturing overhead costs into the inventory account, reducing the current period’s reported expenses and causing net operating income to increase.? The McGraw-Hill Companies, Inc., 2012. All rights reserved. Solutions Manual, Chapter 62716-10 Differences in reported net operating income between absorption and variable costing arise because of changing levels of inventory. In lean production, goods are produced strictly to customers’ orders. With production geared to sales, inventories are largely (or entirely) eliminated. If inventories are completely eliminated, they cannot change from one period to another and absorption costing and variable costing will report the same net operating income.6-11 A segment is any part or activity of an organization about which a manager seeks cost, revenue, or profit data. Examples of segments include departments, operations, sales territories, divisions, and product lines.6-12 Under the contribution approach, costs are assigned to a segment if and only if the costs are traceable to the segment (i.e., could be avoided if the segment were eliminated). Common costs are not allocated to segments under the contribution approach.6-13 A traceable cost of a segment is a cost that arises specifically because of the existence of that segment. If the segment were eliminated, the cost would disappear. A common cost, by contrast, is a cost that supports more than one segment, but is not traceable in whole or in part to any one of the segments. If the departments of acompany are treated as segments, then examples of the traceable costs of a department would include the salary of the department’s supervisor, depreciation of machines usedexclusively by the department, and the costs of supplies used by the department. Examples ofcommon costs would include the salary of the general counsel of the entire company, the lease cost of the headquarters building, corporate image advertising, and periodic depreciation of machines shared by several departments. 6-14 The contribution margin is the difference between sales revenue and variable expenses. The segment margin is the amount remaining after deducting traceable fixed expenses from the contribution margin. The contribution margin is useful as a planning tool for many decisions, particularly those in which fixed costs don’t change. The segment margin is useful in assessing the overall profitability of a segment. 6-15 If common costs were allocated tosegments, then the costs of segments would be overstated and their margins would beunderstated. As a consequence, some segments may appear to be unprofitable and managers may be tempted to eliminate them. If a segment were eliminated because of the existence of arbitrarily allocated common costs, the overall profit of the company would decline and the common cost that had been allocated to the segment would be reallocated to the remaining segments―making them appear less profitable. 6-16 There are often limits to how far down an organization a cost can be traced. Therefore, costs that are traceable to a segment maybecome common as that segment is divided into smaller segment units. For example, the costs of national TV and printadvertising might be traceable to a specific product line, but be a common cost of the geographic sales territories in which that product line is sold.? The McGraw-Hill Companies, Inc., 2012. All rights reserved. 272 Managerial Accounting, 14th EditionExercise 6-1 (15 minutes)1. Under absorption costing, all manufacturing costs (variable and fixed) are included in product costs. (All currency values are in thousands of rupees, denoted by R.)Direct materials .................................................................. R120 Direct labor ........................................................................ 140 Variable manufacturing overhead ........................................ 50 Fixed manufacturing o verhead (R600,000 ÷ 10,000 units) .... 60 Absorption costing unit product cost .................................... R370 2. Under variable costing, only the variable manufacturing costs are included in product costs. (All currency values are in thousands of rupees, denoted by R.) Direct materials .................................. R120 Direct labor ........................................ 140 Variable manufacturing overhead ........50 Variable costing unit product cost ........ R310Note that selling and administrative expenses are not treated as product costs under either absorption or variable costing. These expenses are always treated as period costs and are charged against the current period’s revenue.? The McGraw-Hill Companies, Inc., 2012. All rights reserved. Solutions Manual, Chapter 6273Exercise 6-2 (20 minutes)1. 2,000 units in ending inventory × R60 fixed manufacturing overhead per unit = R120,000.2. The variable costing income statement appears below:Sales ................................................. R4,000,000 Variable expenses: Variable cost of goods sold (8,000 units × R310 per unit) ........ R2,480,000 Variable selling and administrative (8,000 units × R20 per unit) .......... 160,000 2,640,000 Contribution margin ............................ 1,360,000 Fixed expenses: Fixed manufacturing overhead .......... 600,000 Fixed selling and administrative ........ 400,000 1,000,000 Net operating income ......................... R 360,000The difference in net operating income between variable and absorption costing can be explained by the deferral of fixed manufacturingoverhead cost in inventory that has taken place under the absorption costing approach. Note from part (1) that R120,000 of fixed manufacturing overhead cost has been deferred in inventory to the next period. Thus, net operating income under the absorption costing approach is R120,000 higher than it is under variable costing.? The McGraw-Hill Companies, Inc., 2012. All rights reserved. 274 Managerial Accounting, 14th EditionExercise 6-3 (20 minutes)1. Year 1 Year 2 Year 3 Beginning inventories .......... 180 150 160 Ending inventories ............... 150 160 200 Change in inventories ..........(30) 10 40 Fixed manufacturing overhead in beginning inventories (@$450 per unit) ................................. $ 81,000 $ 67,500 $72,000 Fixed manufacturing overhead in ending inventories (@$450 per unit) ................................. 67,500 72,000 90,000 Fixed manufacturing overhead deferred in (released from)inventories (@$450 per unit) ................................. $(13,500) $ 4,500 $ 18,000 Variable costing net operating income .............. $292,400 $269,200 $251,800 Add (deduct) fixedmanufacturing overhead cost deferred in (released from) inventory under absorption costing ............ (13,500) 4,500 18,000 Absorption costing net operating income .............. $278,900 $273,700 $269,800 2. Because absorption costing net operating income was greater than variable costing net operating income in Year 4, inventories must have increased during the year and hence, fixed manufacturing overhead was deferred in inventories. The amount of the deferral is just the difference between the two net operating incomes or $27,000 = $267,200 C $240,200.? The McGraw-Hill Companies, Inc., 2012. All rights reserved. Solutions Manual, Chapter 6275。

管理会计加里森 14版 Chapter1

1-5
Student Learning Objectives
As the result of this course you should be able to: • Understand how costs are accumulated and reported • Use these costs and associated revenues to make decisions about the best level of operations • Prepare a budget • Compare actual results to budgeted results and evaluate performance • Use the costs for decisions regarding outsourcing, pricing, sell or process further • Evaluate the results of these decisions
May 23
May 24 May 26
May 30 May 31 June 8
This chapter explains why managerial accounting is important to the future careers of all business students. It an
1-1
Managerial Accounting
Guohua Zhang Dr. Professor
Office: Jiageng Bld2 507-3 Telephone: 2180580 E-mail: ghzhang@ 978813962@ 2015.5
1-2
1-11

美国版的成本会计Chapter5

19
Batch-level costs Examples: Setups, Inspections, Purchase orders, Material handling, and Scrap, if related to batch.
11
Process Map detailed flow chart that indicates every step that goes into making or doing something. Value Chart should be constructed to identify all the stages and time spent in those stages from the beginning to end of the process.
15
ABC
Activity Base Costing (ABC)
Cost Driver Analysis
•
• • • •
All activities have cost drivers that consume resources and cause costs to be incurred. Cost driver analysis: investigates, quantifies, and explain the relationships of drivers to their related costs. Cost drivers are factors that have a direct cause-effect relationship to a cost Cost drivers maybe volume related (machine hours) or non volume related (# of setups or # of orders) A cost driver should be easy to understand, directly related to the activity being performed, and appropriate for performance measurement

变动成本计算和分部报告

6-17
Variable Costing Contribution Format Income Statement
Variable manufacturing costs only.
Sales (30,000 × $30) Less variable expenses: Variable cost of goods sold (30,000 × $10) Variable selling & administrative expenses (30,000 × $3) Total variable expenses Contribution margin Less fixed expenses: Fixed manufacturing overhead Fixed selling & administrative expenses Net operating income
Copyright © 2016 by McGraw-Hill Education. All rights reserved.
6-2
Learning Objective 6-1
Explain how variable costing differs from absorption costing and compute unit product costs under each method.
6-10
Variable Costing Contribution Format Income Statement All fixed
Variable manufacturing costs only
Sales (20,000 × $30) Less variable expenses: Variable cost of goods sold (20,000 × $10) Variable selling & administrative expenses (20,000 × $3) Total variable expenses Contribution margin Less fixed expenses: Fixed manufacturing overhead Fixed selling & administrative expenses Net operating income

国际贸易实务英文版参考答案

Chapter 1I .YES，Please refer to the 1st paragraph of the text.II. 流动性过剩自给自足经济资源直接投资国际收支易货交易出口退税倾销出口型经济增长东道国贸易差额贸易顺差／贸易逆差欧盟国际收支顺差／国际收支逆差有形贸易无形贸易货物贸易服务贸易excess liquidity self-sufficienteconomic resources direct investment balance of payments barterexport tax rebate dumpingexport-driven economic growth host country balance of tradefavorable/unfavorable balance of trade European Unionfavorable/unfavorable balance of payments visible trade invisible trade trade in goods trade in serv icesIIIThe chart above shows the U.S. imports from China, U.S. exports to China and the trade balance . The U.S. has a negative trade balance with China, and it has been growing. During the period fro m 1997 to 2003, imports from China have grown 244% while exports to China have grown 221%, indicating that the trade deficit is increasing. There had already been a sizeable trade balance defi cit with China in 1996, totaling $ 39.5 billion at the end of the year. IV1. Export goods are tangible goods sent out of countries.2. Trade in services are international earnings other than those derived from the exporting and i mporting of tangible goods.3. Import goods are tangible goods brought in.4. International trade is all business transactions that involve two or more countries.5. FDI is one t hat gives the investor a controlling interest in a foreign company.6. Investment is used primarily as financial means for a company to earn more money on its mo ney with relative safety. V1. International trade is the fair and deliberate exchange of goods and/or services across national boundaries. It concerns trade operations of both import and export and includes the purchase and s ale of both visible and invisible goods.2. In today's complex economic world, neither individuals nor nations are self-sufficient. Nation s participate in the international trade for many reasons. As to the economic reasons, no nation has all of the economic resources (land, labor and capital) that it needs to develop its economy and cu lture, and no country enjoys a particular item sufficient enough to meet its needs. As for the prefer ence reasons, international trade takes place because of innovation of style. Besides, every nation can specialize in a certain field and enjoy a comparative advantage in some particular area in term s of trade so that they need to do business with each other to make use of resources more efficientl y and effectively.3. In measuring the effectiveness of global trade, nations carefully follow two key indicators, na mely, balance of trade and balance of payments.4. FDI, the abbreviation form Foreign Direct Investment, means buying of permanent property a nd business in foreign nations. It occurs when acquisition of equity interest in a foreign company is trade. The great significance of FDI for China might be that: FDI solve the problem of capital s hortage for China so that China may spend the money on importing advanced equipment and technologies for its infrastructure, national supporting industry, key projects, etc.Chapter 2 I关税壁垒非关税壁垒从量税配额保护性关税市场失灵幼稚产业许可证制度财政关税政府采购贸易保护主义从价税最低限价本地采购规则增加内需Domestic content Red-tape barriers Export subsidies Binding quota Absolute quotas VERTariff-rate quotas Zero quota"Buy local" rules Tariff barriers non-tariff barriers specific duties quotaprotective tariff market failure infant industry licensing system Revenue tariffgovernment procurement trade protectionism Ad Valorem Duties floor price"buy local" rulesraise domestic demand 国内含量进口环节壁垒出口补贴绑定配额绝对配额自愿出口限制关税配额零配额本地采购原则II1. Protectionism means the deliberate use or encouragement of restrictions on imports to enable re latively inefficient domestic producers to compete successfully with foreign producers. 保护主义是指蓄意使用或鼓励进口限制，以此使本国相对效率低的产品能成功地和外国产品竞争。

第五章成本收益理论修改版

TP先以递增的比率增加， TVC先以递减的比率增加，
当MP达到最大值后，再以当MC达到最小值后，再
递减的比率增加。
以递增比率增加。
AP先递增到最大值 (AP=MP)，然后递减。
AVC先递减到最小值 (AVC =MC)，然后递增。
MP先递增，后递减，当等 MC先递减，后递增，当
于AP后，以比AP更快的等于AVC后，以比AVC更
成本，即可变投入带来的成本。
总固定成本、总可变成本和总成本
Total Fixed Cost[TFC] Total Variable Cost[TVC] Total Cost[TC] TFC——常数 TVC= f(Q), Q—产量 TC = TFC+TVC= TFC+ TVC(Q)
平均成本、边际成本和总成本
9
116.1 12.9 14.7
1000 2700 3700
8.6
23.3 31.9 20.4
10
130.0 13 13
1000 3000 4000
7.7
23.1 30.8 23.1
11
141.9 12.9 10.7
1000 3300 4300
7.0
23.3 30.3 28.0
12
151.2 12.6 7.8
第三节长期成本分析
一、长期总成本
[Long-Run Total Cost, LTC]
长期成本函数与短期成本函数的区别短期成本函数：
SC=SC(Q) Q——既定生产规模下的产量。长期成本函数：
LC=LC(Q) Q——代表一定生产规模的产量。
最优生产规模的选择与长期总成本曲线
C
STC1 STC2 STC3 LTC

chapter 5 measuring_cost

• • • • • Base Year is 2002. Basket of goods in 2002 costs $1,200. The same basket in 2004 costs $1,236. CPI = ($1,236/$1,200) × 100 = 103. Prices increased 3 percent between 2002 and 2004.
Measuring the Cost of Living
24
Copyright©2004 South-Western
Measuring the Cost of Living
• Inflation refers to a situation in which the economy’s overall price level is rising. • The inflation rate is the percentage change in the price level from the previous period.
Copyright©2004 South-Western
THE CONSUMER PRICE INDEX
• The consumer price index (CPI) is a measure of the overall cost of the goods and services bought by a typical consumer. • The Bureau of Labor Statistics reports the CPI each month. • It is used to monitor changes in the cost of living over time.

成本习性估计方法

Chapter 5
表5.3 全部成本法與直接成本法的成本歸類
成本類別直接原料成本
全部成本法產品成本
直接成本法產品成本
直接人工成本
產品成本
產品成本
變動製造費用
產品成本
產品成本
固定製造費用
產品成本
期間成本
變動銷售費用固定銷售費用
期間成本期間成本
期間成本期間成本
變動管理費用
期間成本
期間成本
固定管理費用
下列何種成本估計方法較為客觀且正確？
(A)帳戶分類法。 (B)散佈圖法。 (C)高低點法。 (D)迴歸分析法。
解答：(D)
Chapter 5
5.3 全部成本法與直接成本法
5.3.1 5.3.2 5.5.3 5.5.4
全部成本法直接成本法全部成本法的優缺點直接成本法的優缺點
Chapter 5
3.高低點法
Chapter 5
估計混合成本的另一種方法，是找出全組資料中，最高點的產量水準和成本，與最低點的產量水準和成本，由這兩點的資料來求出總固定成本和單位變動成本，這種方法稱為高低點法 (high-low method)。
圖5.9 高低點法的成本線
Chapter 5
5.2.2 迴歸分析
5.3.1 全部成本法
Chapter 5
全部成本法的由來，是因為產品成本的計算包括全部的製造成本，由直接原料成本、直接人工成本、變動製造費用和固定製造費用四項要素所組成。
圖5.10 全部成本法
Chapter 5
5.3.2 直接成本法
Chapter 5
直接成本法下，產品成本只包括直接原料成本、直接人工成本和變動製造費用三種，可說是變動製造成本。這類成本的增減，與生產數量呈正比方向變化。

管理会计双语第6章

SMART TOUCH LEARNING, INC Income Statement (Variable Costing)
The cost of a unit of product consists of direct materials, direct
labor, and both variable and fixed overhead. Variable and fixed selling and administrative expenses are treated as period costs and are deducted from revenue as incurred.
Absorption Direct material Direct labor Variable manufacturing OH Fixed manufacturing OH Total cost pet unit 2.4 4.0 0.6
Variable 2.4 4.0 0.6
Exhibit 6-2
Variable costing treats only those costs of production that
vary with output as product costs.
The cost of a unit of product consists of direct materials, direct
$0 700,000 700,000 70,000
$7 x 90,000 = $765,000
-630,000 450,000
-200,000 -150,000 $100,000
SMART TOUCH LEARNING, INC Income Statement (Absorption Costing)

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12,000
Net Income
$100,000 30,000 70,000
30,000 40,000
Effects of Production on Income for Full Versus Variable Costing: Clausen Tube
Facts: ▪ 5,000 units produced and sold ▪ Selling Price: $2,000 per unit ▪ Variable Manufacturing:
Clausen Tube Income Statement: Full Costing-Production > Sales
Sales
Less COGS
Gross Margin
Less Selling and Admin:
Selling
$292,200
Admin
500,000
Net Income
$ 9,600,000 5,280,000 4,320,000
Variable COGS Variable Selling Variable Admin. Contribution Margin Less Fixed: Fixed Mfg. Fixed Selling Fixed Admin Net Income
$20,000 10,000 5,000
10,000 8,000 7,000
Contribution Margin
5,300,000
Less Fixed:
Fixed Mfg. 1,200,000
Fixed Selling 100,000
Fixed Admin 500,000 1,800,000
Net Income
$3,500,000
Variable Costing Income Statement: Considerations
792,200 $3,528,000
Clausen Tube Income Statement: Variable Costing-Production > Sales
Sales
$ 9,600,000
Less Variable:
Variable COGS $4,320,000
Variable Selling
$100,000
35,000 65,000
25,000 40,000
Full (Absorption) Costing Income Statement Example
Sales
Less COGS
Gross Margin
Less Selling and Admin:
Selling
18,000
Admin
Clausen Tube Income Statement: Full Costing
Sales
Less COGS
Gross Margin
Less Selling and Admin:
Selling
$300,000
Admin
500,000
Net Income
$10,000,000 5,700,000 4,300,000
▪ Direct Materials: $600 per unit ▪ Direct Labor: $225 per unit ▪ Variable MFG: $75 per unit ▪ Fixed Manufacturing: $1,200,000 per year ▪ Selling Expense: $40 per unit variable plus $100,000 fixed. ▪ Administrative: $500,000 per year (fixed)
Impact of JIT on the Income Effects of Full Versus Variable Costing
1. JIT (Just-In-Time) inventory systems lead to low inventories.
2. Results in little difference between production and sales.
▪ Direct Materials: $600 per unit ▪ Direct Labor: $225 per unit ▪ Variable MFG: $75 per unit ▪ Fixed Manufacturing: $1,200,000 per year ▪ Selling Expense: $40 per unit variable plus $100,000 fixed. ▪ Administrative: $500,000 per year (fixed)
800,000 $3,500,000
Clausen Tube Income Statement: Variable Costing
Sales
$10,000,000
Less Variable:
Variable COGS $4,500,000
Variable Selling
and Admin
200,000
2. Decision making and “what-if” decisions are difficult because of the commingling of fixed and variable overhead.
3. Required for GAAP.
Variable Costing
5. Discuss the benefits of variable costing for internal reporting purposes
Full (Absorption) Costing
1. Full (Absorption) Costing includes: a. Direct material b. Direct labor c. Manufacturing overhead (both variable and fixed)
Summary of Effects of Production on Net Income
➢ If units produced = units sold, then no difference between full costing and variable costing net income.
and Admin
192,000
Contribution Margin
5,088,000
Less Fixed:
Fixed Mfg. 1,200,000
Fixed Selling 100,000
Fixed Admin 500,000 1,800,000
Net Income
$3,288,000
Variable Costing Income Statement: Considerations-Production > Sales
2. All costs, manufacturing, selling and administrative, are classified as either fixed or variable.
Variable Costing Income Statement Example
Sales Less Variable:
3. Fixed manufacturing costs, like depreciation, are inventoried until sold under full costing.
Variable Costing Income Statement
1. The format uses a contribution margin approach.
2. Prepare an income statement using variable costing.
3. Discuss the effect of production on full and variable costing income.
4. Explain the impact of JIT (just-in-time) on the difference between full and variable costing income.
1. Net income is higher under full costing than variable costing.
2. $3,528,000 vs. $3,288,000 = $240,000 3. The $240,000 difference is due to the
1,200 (6,000 – 4,800) additional units produced and unsold. 4. Fixed manufacturing $1,200,000 / 6,000 units x 1,200 units remaining = $240,000
Managerial Accounting by James Jiambalvo
Chapter 5: Variable Costing
Slides Prepared by: Scott Peterson Northern State University
Objectives
1. Explain the difference between full (absorption) and variable costing.
3. Not allowed for GAAP.
Differences Between Full (Absorption) and Variable Costing