2015年12月ACCA F5考试讲义精选

2015年12月ACCA F5考试讲义精选

2015年12月ACCA F5考试就要到了，为了方便大家更好地复习，小编在百度文库定期传一些ACCA考试资料，如有需要请关注财萃财经的百度文库。

Advanced costing method

Chapter learning objectives

Upon completion of this chapter you will be able to:

§explain what is meant by the term cost driver

§identify appropriate cost drivers under activity-based costing (ABC)

§calculate costs per driver and per unit using (ABC)

§compare ABC and traditional methods of overhead absorption based on production units, labour hours or machine hours.

§explain the implications of switching to ABC on pricing, performance management and decision making.

§ explain what is meant by the term ‘target cost’ in both manufacturing and service i ndustries.

§derive a target cost in both manufacturing and service industries.

§explain the difficulties of using target costing in service industries

§explain the implications of using target costing on pricing, cost control and perform ance management.

§describe the target cost gap.

§suggest how a target cost gap might be closed.

§ explain what is meant by the term ‘life-cycle costing’ in a manufacturing industry §identify the costs involved at different stages of the life-cycle.

§explain the implications of life-cycle costing on pricing, performance management a nd decision making.

§describe the process of back-flush accounting and contrast with traditional process a ccounting.

§explain, for a manufacturing business, the implications of back-flush accounting on performance management

§evaluate the decision to switch to back-flush accounting from traditional process co ntrol for a manufacturing business.

§explain throughput accounting and the throughput accounting ratio (TPAR), and calc ulate and interpret, a TPAR.

§suggest how a TPAR could be improved.

1 Activity based costing

1.1 Introduction –absorption cost

In F2 we saw how to determine a cost per unit for a product. Key issues of relevan ce here are the following:

Firms have the choice of two basic costing methods –marginal costing and absorptio n costing.

To enable this, all overheads must first be allocated/apportioned/reapportioned into pro duction departments, again using a suitable basis (e.g. rent on the basis of floor area).

Overhead expenses incurred/budgeted

Step 1: Overheads allocated or apportioned to cost centres using suitable bases Cost c entres (usually departments)

Step 2: Service centre costs reapportioned to production centres

Step 3: Overheads absorbed into units of production using an OAR (usually on the b asis of direct labour hours) output