成本与管理会计亨格瑞第13版英文版CA16
亨格瑞 成本与管理会计
亨格瑞成本与管理会计
亨格瑞（Hengrui）是一家知名的成本与管理会计公司。
他们专注于提供成本管理、绩效管理和策略管理等方面的解决方案和咨询服务。
成本管理是指通过对企业资源和活动的成本进行测算、分析和控制，来提高企业效益和降低成本的管理方法。
亨格瑞通过帮助企业建立
成本计划和预算、制定成本控制策略、优化成本结构等手段，帮助
企业降低成本、提高利润。
绩效管理是指通过设定绩效目标、制定绩效评价体系、实施绩效测
算和分析，来提高企业绩效和激励员工的管理方法。
亨格瑞通过设
计和实施绩效管理制度、开展绩效评估和考核、提供培训和改进方
案等手段，帮助企业优化绩效，实现战略目标。
策略管理是指通过对企业内外环境的分析和评估，制定和执行战略
计划，来提高企业竞争力和市场地位的管理方法。
亨格瑞通过帮助
企业制定战略目标、开展战略规划和执行、提供战略改善建议等手段，帮助企业提升竞争力，实现可持续发展。
亨格瑞拥有一支专业的团队，拥有丰富的成本与管理会计经验，能
够根据企业的实际情况，提供量身定制的解决方案，帮助企业提高
运营效率和盈利能力。
《成本与管理会计》教师手册 costacctg13_im_02
An Introduction To Cost TermsAnd PurposesTRANSITION NOTESThis chapter has been rewritten to place more emphasis on the role of managerial decisions.Exhibits have been changed so the students can more easily follow the concepts. This chapter continues building on the framework begun in Chapter 1, emphasizing (1) calculating the cost of products or other cost objects, (2) obtaining information for planning and control as well as performance evaluation, and (3) identifying relevant information for decision making. It introduces concepts essential to topics covered in later chapters.PROBLEM MATERIALCORRELATION CHART13th Edition 12thEdition13thEdition12thEdition16 16 29 2817 New 30 2918 18 31 3019 19 32 3120 20 33 3221 Revised 34 3322 22 35 3423 New 36 New24 New 37 3625 Revised 38 3726 Revised 39 New27 New 40 3928 27I. LEARNING OBJECTIVES1.Define and illustrate a cost object2.Distinguish between direct costs and indirect costs3.Explain variable costs and fixed costs4.Interpret unit costs cautiously5.Distinguish among manufacturing companies, merchandising companies, andservice-sector companies6.Describe the three categories of inventories commonly found in manufacturingcompanies27.Distinguish inventoriable costs from period costs8.Explain why product costs are computed in different ways for different purposes9.Describe a framework for cost accounting and cost managementII. CHAPTER SYNOPSISChapter 2 defines and explains important cost accounting terms and concepts that will be discussed in the following chapters. Understanding the concepts and terms discussed inthis chapter is a prerequisite to successfully completing the remaining chapters of the text.One guiding principle is that the term cost is a relative term, dependent both on the “costobject” chosen and the purpose for which cost is being calculated and reported.Costs are a critical element in most business decisions. Students also need to recognizethat companies pay particular attention to costs because every dollar in cost reduction isone more dollar of operating income, whereas one more dollar of sales does notnecessarily result in the same impact due to the additional costs that may be incurred ingenerating those sales.“Cost” is often actually “estimated cost” due to difficulties involved in cost tracing andallocation, relevant range issues, which cost method is used, and the cost-benefitapproach to measuring costs. Although there are certain standard costing and reportingmethods followed by all, companies calculate and report the same types of datadifferently depending on their industry and sector. Companies commonly operate in themerchandising, manufacturing, and service sectors.III. POINTS OF EMPHASIS1.Although terminology can be boring, it is important that the students grasp andunderstand the terms introduced in this chapter. They will have some familiaritywith some of the terms; however, remind them that these words may havemeanings that are different in a cost accounting context.2.The distinction between inventoriable (or product) cost and period cost is animportant one that students may have some trouble grasping, as they areaccustomed to treating items such as wages, rent, utilities, and the like asexpenses of the period. Likewise, the term conversion cost is one that should bemastered early on.IV. CHAPTER OUTLINETEACHING POINT. The terminology in this chapter is importantfor the student to gain an understanding early in the course. Incovering the chapter, it is very beneficial to repeatedly askquestions such as: (1) What is the cost object in the situation? (2)What costs can be traced? and (3) Which costs are allocated?1Define and illustrate a cost object. . . examples of cost objects are products,services, activities, processes, and customers1.1Cost is a resource sacrificed or forgone to achieve a specific objective.1.2Actual cost is the historical amount, or cost incurred, as distinguished frombudgeted cost, which is the planned (or future) amount of cost.1.3Cost object is the purpose for which costs are being measured. Stated anotherway, the cost object is anything for which a measurement of costs is desired. For example, this can be a product, an assembly line, a product line, or a department.TEACHING POINT. Discuss with the students the concept ofcost object. Use different examples of cost objects. Help themrelate the concept to their own lives. The cost of taking a tripduring spring break, the cost of a date, the cost of a collegeeducation, and the cost of a single class—all make goodtalking points.(Exhibit 2-1 illustrates examples of cost objects at BMW.)1.4Cost Accumulation describes the process of accumulating costs in someorganized manner through the accounting system. Following accumulation, costs are assigned to the chosen cost object.1.5The process of cost assignment involves tracing and allocating costs,depending on the type of cost involved.Refer to Quiz Question 12Distinguish between direct costs and indirect costs. . . costs that are traced directly to the cost objectand indirect costs. . . costs that are allocated to the cost object2.1 Direct costs of a cost object are costs that are related to the cost object and canbe traced to it in an economically feasible manner. Many costs may be able to betraced to the cost object, but it is not always practical to do so from a cost-benefitperspective.2.2 Direct cost categories include direct materials and direct manufacturing labor.Direct materials are materials that go into the production of the product. Directlabor is the wages paid to workers who spend time working on the product.2.3 Indirect costs of a cost object are related to the cost object but cannot be tracedin an economically feasible manner. These costs are frequently referred to asfactory overhead, manufacturing overhead, or some similar term. These costsinclude supervisor salaries, supplies, or other costs incurred in the factory that arenot direct materials or direct labor.TEACHING POINT. Make the observation that the same costmay be direct or indirect depending on the cost object. Usesome illustrations. For example, a line supervisor in a factorycould be a direct cost if the cost object were the particularassembly line, but would be indirect if the finished product isthe cost object.2.4 There are several factors that affect the classification of costs as direct or indirect.Three of these factors include:•Materiality of the cost. The smaller the amount of the cost, the lesslikely that it is economically feasible to trace that cost to a particular costobject.•Ease of gathering the information. For example bar-code technologyhas made it possible to trace just about any material used in themanufacturing process.•Design of operations. A cost used exclusively for a specific cost objectcan be readily traced.(Exhibit 2-2 illustrates the assignment of direct and indirectcosts at BMW.)TEACHING POINT. Use an object in the classroom, such as astool or chair. Place it on a desk or somewhere the students caneasily see it. Ask: “W hat are the materials used in manufacturingthe object?” Once a list of materials is compiled, then have thestudents determine which are direct material costs and whichare indirect costs.Refer to Quiz Question 2 Exercise 2-17only ID as Direct or IndirectExplain variable costs and fixed costs. . . the two basic ways in which costs behave3.1 In order to adequately predict costs, their behavior must be understood. From abehavioral view, costs are classified as fixed or variable.3.2 A variable cost changes in proportion with changes in the activity level. Forexample, if the number of units produced doubles, direct materials (a variablecost) would double in total. Note, however, that the variable cost per unit staysthe same.3.3 Fixed costs do not change due to changes in the activity level. If units produceddoubles, fixed costs remain the same in total. However, when expressed on a per-unit basis, fixed costs would decline with an increase in activity.(Exhibit 2-3 displays the cost behavior of variable and fixedcosts in total.)3.4 Costs are not inherently fixed or variable; it depends on the defined cost object.They may be variable with respect to level of activity and fixed for another.3.5 A cost driver is what causes a cost to be incurred. Stated another way there is acause-and-effect relationship between the level of activity of the cost driver andthe cost incurred.TEACHING POINT. Use several examples that will help thestudents grasp this concept. For example, their cost ofgasoline is determined largely by the number of miles driven.This can also be used to illustrate that most costs, in realityhave multiple drivers. Gas cost is also affected by type ofdriving, the horsepower of the engine, and other factors.3.6 Relevant range is the range of activity within which costs behave as predicted.Outside this level of activity, costs behave differently. This is not a concept thatcan be determined from a textbook; observation of the actual costs must be donein order to determine this range.(Exhibit 2-4 illustrates the relevant range of fixed costs atThomas Transport Company.)3.7 In dealing with costs, it is important to distinguish between behaviors of costswhen expressed as unit costs and when dealing with total costs. Generally,decision makers should think in terms of total cost. However, in many decisionanalysis situations, calculating unit costs is essential.Refer to Quiz Question 3 Exercises 2-17 (fixed and variable) and 2-23Interpret unit costs cautiously. . . for many decisions, managers should use totalcosts, not unit costs4.1 Unit costs (also called average costs) are normally used in making decisions suchas product mix and pricing. However, managers should usually think in terms oftotal costs for most decisions.4.2 Fixed costs, when expressed on a unit basis can be misleading. For example, iffixed costs are $25,000 and you manufacture 5.000 units, fixed costs are $5 perunit. When production increases to 6,250 units, total fixed costs remain at$25,000, but the unit cost declines to $4. Avoid using the higher unit cost whenproduction level changes.Refer to Quiz Question 4 Exercise 2-275Distinguish among manufacturing companies,merchandising companies, and service-sectorcompanies. . . different types of companies face differentaccounting issues5.1 Manufacturing-sector companies purchase materials and components andconvert them into finished products.5.2 Merchandising-sector companies purchase and sell tangible products withoutchanging their basis form. These companies are known as retailers.5.3 Service-sector companies provide services (intangibles). However, there isfrequently a tangible aspect to the service.TEACHING POINT. Have the students name companies thatare representative of each sector. Likely, they will correctlyidentify the proper sector for each company. Point out,however, that a service company may have a tangible aspect,such as the tax return as the end product of a tax preparationservice. Conversely, a merchandising company mayemphasize the intangibles. As the saying goes, “sell the sizzle,not the steak.”Refer to Quiz Question 56Describe the three categories of inventoriescommonly found in manufacturing companies. . . the categories are direct materials, work inprocess, and finished goods6.1 The accounting system of a manufacturing company is more complex than for amerchandising or service company. The main reason for this complexity is in theinventories held by a manufacturer. These companies will have three types ofinventory.•Direct Materials Inventory, or simply Materials Inventory, consists of materials being held by the company, ready to begin the conversionprocess into a finished product.•Work-in-Process Inventory represents product partially worked on but not yet completed. WIP is a representation of what is on the factory floor.•Finished Goods Inventory is product that has been completed and has not yet been sold.6.2 Merchandising companies purchase products in their completed form and do notmake changes in their basic form. An inventory account for a merchandisingcompany is called Merchandise Inventory, or simply Inventory.6.3 The Work-in-Process account will have three debits, representing the three typesof manufacturing costs.•Direct material costs are the costs of materials that become part of the cost object and can be traced to the cost object in an economicallyfeasible manner.•Direct manufacturing labor costs include compensation ofmanufacturing labor that can be traced to the cost object in aneconomically feasible manner. This includes labor of workers who workdirectly on the product.•Indirect manufacturing costs are all manufacturing costs that are not direct materials or direct labor. These costs are allocated rather thantraced. Other terms for this category include manufacturing overhead orfactory overhead costs.Refer to Quiz Question 67Differentiate inventoriable costs. . . assets when incurred, then cost of goods soldfrom period costs. . . expenses of the period when incurred7.1 Inventoriable costs are all costs of a product that are considered assets on thebalance sheet. These costs are direct materials, direct labor, and factory overhead.They become a part of the cost of the product and are assets until sold, when they become cost of goods sold. These are also known as product costs.7.2 Period costs are all costs on the income statement other than cost of goods sold.Period costs are treated as expenses of the period in which they are incurred.7.3 Prime cost is a term used to describe all direct costs or direct materials plusdirect labor.7.4 Conversion cost is direct materials plus factory overhead. It is the cost ofconverting the materials into a finished product.TEACHING POINT. Many companies with highly automatedmanufacturing operations have little or no direct labor. Thesecompanies often only use two categories of manufacturingcosts—direct materials and conversion cost.7.5 Costs can be measured in different ways. The management accountant shoulddefine and understand the ways costs are measured in a particular company orsituation.TEACHING POINT. Labor costs can include only the wagepaid to the workers or it can be broadened to include the costof that labor to the employer—the wage rate plus the cost ofbenefits the employee receives. Overtime premium can betreated as direct labor or as overhead.(Exhibit 2-6 illustrates examples of period costs in a bank.)(Exhibit 2-7 shows the flow of costs through the three differenttypes of manufacturing inventory.)(Exhibit 2-8 uses a sample Cost of Goods Manufacturedschedule and a sample Income Statement to illustrate thecalculation and reporting of Cost of Goods Sold.)7.6 Two issues in cost measurement that require special attention are idle time andovertime premium. Idle time is wage paid for unproductive time caused by lackof orders, machine breakdowns, or other reasons. Overtime premium is the wagerate paid to workers in excess of their regular straight-time wage rate. Both ofthese are considered as overhead rather than direct labor costs.Refer to Quiz Questions 7 and 8 Assign Exercises 2-26 and 2-288Explain why product costs are computed indifferent ways for different purposes. . . examples are pricing and product-mixdecisions, government contracts, and financialstatements8.1 Product cost is a term with an ambiguous meaning because there are differentdefinitions of product cost depending on the purpose for measuring that cost.8.2 Pricing and product decisions require an emphasis on the total profitability ofdifferent products and would assign costs incurred in all business functions to theproduct.8.3 Contracting with government agenc ies is frequently done on the “product cost”plus a specified mark up. This is known as cost plus pricing. Governmentagencies frequently have detailed specifications about what costs can be includedin the cost base.8.4 Reporting product cost for financial statement purposes requires adherence toGAAP guidelines for costing.(Exhibit 2-11 illustrates how product costs can vary dependingon the purpose for which product cost is being calculated.)(Exhibit 2-12 lists alternative classifications of costs.)Refer to Quiz Question 99Describe a framework for cost accounting and costmanagement. . . three features that help managers makedecisions9.1 This chapter deals with a number of cost terms and purposes. These concepts canbe expressed in three features of cost accounting that have a wide range of usesin business applications.•Calculating the cost of products, services, and other cost objects.Managers use this information in a variety of ways to formulate strategyand make various decisions.•Obtaining information for planning and control and forperformance evaluation. Budgeting is the most commonly used tool forplanning and control and forces managers to:o Look aheado Translate strategy into planso Coordinate and communicate within the organizationo Provide a benchmark for evaluating performance•Analyzing the relevant information for making decisions. Managers must understand which revenues to consider and which to ignore in thedecision-making process. Management accounting can assist managers indetermining which costs are relevant.Refer to Quiz Question 10V. OTHER RESOURCESPlease visit the textbook companion website at . To download these and other resources, visit the Instructor’s Resource Center or access them on the Instructor’s Resource DVD (IR-DVD).The following exhibits were mentioned in this chapter of the Instructor’s Manual, and havebeen included in the PowerPoint Lecture presentation created specifically for this chapter.You may use the PowerPoint Lecture presentations “as is”, or modify them to suit yourindividual needs.Exhibit 2-1 illustrates examples of cost objects at BMW.Exhibit 2-2 illustrates the assignment of direct and indirect costs at BMW.Exhibit 2-3 displays the cost behavior of variable and fixed costs in total.Exhibit 2-4 illustrates the relevant range of fixed costs at Thomas Transport CompanyExhibit 2-6 illustrates examples of period costs in a bank.Exhibit 2-7 shows the flow of costs through the three different types of manufacturinginventory.Exhibit 2-8 uses a sample Cost of Goods Manufactured schedule and a sample IncomeStatement to illustrate the calculation and reporting of Cost of Goods Sold.Exhibit 2-11 illustrates how product costs can vary depending on the purpose for whichproduct cost is being calculated.Exhibit 2-12 lists alternative classifications of costs.Download pdf images of textbook illustrations and exhibits from the Image Library oraccess them via your IR-DVD.Solutions to Select End-of-Chapter Problems mentioned in this chapter, which have been fully worked out in PowerPoint, are available for download and included on the IR-DVD.CHAPTER 2 QUIZ1.Tanner Co. management desires cost information regarding their Rawhide brand. TheRawhide brand is a(n)a.cost object.b.cost driver.c.cost assignment.d.actual cost.2.The cost of replacement light bulbs on campus would be a direct cost to a college butwould need to be allocated as an indirect cost toa.departments.b.buildings.c.schools.d.individual student instruction.3.What is the total fixed cost of the shipping department of EZ-Mail Clothing Co. if it hasthe following information for 2002?Salaries $800,000 75% of employees on guaranteed contractsPackaging $400,000 depending on size of item(s) shippedPostage $500,000 depending on weight of item(s) shippedRent of warehouse space $250,000 annual leasea. $850,000b. $900,000c. $1,050,000d. $1,950,0004.Morton Graphics successfully bid on a job printing standard notebook covers during theyear using last year’s price of $0.27 per cover. This amount was calculated from prioryear costs, noting that no changes in any costs had occurred from the past year to thecurrent year. At the end of the year, the company manager was shocked to discover that the company had suffered a loss. “How could this be?” she exclaimed. “We had noincreases in cost and our price was the same as last year. Last year we had a healthyincome.” What could explain the company’s loss in income this current year?a.Their costs were all variable costs and the amount produced and sold increased.b.Their costs were mostly fixed costs and the amount produced this year was lessthan last year.c.They used a different cost object this year than the previous year.d.Their costs last year were actual costs but they used budgeted costs to make theirbids.5.Which type of company converts materials into finished products?a.Not-for-profitb.Servicec.Merchandisingd.Manufacturing6.The three categories of inventories commonly found in many manufacturing companiesare:a.Direct materials, direct labor, and indirect manufacturing costs.b.Purchased goods, period costs, and cost of goods sold.c.Direct materials, work in process, and finished goods.d.LIFO, FIFO, and weighted average.7.Inventoriable costs area.only purchased goods for resale.b. a category of costs used only for manufacturing companies.c.recorded as expenses when incurred and later reclassified as assets.d.recorded as assets when incurred.8.Period costs area.all costs in the income statement other than cost of goods sold.b.defined as manufacturing costs incurred this period on the schedule of cost ofgoods manufactured.c.always recorded as assets when first incurred.d.those costs that benefit future periods.9.The cost of a product can be measured as any of the following except as costa.gathered from all areas of the value chain.b.identified as period cost.c.designated as manufacturing cost only.d.explicitly defined by contract.10.The primary focus of cost management is toa.help managers make different decisions.b.calculate product costs.c.aid managers in budgeting.d.distinguish between relevant and irrelevant information.CHAPTER 2 QUIZ SOLUTIONS1. a2. d3. a4. b5. c6. c7. d8. a9. b10. aQuiz Question Calculations3. Fixed costs = (800,000) 75% + 250,000 = $850,000。
成本与管理会计亨格瑞第13版英文版CA
The development of management accounting emerged in the 1920s, when the focus shifted from mere cost measurement to cost analysis and control, emphasizing the role of accounting in decision-making and management control.
It involves the identification, measurement, and allocation of costs, as well as the preparation of cost reports and other management information to assist management in making decisions about product pricing, production, and resource allocation.
Direct and indirect costs
Activity Identification
The first step in the activity-based costing method involves identifying the various activities that take place within the organization.
Cost allocation and collection
Cost Allocation
Allocating costs to specific departments, projects, or products is essential for accurate financial reporting and decision-making.
成本与管理会计-亨格瑞-第13版-英文版-CA07共75页文档
2020/6/8
10
Static Budget
What was the actual operating profit?
Revenues (10,000 × $125) $1,250,000
Less Expenses:
Variable (10,000 × $95.01)
950,100
Fixed
285,000
TOTAL VARIABLE COST
VARIABLE COST PER JACKET
$60 16 12
$88
BUDGETED FIXED COSTS FOR PRODUCTION(0-12 000UNITS) BUGETED SELLING PRICE BUDGETED PRODUCTION AND SALES ACTUAL PRODUCTION AND SALES
Purpose of variance
➢ Management by exception ➢ Performance evaluation ➢ Motivate managers ➢ Prompt strategy change
2020/6/8
2
Basic Concepts
Management by Exception – the practice of focusing attention on areas not operating as expected (budgeted)
2020/6/8
$276 000 $120/JACKET 12 000JACKETS 10 000JACKETS
6
2020/6/8
7
Static Budget
es and sells jackets.
成本与管理会计-亨格瑞-第13版-英文版-CA08_图文_图文
15
Variable overhead spending variance
=($29/machine hour－$30 /machine hour) ×4 500 machine-hours =(-1machine hour) ×4 500 machine-hours =$4 500F
=1 728 000/57 600=30/hour
Budgeted variable overhead cost rate per output unit
5
=0.4hour/unit×30=12/jacket
Variable overhead cost variances（P208 ）
6
Flexible-budget analysis
The variable overhead efficiency variance measures the efficiency with which the costallocation base is used.
11
Variable Overhead Variances
Actual Variable Overhead Incurred
Step 3:
Identify the variable overhead costs associated with each costallocation base.
Step 4:
Compute the rate per unit of each cost-allocation base used to allocate variable overhead costs to output produced.
成本与管理会计-亨格瑞-第13版-英文版-CA08
Flexible Budget for Variable Overhead at Actual Hours
AH × SVR
Flexible Budget for Variable Overhead at
Standard Hours
SH × SVR
Spending Variance
Efficiency Variance
Workers were less skilled than expected in using machines?
Webb spend more on variable overhead costs , such as maintenance?
8
2019/10/7
Variable Overhead Variances
=$15 000U
14
2019/10/7
4500 HOURS VS 4000 HOURS
Possible causes for exceeding budget
Workers were less skilled than expected in using machines
Production scheduler inefficiently scheduled jobs ,resulting in more machinehours used than budgeted
overhead cost
Efficiency
cost-alocation base alocation based alowed
per unit of
Variance
used for actual output for actual output
成本与 管理会计第十三版读书笔记
成本与管理会计第十三版读书笔记好的，以下是为您生成的一篇关于“成本与管理会计第十三版读书笔记”的文章：在会计的世界里，成本与管理会计就像是一座神秘的宝藏，等待着我们去探索和发掘。
当我翻开这第十三版的书籍，仿佛打开了一扇通往智慧宝库的大门。
书中对于成本的阐述，那可真是精彩绝伦。
它可不是简单的数字罗列，而是有着深刻内涵的经济密码。
你想想，成本就像是我们日常生活中的开销，每一笔都得精打细算。
比如说，你要装修房子，买材料、请工人，这一笔笔费用不就是成本吗？要是不仔细核算，超支了可就麻烦啦！管理会计呢，则像是一位高明的军师。
它能帮助企业制定战略，做出明智的决策。
这不就像我们下棋，每一步都要深思熟虑，考虑到各种可能的情况和后果。
如果没有管理会计的指引，企业就像没头的苍蝇，到处乱撞，能成功才怪呢！书中讲到的成本分类，那叫一个细致入微。
固定成本、变动成本，这就好比我们的性格，有的部分始终不变，有的部分却会随着环境而改变。
再比如机会成本，这多像我们在人生的十字路口面临的选择，选择了一条路，就意味着放弃了其他可能的机会，那些被放弃的不就是机会成本吗？还有成本核算的方法，那可真是五花八门。
什么分批法、分步法，听起来复杂，其实理解了就会发现，它们就像做菜的不同步骤和技巧，只要掌握得当，就能做出美味的“财务大餐”。
再说说预算管理，这简直是企业的航行图。
如果没有预算，企业就像在大海中没有指南针的船只，不知道该往哪儿走，能不迷失方向吗？而通过合理的预算编制和控制，企业就能有条不紊地朝着目标前进。
成本控制更是关键中的关键。
就好比我们减肥，要控制饮食、增加运动，企业也要控制成本，优化流程，提高效率。
不然，臃肿的成本会把企业压得喘不过气来。
管理会计中的绩效评价，就像是给企业的表现打分。
做得好要奖励，做得不好要改进。
这和我们在学校考试得高分受表扬，低分要努力不是一个道理吗？总之，这本成本与管理会计第十三版，真的是让我大开眼界，收获满满。
《成本与管理会计》习题及答案 costacctg13_SolPPT_ch13
La Quinta’s 2009 strategy is a cost leadership strategy. La Quinta plans to grow by producing high-quality boxes at a low cost delivered to customers in a timely manner. La Quinta’s boxes are not differentiated, and there are many other manufacturers who produce similar boxes. To succeed, La Quinta must achieve produce high-quality boxes at lower costs relative to competitors through productivity and efficiency improvements.
2. Mesa Corporation, a competitor of La Quinta, manufactures corrugated boxes with more designs and color combinations than La Quinta at a higher price. Mesa’s boxes are of high quality but require more time to produce and so have longer delivery times. Draw a simple customer preference map as in Exhibit 13-1 for La Quinta and Mesa using the attributes of price, delivery time, quality, and design.
成本与管理会计-亨格瑞-第13版-英文版-CA04共76页PPT资料
Learning objective 1 Learning objective 1
Basic Costing Terminology,conts.
Cost Assignment
Direct Costs
Indirect Costs
Cost Object
Cost Allocation
overhead
including responsibility
The direct costs of a cost object are costs that are related to the cost object and can be traced to the cost object in an economically feasible manner.
centers, departments,
customers, products, etc.
Basic Costing Terminology ,conts.
Cost assignment is a general term that includes cost tracing and cost allocation.
Costing
•Adjusting the Systems •Job costing vs
Over/Underappl
Process costing
ied Situations
Structure
•Journal Entries for the flow of
亨格瑞成本与管理会计
亨格瑞成本与管理会计
亨格瑞成本与管理会计（Hengry Cost and Management Accounting）是一种用于管理决策和成本控制的会计方法。
它提供了详细的成本信息，以帮助管理者做出准确的决策，并监控和控制企业的成本。
亨格瑞成本与管理会计主要包括以下几个方面：
1. 成本分类与分析：亨格瑞成本与管理会计通过对成本进
行分类和分析，帮助企业了解各项成本的性质和构成，并
将其与企业的经营活动相对应。
常见的成本分类包括直接
成本和间接成本、可变成本和固定成本等。
2. 成本核算与计算：亨格瑞成本与管理会计通过成本核算
和计算，确定各个产品或服务的成本，并将其分配到相应
的产品或服务上。
这有助于企业了解不同产品或服务的盈
利能力，并进行定价和销售策略的制定。
3. 成本控制与预算：亨格瑞成本与管理会计通过成本控制
和预算，帮助企业控制和管理成本，并制定合理的预算计划。
通过对实际成本与预算成本的比较，企业可以及时发
现和纠正成本偏差，并采取相应的措施进行成本控制。
4. 决策支持与绩效评估：亨格瑞成本与管理会计提供了决
策支持和绩效评估的信息。
通过对不同决策方案的成本效
益分析，帮助企业做出合理的决策，并评估和监控企业的
绩效。
总之，亨格瑞成本与管理会计是一种重要的管理工具，通过提供详细的成本信息和决策支持，帮助企业进行成本控制和管理，并提高企业的绩效和竞争力。
《成本与管理会计》习题及答案 costacctg13_SolPPT_ch01
a. Production Production Distribution d. Marketing
a. Cost of oil for the deep fryer b. Wages of the counter help who give customers the food they order c. Cost of the costume for the King on the Burger King television commercials d. Cost of children’s toys given away free with kids’ meals
Value chain and classification of costs Classify each of the cost items (a–h) as one of the business functions of the value chain shown in Exhibit 1-2 (p. 7). Burger King, a hamburger fast food restaurant, incurs the following costs:
Charles T. Horngren Srikant M. Datar George Foster Madhav Rajan Christopher Ittner
Cost Accounting A Managerial Emphasis thirteenth edition
This presentation includes: Exercises 1-18, 1-21 Problem 1-25
Garnicki performs a taste test at the local shopping mall to see if consumers like the taste of its proposed new chicken pie product. b. Garnicki sales managers estimate they will sell more meat pies in their northern sales territory than in their southern sales territory. c. Garnicki managers discuss the possibility of introducing a new product.
《成本与管理会计》习题及答案 costacctg13_SolPPT_ch16
Joint cost applicable to the wood alcohol
The company should use the new process
Problem 16-27
Alternative methods of joint-cost allocation, product-mix decisions The Sunshine Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point: A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (December), the output at the splitoff point was: Product A 300,000 gallons Product B, 100,000 gallons Product C, 50,000 gallons Product D, 50,000 gallons
Exercise 16-18
Net realizable value method Convad Company is one of the world’s leading corn refiners. It produces two joint products—corn syrup and corn starch—using a common production process. In July 2009, Convad reported the following production and selling-price information:
成本与管理会计 亨格瑞 第 英文版
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LEARNING OBJECTIVE 1
Explain how broad averaging undercosts and overcosts products or services
P110
entree
dessert
drinks
total
emma
11
0
4
15
james
20
8
14
42
jessica
15
4
8
27
matthew
14
4
6
24
total
60
16
32
108
average
15
4
8
27
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Broad Averaging and Cross-subsidization,conts.
based management Compare activity-based costing systems and department costing
systems Evaluate the costs and benefits of implementing activity-based
costing systems
Present three guidelines for refining a costing system Distinguish between simple and activity-based costing systems Describe a four-part cost hierarchy Cost products or services using activity-based costing Explain how activity-based costing systems are used in activity-
成本与管理会计亨格瑞第版英文版CA
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Static Budget
Revenues 12,000 × 120 Less Expenses: Variable 12,000 × 88 Fixed Budgeted operating profit
Managers focus on quantities and costs that exceed standards, a practice known as
management by exception.
Amount
Directdard
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Prepared at the end of the period, once actual costs are known
3 step process
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Steps in Developing Flexible Budgets
Determine budgeted selling price, budgeted variable cost per unit and budgeted fixed cost.
14,900
What is the static-budget variance of operating profit
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Static-Budget Variance
A static-budget variance is : Actual result - Budgeted amount in the static budget .
《成本与管理会计》教师手册 costacctg13_im_09
Inventory Costing and CapacityAnalysisTRANSITION NOTESThis chapter now has a single comprehensive example that integrates the two parts of the chapter. This helps relate inventory costing to the capacity level issues and should make it easier for the student to relate the two concepts. The section on regulatory requirements is now entitled “Tax Requirements.” Many end-of-chapter problems have been revised and some new one introduced.PROBLEM MATERIALCORRELATION CHART13th Edition 12thEdition 13thEdition12thEdition16 16 30 3317 17 31 New18 18 32 34 Revised19 19 33 35 Revised20 20 34 36 Revised21 21 35 37 Revised22 22 Revised 36 38 Revised23 23 37 New24 24 38 New25 25 Revised 39 New26 26 Revised 40 40 Revised27 New 41 41 Revised28 30 42 New29 32I. LEARNING OBJECTIVES1.Identify what distinguishes variable costing from absorption costingpute income under absorption costing and variable costing, and explain thedifference in income3.Understand how absorption costing can provide undesirable incentives for managersto build up inventory4.Differentiate throughput costing from variable costing and absorption costing5.Describe the various capacity concepts that can be used in absorption costing6.Examine the key factors in choosing a capacity level to compute the budgeted fixedmanufacturing cost rate.7.Describe how attempts to recover fixed costs of capacity may lead to price increasesand lower demand9II. CHAPTER SYNOPSISThis chapter focuses on two related concepts: Variable costing, which is introduced andcompared with absorption costing; and throughput, or super-variable costing. In thesecond part of the chapter, capacity concepts that can be used in absorption costing arepresented. The use of these capacity concepts—theoretical, practical, normal, and master budget utilization—affect the cost per unit that is calculated for fixed costs.III. POINTS OF EMPHASIS1.Students may not have been introduced to the term absorption costing, even thoughthey have used it in previous courses. Help them understand how absorption costingand variable costing differ and why variable costing is preferable for decision-makingpurposes. Observe that a variable costing income statement classifies costs bybehavior; an absorption statement classifies costs by character.2.Emphasize that, although all variable costs are listed on the top portion of the incomestatement, only variable manufacturing costs are included in variable cost of goodssold.3.Students may react to the extreme nature of throughput costing. Emphasize that itdoes not have to be the only costing system employed, and is a useful short-termmanagement tool.4.Students may have trouble thinking “outside the box” on capacity concepts. The“teaching point” demonstration in the chapter outline will help them realize thatcapacity may have many definitions and meanings.IV. CHAPTER OUTLINE1Identify what distinguishes variable costing. . . fixed manufacturing costs excluded frominventoriable costsfrom absorption costing. . . fixed manufacturing costs included ininventoriable costs1.1Variable costing (also known as direct costing) is a method of inventory costingin which all variable manufacturing costs are included as inventoriable costs. Allfixed manufacturing costs are excluded from inventoriable costs and are treatedas costs of the period in which they are incurred.1.2Absorption costing is a method of inventory costing in which all variablemanufacturing costs and all fixed manufacturing costs are included asinventoriable costs. Thus, inventory “absorbs” all manufacturing costs.Absorption costing is the method required for Generally Accepted AccountingPrinciples for external financial reporting.TEACHING POINT. Two observations can be made aboutvariable and absorption costing. A variable costing incomestatement classifies cost based on behavior. An absorptioncosting income statement classifies cost based on character(manufacturing, selling, administrative).Second, students frequently do not grasp the concept that not allvariable costs are inventoriable—only variable manufacturingcosts.1.3The main difference between the two is the treatment of fixed manufacturingcosts.TEACHING POINT. At this stage it is helpful to prepare incomestatements illustrating the two approaches. Before the studentscan understand why the differences arise between the two,they must have a concept of how an income statement isprepared under both methods. Exercise 9-16 can be used forthis purpose, saving the second part to explain why thedifferences arise.Refer to Quiz Question 1 Exercise 9-16 Part 12Compute income under absorption costing. . . using the gross-margin formatand variable costing,. . . using the contribution-margin formatand explain the difference in income. . . affected by the unit level of production andsales under absorption costing, but only the unitlevel of sales under variable costing(Exhibit 9-2 is an illustration comparing income statementsprepared under Variable Costing and Absorption Costing for athree-year period.)2.1In 2009, production exceeded sales. Since all fixed costs are expensed undervariable costing, absorption costing shows a higher operating income. Thedifference of $270,000 represents fixed costs that are included in endinginventory under absorption costing.2.2In 2010, sales exceed production, thus reducing inventory. Variable costingshows a higher operating income. The $202,500 difference represents the fixedcosts in the change of inventory level ($135 fixed cost per unit ⨯ 1,500 unitreduction in inventory).2.3In 2011, production exceeds sales with a corresponding increase in endinginventory. Once again, absorption costing shows a higher operating income, by$337,500. The difference is the fixed costs in the increased level of inventory($135 ⨯ 2500 = $337,500).TEACHING POINT. This concept is best covered throughillustration. The more students see these effects, the morelikely they are to grasp the concept.Refer to Quiz Questions 2, 3, and 4 Exercise 9-16 Part 2, 9-183Understand how absorption costing can provideundesirable incentives for mangers to build upinventory. . . producing more units for inventory absorbsfixed manufacturing costs and increases operatingincome3.1 As has been observed, absorption costing is the required inventory method forexternal reporting in the United States and most other countries. Most companiesalso use absorption costing for internal accounting as well. This includesperformance evaluation.3.2 Companies use one method because it is seen as cost effective and less confusingfor managers to deal with one common method for inventory reporting.3.3 This can lead to undesirable behavior on the part of managers seeking to enhancetheir performance evaluation, even to the detriment of the company.3.4 Companies that use both methods for internal reporting—variable costing forshort-run decisions and performance evaluation and absorption costing for long-run decisions—benefit from the advantages of both methods.3.5 One motivation for an undesirable buildup of inventories could be due to the factthat a manag er’s bonus is based on absorption-costing operating income.(Exhibit 9-4 illustrates the effect on absorption-costingoperating income at different levels of production.)TEACHING POINT. An extreme example will illustrate howproducing for inventory can result in higher profits underabsorption costing and a better performance evaluation for themanager. By over-producing, the manager increases hisincome, with no increase in the level of sales.Production Equals SalesSales $10/unit x 1000 10,000Cost of goods sold:VC (1000 ⨯ 4) 4,000FC 3,000Mfg costs 7,000Ending inventory -0-Cost of goods sold 7,000Gross profit 3,000=====Production Exceeds SalesSales $10/ units ⨯ 1,000 10,000Cost of goods sold:VC (2000 ⨯ 4) 8,000FC 3,000Mfg cost 11,000Ending inventory 5,500Cost of goods sold 5,500Gross profit 5,500=====3.6 Top management can take several steps to reduce the undesirable effects ofabsorption costing.•Focus on careful budgeting and inventory planning to reducemanagement’s freedom to build up excess inventory.•Incorporate a “carrying charge” for inventory in the internal accountingsystem.•Change the period to evaluate performance. Instead of quarterly orannual horizon, evaluate the manager over a three-to-five year period.•Include nonfinancial as well as financial variables in the measures ofperformance evaluation.Refer to Quiz Question 5 Exercises 9-21 and 9-224Differentiate throughput costing. . . direct material costs inventoriedfrom variable costing. . . variable manufacturing costs inventoriedand absorption costing. . . variable and fixed manufacturing costsinventoried4.1 Some managers take the view that only direct materials are truly variable and arethe only costs that should be inventoried.4.2 This approach is known as throughput costing or super-variable costing. It isan inventory valuation method in which only direct material costs are included in inventoriable costs. All other costs are period costs and expensed in the periodincurred.TEACHING POINT. Students will be slow to accept such aseemingly radical departure from traditional costing methods.Illustrate that, in the very short run, many variable costs dobehave as though they were fixed. For example, consider arestaurant. When a server comes on duty, that server will likelywork until the end of the shift. Even though business mayfluctuate and the server may not stay busy the entire time, theemployer is on the hook for 8 hours pay. The employer cannot(from a practical standpoint) tell the employee to take an houroff because business is slow. Thus, the server’s wages for theday are in a very real sense, fixed.4.3 Throughput contribution is defined as revenues minus direct material cost ofgoods sold.4.4 Variable costing and absorption costing (as well as throughput costing) may becombined with actual, normal, or standard costing.(Exhibit 9-6 compares product costing under various inventorycosting systems.)TEACHING POINT. This is a good place to revisit thedefinitions of actual, normal, and standard costing. Althoughthese concepts are not difficult, they need to be brought intothe discussion on occasion to reinforce the differences amongthe three.4.5 Even though variable costing is not acceptable under GAAP, there are those whofeel that it should be acceptable for external reporting purposes. Their argumentis that fixed costs are more related to the capacity to produce rather than to actualproduction of specific units.4.6 Those arguing for the status quo, supporting absorption costing, maintain thatinventories should contain a fixed cost component because both fixed andvariable costs are necessary to produce goods.4.7 A key issue in absorption costing is the capacity level used to compute fixedcosts per unit produced.Refer to Quiz Question 6 Exercises 9-17 and 9-195Describe the various capacity concepts that can beused in absorption costing. . . theoretical capacity, practical capacity, normalcapacity utilization, and master-budget capacityutilization5.1 Determining the appropriate level of capacity is one of the most strategic anddifficult decisions managers face. Too much capacity means incurring costs ofunused capacity. Too little capacity means that demand may go unfilled.5.2 Four different capacity levels are used to compute the budgeted fixedmanufacturing cost rate. They are:•Theoretical capacity•Practical capacity•Normal capacity utilization•Master-budget capacity utilizationTEACHING POINT. To get students to “think outside the box”about capacity, perform the following demonstration. Get asmall glass jar. Ask a student to fill the jar with marbles. Whenthe student has done so, ask if the jar is full. Normally, you willget a “yes” for an answer. Then pull out a box of salt. Askanother student to pour as much salt into the jar with marbles.Then ask “Now is the jar full?” At this point, you will get someweak “ye s es” but the students don’t quite trust their answers.Then pull out a glass of water. Have a student pour water intothe marbles/salt. Emphasize that capacity is not a hard number,but depends on many factors.5.3 Theoretical capacity is the level of capacity based on producing at fullefficiency all the time. This measure of capacity does not allow for plantmaintenance, shutdowns, interruptions, or any other factors. Theoretical capacitymay be achieved for short periods of time, but it cannot be sustained. Theoreticalcapacity represents an ideal goal of capacity utilization.5.4 Practical capacity is the level of capacity that reduces theoretical capacity byconsidering unavoidable operating interruptions—scheduled maintenance orholidays, for example.5.5 Normal capacity is the level of capacity utilization that satisfies averagecustomer demand over a period of time—often two to three years.5.6 Master-budget capacity utilization is the level of capacity that managers expectfor the current time period, frequently one year.5.7 Theoretical and practical capacity measure capacity in terms of what a plant cansupply. Normal capacity and master-budget utilization measure capacity in termsof demand.5.8 The capacity level chosen will affect the budgeted fixed overhead cost rate. As alower capacity level is chosen, the fixed cost per unit increases.The Stassen Company illustration demonstrates the effect of different capacitylevel choices on the fixed overhead rate.Refer to Quiz Question 7 Exercise 9-266Examine the key factors in choosing a capacitylevel to compute the budgeted fixed manufacturingcost rate. . . managers must consider the effect a capacitylevel has on product costing capacity management,pricing decisions, and financial statements6.1 One of the principles of cost accounting covered in an earlier chapter was“different costs for different purposes.” That princi ple applies as we seek tochoose a capacity level for different purposes, including:•Product costing and capacity management•Pricing•Performance evaluation•External reporting•Regulatory requirements•Difficulties in forecasting6.2 Theoretical capacity is rarely used to calculate budgeted fixed manufacturing costper unit because it is significantly different from the “real” capacity available to acompany.6.3 Practical capacity is frequently used to calculate budgeted fixed manufacturingcost per unit. This approach sets the cost of capacity at the cost of supplying thecapacity regardless of demand.6.4 Practical capacity, then, highlights the cost of capacity acquired but not used andmay serve to direct managers’ attention toward more effective capacit ymanagement.6.5 In performance evaluation managers must guard against using a long-runmeasure such as normal capacity usage for a short-run purpose such as annualbonuses. Master-budget utilization would be more effective in this situation.6.6 For external reporting purposes, the choice of capacity measure will affect themagnitude of the production-volume variance. How this variance is disposed ofat the end of the year will impact the company’s operating income.•The adjusted allocation-rate approach restates all amounts in theledgers using actual rather than budgeted cost rates. This has the effect ofswitching to actual costing at the end of the year.•The proration approach spreads the balance over the accountscontaining overhead—Work-in-Process, Finished Goods, and Cost ofGoods Sold—in proportion to the balances in these accounts.•The write-off to cost of goods sold approach simply writes the balanceof the variance off to cost of goods sold. This can be utilized when thebalance is immaterial. This method also is the simplest to utilize.TEACHING POINT. A number of cost accountants use thewrite-off to cost of goods sold approach with the belief that thebalance to be written off must be very large before it becomesmaterial. In a normal operating situation, a very largepercentage of the balance will go to cost of goods sold, so itwould take a huge balance to make a material differencebetween methods.6.7 For tax reporting in the United States the IRS requires the use of practicalcapacity to calculate budgeted fixed overhead cost per unit.Refer to Quiz Questions 8, 9, and 10 Exercise 9-257Describe how attempts to recover fixed costs ofcapacity may lead to price increases and lowerdemand. . . this situation is the downward demand spiral,which explains why customers are unwilling to payfor a company’s unused capacity7.1 The downward demand spiral is the continuing reduction in demand thatoccurs when competitor prices are not met. As demand drops, unit costs becomeincreasingly higher resulting in an increased reluctance to meet competitors’prices.TEACHING POINT. The downward demand spiral and itseffect on profits is best illustrated through an example such asis included in the text.7.2 As the company increases prices to cover fixed costs, demand drops due to thehigher price, resulting in another price increase to cover still higher per-unit costs.7.3 Note that capacity costs also arise in nonmanufacturing parts of the value chainand must be appropriately dealt with by management. Failure to consider thesemay create unexpected losses.V. OTHER RESOURCESPlease visit the textbook companion website at . To download these and other resources,visit the Instructor’s Resource Center or access them on the Instructor’s Resource DVD(IR-DVD).The following exhibits were mentioned in this chapter of the Instructor’s Manual, andhave been included in the PowerPoint Lecture presentation created specifically for this chapter. You may use the PowerPoint Lecture presentations “as is”, or modify them tosuit your individual needs.Exhibit 9-2 is an illustration comparing income statements prepared under VariableCosting and Absorption Costing for a three-year period.Exhibit 9-4 illustrates the effect on absorption-costing operating income at differentlevels of production.Exhibit 9-6 compares product costing under various inventory costing systems.Download pdf images of textbook illustrations and exhibits from the Image Library oraccess them via your IR-DVD.Solutions to Select End-of-Chapter Problems mentioned in this chapter, which havebeen fully worked out in PowerPoint, are available for download and included on the IR-DVD.CHAPTER 9 QUIZ1.The main difference between variable costing and absorption costing isa.the treatment of nonmanufacturing costs.b.the accounting for variable manufacturing costs.c.the accounting for fixed manufacturing costs.d.their value for decision makers.The following data apply to questions 2 and 3.Alvin Inc. planned and actually manufactured 200,000 units of its single product in 2008, its first year of operations. Variable manufacturing costs were $30 per unit of product. Planned and actual fixed manufacturing costs were $600,000, and marketing and administrative costs totaled $400,000 in 2004. Alvin sold 120,000 units of product in 2008 at a selling price of $40 per unit.2.[CMA Adapted] Alvin’s 2008 operating income using variable costing isa. $800,000.b. $600,000.c. $440,000.d. $200,000.3.[CMA Adapted] Alvin’s 2008 operating income using absorption costing isa. $840,000.b. $800,000.c. $440,000.d. $200,000.4.[CPA Adapted] Operating income using variable costing as compared to absorptioncosting would be highera.when the quantity of beginning inventory equals the quantity of ending inventory.b.when the quantity of beginning inventory is more than the quantity of endinginventory.c.when the quantity of beginning inventory is less than the quantity of endinginventory.d.under no circumstances.5.Absorption costing enables managers to increase operating income in the short run bychanging production schedules. Which statement is true regarding such action?a.The reason for increased operating income is the deferral of fixed manufacturingoverhead contained in unsold inventory.b. A desirable effect of these changes in production is “cherry picking” theproduction line.c.This is done through decreases in the production schedule as customer demandfor product falls.d.None of the above statements are true regarding manager’s action to increaseoperating income through changes in the production schedule.6.The proponents of throughput costinga.maintain that variable costing undervalues inventories.b.maintain that it provides more incentive to produce for inventory than do eithervariable or absorption costing.c.argue that only direct materials and direct labor are “truly variable” and allindirect manufacturing costs be written off in the period in which they areincurred.d.treat all costs except those related to variable direct materials as costs of theperiod in which they are incurred.7.The absolute minimum absorption-inventory cost that would be reported under the bestconceivable operating conditions is a description of which type of denominator-levelconcept cost?a.Master-budget utilizationb.Practical capacityc.Theoretical capacityd.Normal utilizatione of capacity levels based on demanda.hides the amount of unused capacity.b.highlights the cost of capacity acquired but not used.c.yields a cost rate that does not include a charge for unused capacity.d.results in a price that covers the cost of capacity customers expect to pay.9. A company may experience the downward demand spiral whena.the use of theoretical capacity as a denominator level has contributed to budgetsthat project sales to be higher than actually attainable.b.spreading capacity costs over a small number of units and setting selling priceseven higher to recover those costs.c.engaged in a cyclical business and after experiencing an upturn.d.the production-volume variance is unfavorable each time period during a year.10.The manner in which a company deals with end-of-period variances will determine theeffect production-volume variances have on the company’s end-of-period operatingincome. When the chosen capacity level exceeds the actual production level, whichapproach to end-of-period variances results in an unfavorable production-volumevariance affect on that period’s operating income?a.Proration approachb.Adjusted allocation-rate approachc.Theoretical approachd.Write-off variances to cost of goods sold approachCHAPTER 9 QUIZ SOLUTIONS1. c2. d3. c4. b5. a6. d7. c8. a9. b10. dQuiz Question Calculations2. Sales 120,000 ⨯ $40/unit $4,800,000VC 120,000 ⨯ $30/unit 3,600,000Contribution margin $1,200,000Fixed costs ($600,000 + $400,000) 1,000,000Operating income 200,000========3. Sales 120,000 ⨯ $40 $4,800,000COGSVariable 3,600,000Fixed 360,000*3,960,000Gross profit 840,000Fixed costs 400,000Operating income 440,000=======Fixed manufacturing cost $600,000 / 200,000 units = $3 unit$3/unit ⨯ 120,000 units sold = $360,000。
《成本与管理会计》教师手册 costacctg13_im_12
Pricing Decisions and Cost Management TRANSITION NOTESMuch of the presentation in this chapter has been streamlined, retaining certain material while rewriting and clarifying other essential coverage. The introductory material to alternativelong-term pricing approaches has been shortened, placing an emphasis on the pricingapproaches themselves. The five-step decision process is applied to target costing. Thematerial discussion value engineering has been rewritten and updated. The discussion ofvalue chain analysis has been streamlined along with the life cycle budgeting, which hasundergone revisions. The section on customer life cycle costing now contains more examples.Much of the problem material at the end of the chapter is new or revised.PROBLEM MATERIALCORRELATION CHART13th Edition 14thEdition13thEdition14thEdition16 16 Revised 28 2817 17 Revised 29 New18 18 30 3019 19 31 New20 20 32 3221 21 33 3322 22 34 New23 23 Revised 35 New24 24 36 3625 New 37 3726 New38 New27 27I. LEARNING OBJECTIVES1.Discuss the three major influences on pricing decisions2.Distinguish short-run from long-run pricing decisions3.Price products using the target-costing approach4.Apply the concepts of cost incurrence and locked-in costs5.Price products using the cost-plus approache life-cycle budgeting and costing when making pricing decisions7.Describe two pricing practices in which noncost factors are important when settingprices8.Explain the effects of antitrust laws on pricing12This chapter describes the relationship between pricing decisions and product costing.Three major influences on pricing decisions are customers, competitors, and costs. The time horizon of the pricing decision needs to be considered as there are different factors in play for short-term versus long-term pricing decisions.The target-costing approach is explained and distinguished from a traditional cost-plusapproach. Target costing starts with a market-defined target price and then works back toa calculated target cost. Traditional cost-plus pricing approaches add required profit toproduct cost to determine product price.Life-cycle budgeting, price discrimination, peak-load pricing, and the impact of antitrust laws on pricing decisions are also discussed.III. POINTS OF EMPHASIS1.As students get involved in setting prices, they need a good understanding of theinfluences on pricing. Be certain they comprehend the interplay amongcustomers, competitors, and costs in setting prices. Students also need tounderstand that different dynamics are at play in setting short-term prices asopposed to long term.2.Students need to understand that target costing/pricing is a totally differentapproach from cost-plus pricing. Both methods have their place. Emphasize thetarget-costing approach.3.Non-value added costs are defined in terms of the customer. “Given a choice,would the customer pay for this cost?” Students frequently do not grasp thecustomer orientation in this definition.4.As companies and customers become more environmentally aware, the issues oflife-cycle budgeting and costing are becoming more important. There is a greateracknowledgement that the manufacturer may have some responsibility for theproduct at the end of its life cycle. This increases the importance of life-cyclebudgeting. Students should be exposed to why this is becoming an importantissue.1Discuss the three major influences on pricing decisions. . . customers, competitors, and costs1.1Companies do not price products or services in a vacuum. They must take intoaccount numerous factors if they are to succeed in the marketplace. Demand and supply for a product are factors that determine what a company can charge for a product or service. There are three influences on demand and supply: customers, competitors, and costs.1.2Customers influence price through their demand for a product based on featuresof the product and its quality.1.3Competitors have a significant influence on price. A company must always beaware of the actions of its competitors. These actions will influence the price atwhich a company can sell its product. It is beneficial to know competitors’technology, capacity, and operating strategies.1.4The third influence on pricing is costs. A company cannot sell a product for lessthan its cost and hope to succeed. Knowledge of costs and cost behavior canenable a company to price its product to receive the maximum benefit.TEACHING POINT. I once did a study of a company that wasobviously a very successful bakery. However, in interviewingthe general manager, she pointed out that a certain item wastheir best selling product, but they lost $8 on each one theysold. She showed us another product, their second best seller,but they lost $5 on each one they sold. Since they wereapparently succeeding, this did not make sense. Upon furtherquestioning, we learned that costs were determined by takingdirect materials and direct labor, and then adding a set amountfor overhead for each product. When quizzed about how thisoverhead amount was determined, we were told that “severalyears ago, our bookkeeper figured out this was the amount ofoverhead to apply.” F ortunately, this company lacked muchdirect competition as they did not have a grasp of their coststructure.1.5 A company must always keep in mind that the key factor is the customer’swillingness to pay. Pricing may not be restrained by competition, but there is alimit to what a customer is willing to pay for a product.Refer to Quiz Question 1Distinguish short-run. . . less-than-one-year time horizon with mostlyincremental costs being relevantfrom long-run pricing decisions. . . more-than-one-year time horizon with all productcosts being relevant2.1 A company is faced with two time-related decisions in its pricing strategy. Forthe long term, they must set prices at a level that will recover all costs, fixed andvariable. However, when excess capacity exists, the company may find that alower short-term price can add to the company’s bottom line.2.2There are two key differences that affect pricing for the long run versus the shortrun:•Costs that are often irrelevant for the short run are generally relevant forthe long run because these can be altered only in the long-term view.Generally, these are fixed costs.•Profit margins for long-run pricing are often set to earn a reasonablereturn on investment. Short-run pricing is more opportunistic—pricescan be raised or lowered based on strong or weak demand.2.3Pricing for the short run involves a determination of what are the relevant costsfor this decision.2.4 A key factor in setting short-run prices is whether the company has excesscapacity. If this exists, any price above variable costs will contribute to payingfixed costs and to profit.2.5Long-run pricing is the result of a strategic decision designed to buildrelationships with customers based on stable and predictable pricing.TEACHING POINT. Companies value stability. By providingstable, predictable pricing, a company can plan moreeffectively. Additionally, stable, predictable pricing will enhancethe customer’s effectiveness in planning.Helping the students work through Exercise 12-27 will make iteasier for them to grasp the short-term pricing concept ofrelevant costs.(Exhibit 12-1 illustrates the total cost of manufacturingProvalue using activity-based costing.)(Exhibit 12-2 summarizes operating income for Provalueacross the value chain using activity-based costing.)Refer to Quiz Questions 2 and 3 Exercises 12-17 and 12-18Price products using the target-costing approach. . . target costing identifies an estimated price customersare willing to pay and then computes a target cost toearn the desired profit3.1 In setting long-range prices, companies can take a market-based approach, orthey can take a cost-based approach.•The market-based approach starts with a customer focus, asking what the customer wants, how competitors will react to our decisions, and whatprice should be charged. This approach is target pricing.•The cost-based approach starts with an evaluation of costs and where the selling price should be set in order to recoup costs and earn a desiredreturn on investment. This is known as cost-plus pricing.TEACHING POINT. Depending on the competitive situation,companies would gravitate toward one approach or the other.For example, in a highly competitive market the marketapproach would normally be utilized. These companies mustaccept the prices set by the market. If the market were lesscompetitive, cost-plus pricing could be used. This approach isuseful for companies offering products or services that differfrom each other—legal services, income tax preparation,custom jewelry, to name a few. Have students identify variousmarkets and determine which approach they are likely to utilize.3.2 Market-based pricing starts with a target price. This is defined as the estimatedprice that potential customers will pay for a product. This price is based upon anunderstanding of the value placed on the product by the customer and howcompetitors will price their products.3.3 Three reasons are given for the importance of understanding customers andcompetitors; they are:•Competition from lower-cost producers means prices cannot be increased.•Products today have a short life cycle. There is less time and opportunity to recover from pricing mistakes and loss of market share.•Customers have become more knowledgeable and demand qualityproducts at reasonable prices.TEACHING POINT. Explore with the students how Internetmarketing has affected these three factors.3.3 Understanding the value a customer places on a product is a difficult assignment.However, the sales and marketing personnel have close contact with customersso they should be able to provide valuable insight.3.5 Competitor analysis is also essential to setting viable market prices. When thecompany understands its competitors, it can more effectively evaluate howdistinctive its own products and services will be in the market, and the price theymight be able to charge as a result of being distinctive.3.6 Implementing target pricing and target costing is a five-step process.Step 1: Develop a product that satisfies the needs of potentialcustomers. This is basically a restatement of the old marketingadage, “Find a need and fill it.” However, in today’s society, thecompany can play a part in creating that need.Step 2: Choose a target price. This price should be based on research ofcompetitor’s products and what the customer is willing to pay.Step 3:Determine the target operating income per unit and subtract thatfrom the target price to arrive at target cost per unit. This is theestimated long-run cost per unit of a product or service thatenables the company to achieve its target operating income perunit when selling at the target price.Step 4: Perform cost analysis. This step analyzes which aspects of aproduct or service to target for cost reductions. In most instances,the target price will be less than the current price per unit, so thecompany must take steps to reduce the cost.Step 5:The final step is to perform value engineering to achieve thetarget cost. Value engineering is a systematic evaluation of allaspects of the value chain. The objective is to reduce costs whileachieving a quality level that will satisfy customers.TEACHING POINT. Value engineering looks for better ways toaccomplish an objective. This may mean a reduction in parts,using plastic that snaps together rather than metal that isattached by screws, using less packaging, redesigning theproduction process to reduce product movement, adopting amore efficient distribution network. It may include omittingfeatures on the product that the customer does not value. Forexample, customers may indicate a desire for a certain featureto be included in the product. However, when told that thefeature will add additional X dollars to the price, they would notwant the feature.One Internet-based company studied their web activity anddiscovered that many customers would place items in their cartand begin the checkout process. However, when they saw theamount of shipping charges, the sale was not completed.This forced the company to re-evaluate its shipping function,as customers were not willing to pay that level of shippingcharges.Refer to Quiz Question 4 Exercises 12-19and 12-20; Problem 12-284Apply the concepts of cost incurrence. . . when resources are consumedand locked-in costs. . . when resources are committed to be incurred in thefuture4.1 To implement value engineering, managers must distinguish between value-added and nonvalue-added costs. A value-added cost is a cost that, if eliminated,would reduce the value of the product in the eyes of the customer. A nonvalue-added cost is one that, if given a choice, the customer would not pay for.TEACHING POINT. If ordering a fragile item, the customer iswilling to pay for packaging materials—the customer does notwant the item damaged in shipment. This is a value-added cost.On the other hand, the customer would not be willing to pay forrework of defective products, with the attitude that it should bedone right the first time. This is a nonvalue-added cost.Emphasize that the distinction between the two is from theview of the customer.4.2 In performing value engineering, a distinction must be made between costincurrence and when costs are locked in.4.3 Cost incurrence describes when a resource is consumed to meet a specificobjective. When direct materials are placed into production, the cost has beenincurred.4.4 Locked-in costs are otherwise known as designed-in costs. These are costs thathave not yet been incurred, but based on decisions that have already been made,will be incurred in the future.TEACHING POINT. In planning a trip, both types of thesecosts will be encountered. When the airline reservations aremade, the cost of the airfare must be paid. That is an incurredcost. If a rental car is also booked, I have locked-in my rentalprice, but the cost will not be incurred until the car is used.(Exhibit 12-3 is a graphical representation of the pattern oflocked-in costs and cost incurrence.)4.5 Design choices affect locked-in costs. Once the design of the product is finalized,the cost of the product is determined to a large degree. If the design of theproduct requires four screws, the cost of four screws is a locked-in cost. As theproduct is manufactured it becomes an incurred cost and can be avoided only bya redesign or by not manufacturing the product.4.6 Since costs are incurred at all points in the value chain, but frequently locked induring the design phase, cost reductions can be most readily attained throughvalue-chain analysis and the use of cross-functional teams. By forming a team ofrepresentatives from all segments of the value chain the product can be designedto reduce costs while retaining features that customers value.4.7 In summary, the target pricing, target costing, and value-engineering processhave five key elements:•Understanding customer requirements and competitor actions•Selecting a target price and determining target cost•Anticipating how costs are locked in before they are incurred•Improving product and process designs and efficiency to achieve targetcosts and better quality•Using cross-functional teams to coordinate actions across the value chain(Exhibit 12-4 illustrates calculation of cost-driver rates atProvalue.Refer to Quiz Question 5 Exercise 12-22 and Problem 12-305Price products using the cost-plus approach. . . cost-plus pricing is based on some measure of costplus a markup5.1 Companies selling distinctive products or services may be able to effectivelyutilize cost-plus pricing. The general approach to cost-plus pricing is to add amarkup component to the cost base to arrive at the prospective selling price. 5.2 It should be noted that the cost-plus formula is only a starting point for pricingdecisions. Costs, customers, and competitors still play a role in price setting.Unfortunately, managers will often rigidly stick to the cost-plus formula to thedetriment of the company.5.3 One approach to cost-plus pricing is to mark up the product to achieve a targetrate of return on investment. This approach adds a markup based on theinvestment the company has in the equipment. The markup is added to the fullcost of the product.TEACHING POINT. Illustrate an example of the approach tocost-plus pricing, as in Exercise 12-23. Emphasize that thedesired return on investment and the markup percentage aretwo different numbers. If the students do not make thisdistinction, they will be confused about how to properlyimplement this approach to cost-plus pricing.5.4 In many situations, it may be difficult to determine the specific amount ofinvestment the company has to support a specific product, making application of the target return on investment difficult, if not meaningless. In these cases, thecompany simply determines the amount of desired profit and determines theappropriate markup percentage.5.5 There are four different cost bases utilized for this purpose:•Variable manufacturing cost, which includes only those manufacturing costs that are classified as variable.•Variable cost of the product, which adds variable nonmanufacturing costs to the cost base.•Manufacturing cost, which includes all variable and fixedmanufacturing costs.•Full cost of the product, which includes all costs incurred on behalf of the product.TEACHING POINT. Emphasize the importance of knowing thedefinition of cost in the application of the markup percentage.Using the wrong base with the wrong percentage markup willresult in a product that is widely overpriced or underpriced—both undesirable results.5.6 Surveys have shown that most managers use full cost of the product for theircost-based pricing decisions. Three advantages of this approach are cited.•Full recovery of all costs of the product. The markup is designed tomake a full recovery of all costs of the product.•Price stability. This approach leads to price stability, as it limits theability and temptation of sales personnel to cut prices.•Simplicity. It does not require a detailed analysis of cost-behaviorpatterns.5.7 As mentioned, the cost as determined through the cost-plus formula is aprospective price. If the price under the cost-plus approach is deemed to beexcessive, the markup percentage may need to be reduced. Reactions tocompetitors may require a lower markup percentage.5.8 Target pricing eliminates the need to go back-and-forth among prospective cost-plus prices, customer reactions, and design modifications. Target pricingapproaches the pricing problem by beginning with a target price and customerpreferences and working back to the cost, unlike the cost-plus approach.5.9 Suppliers providing unique products and services (such as accountant andattorneys) usually use cost-plus pricing.5.10 Service companies such as home repair and automobile repairs use a variation ofcost-plus called time-and-materials pricing, in which job prices are based onmaterials used and labor time.Refer to Quiz Questions 6 and 7 Exercises 12-23 and 12-24; Problems 12-31, 12-32, and 12-336Use life-cycle budgeting and costing when makingpricing decisions. . . accumulate all costs of a product from initial R&Dto final customer service for each year of its life6.1 A normal budget cycle is a one-year period. However, companies may sometimeneed to consider target prices and costs for a period encompassing multiple yearsor the product life cycle.6.2 The product life cycle spans the time from initial R&D on a product to the pointwhere customer support and service are no longer offered for that product.6.3 Life-cycle budgeting is the process in which managers estimate revenues andbusiness function costs of the entire value chain.6.4 Life-cycle costing tracks and accumulates business function costs of the valuechain from R&D to final customer service and support.TEACHING POINT. In some instances, the manufacturer has aresponsibility for the product beyond the sale. This can includethe warranty period and the support period during which thecompany will make replacement parts available. In some cases,such as with a smoke detector, the manufacturer’sresponsibility extends to disposal of the product. All of thesepost-purchase costs need to be considered in life-cyclebudgeting and costing.6.5 These factors make life-cycle budgeting important:•The development period for R&D is long and costly. These costs must be recovered over the life span of the product.•Many costs are locked in at the R&D and design stages.(Exhibit 12-6 illustrates the budgeting of life-cycle revenuesand costs for a software package.)6.6A different approach to life-cycle costing is customer life-cycle costing. Theapproach considers the cost of ownership of the product for the customer from theinitial purchase to ultimate disposal.TEACHING POINT. Purchase of a computer printer is anexample of this concept. Companies may even sell printers atextremely low prices in order to make profits on the sale ofreplacement ink cartridges for the printer.Refer to Quiz Question 8 Exercise 12-25 and Problem 12-357Describe two pricing practices in which noncost factorsare important when setting prices. . . price discrimination—charging different customersdifferent prices for the same product; and peak-loadpricing—charging higher prices when demandapproaches capacity7.1 In some cases, cost is not a major factor in setting prices. There are two suchsituations that are frequently encountered.•Price Discrimination is the practice of charging different prices todifferent customers for the same product or service.TEACHING POINT. A customer who buys an airline ticket amonth in advance will pay a lower price than one who buys theticket one day in advance. Ask the students to brainstorm forother examples of price discrimination. Some examples mightinclude early bird dining prices, senior discounts or quantitydiscounts. Discuss why companies use this type of pricediscrimination.• A second scenario where pricing decisions are based on factors otherthan cost deal with capacity constraints. This is known as peak-loadpricing, the practice of charging a higher price for the same product orservice when the demand approaches capacity.TEACHING POINT. Motels are well known for peak-loadpricing. During the first week in May, hotel prices in Louisville,Kentucky skyrocket, usually with a minimum stay of threenights. Why? The first Saturday in May is the Kentucky Derby.Three day packages start at $1,500 for a downtown Louisvillehotel and go as high as $12,000. Engage the students in otherexamples of peak-load pricing.Refer to Quiz Question 9. Assign Exercise 12-26 and Problem 12-36.8Explain the effects of antitrust laws on pricing. . . antitrust laws attempt to counteract pricing belowcosts to drive out competitors or fixing prices artificiallyhigh to harm consumers8.1 Companies are not entirely free to set prices as they choose. Antitrust lawsregulate pricing considerations. Two key features of these laws are:•Price discrimination is permissible if differences in prices can be justified by differences in costs.•Price discrimination is illegal only if the intent is to lessen or preventcompetition.8.2The Sherman Act, the Clayton Act, the Federal Trade Commission Act, and theRobinson-Patman Act are the significant pieces of antitrust legislation in the UnitedStates.• A principal component of these acts is the prohibition of predatorypricing; i.e., deliberately setting prices below cost in an effort to drivecompetitors out of business and restrict supply. The company could thenraise prices.•Another prohibited practice in the area of antitrust is dumping. Thisoccurs when a non-U.S. company sells a product in the United States at aprice below market value in the country where it is produced.• A third practice is collusive pricing. This occurs when companies in anindustry conspire in their pricing and production decisions to achieve aprice above a competitive price and, therefore, restrains trade.Refer to Quiz Question 10 Problem 12-37 V. OTHER RESOURCESPlease visit the textbook companion website at . To download these and other resources, visit the Instructo r’s Resource Center or access them on the Instructor’s Resource DVD (IR-DVD).The following exhibits were mentioned in this chapter of the Instructor’s Manual, andhave been included in the PowerPoint Lecture presentation created specifically for this ch apter. You may use the PowerPoint Lecture presentations “as is”, or modify them tosuit your individual needs.Exhibit 12-1 illustrates the total cost of manufacturing Provalue using activity-basedcosting.Exhibit 12-2 summarizes operating income for Provalue across the value chain usingactivity-based costing.Exhibit 12-3 is a graphical representation of the pattern of locked-in costs and costincurrence.Exhibit 12-4 illustrates calculation of cost-driver rates at Provalue.Exhibit 12-6 illustrates the budgeting of life-cycle revenues and costs for a softwarepackage.Download pdf images of textbook illustrations and exhibits from the Image Library oraccess them via your IR-DVD.Solutions to Select End-of-Chapter Problems mentioned in this chapter, which havebeen fully worked out in PowerPoint, are available for download and included on the IR-DVD.CHAPTER 12 QUIZ1.Major influences of competitors, costs, and customers on pricing decisions are factors ofa.supply and demand.b.activity-based costing and activity-based management.c.key management themes that are important to managers attaining success in theirplanning and control decisions.d.the value-chain concept.2.Short-run pricing decisions includea.pricing a main product in a major market.b.considering all costs in the value chain of business functions.c.adjusting product mix and volume in a competitive market while maintaining astable price if demand fluctuates from strong to weak.d.pricing for a special order with no long-term implications.3.Burkhart Company manufactures a product that has a variable cost of $25 per unit. Fixedcosts total $1,000,000, allocated on the basis of the number of units produced. Sellingprice is computed by adding a 25% markup to full cost. How much should the sellingprice be per unit for 200,000 units?a. $31.25b. $42.00c. $37.50d. $30.004.The first step in implementing target pricing and target costing isa.choosing a target price.b.determining a target cost.c.developing a product that satisfies needs of potential customers.d.performing value engineering.5.The best opportunity for cost reduction isa.during the manufacturing phase of the value chain.b.during the product/process design phase of the value chain.c.during the marketing phase of the value chain.d.during the distribution phase of the value chain.The following data apply to questions 6 and 7.Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddon’s monthly sales are $500,000.6.The markup percentage on full cost to arrive at the target (existing) selling price isa. 25%.b. 75%.c. 80%.d. 20%.。
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Sales Value at Splitoff Example
成本与管理会计亨格瑞第13版英文版 CA16
Physical-Measure Method
Allocates joint costs to joint products on the basis of the relative weight, volume, or other physical measure at the splitoff point of total production of the products p455(577)
成本与管理会计亨格瑞第13版英文版 CA16
Physical-Measure Example p456(578)
成本与管理会计亨格瑞第13版英文版 CA16
Physical-Measure Example
成本与管理会计亨格瑞第13版英文版 CA16
Net Realizable Value Method
to sell immediately or process further and sell later
Joint Costs are sunk Separable Costs need to be evaluated for relevance individually
成本与管理会计亨格瑞第13版英文版 CA16
成本与管理会计亨格瑞第13版英文版 CA16
Joint Process Flowchart
成本与管理会计亨格瑞第13版英文版 CA16
Reasons for Allocating Joint Costs
Determination of inventoriable costs and cost of goods sold for external financial reporting and income tax determination. Determination of inventoriable costs and cost of goods sold for internal reporting purposes such as division profitability analysis. Cost reimbursement when a company has costreimbursement contracts as with a governmental agency.
成本与管理会计亨格瑞第13版英文版 CA16
Example p454(576)
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Illustration Overview
成本与管理会计亨格瑞第13版英文版 CA16
Sales Value at Splitoff Example
成本与管理会计亨格瑞第13版英文版 CA16
Sales value at splitoff Net Realizable Value (NRV) Constant Gross-Margin percentage NRV
成本与管理会计亨格瑞第13版英文版 CA16
Sales Value at Splitoff Method
Uses the sales value of the entire production of the accounting period to calculate allocation percentage Ignores inventories
Value can be high or low
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Terminology ，conts.
Main Product – output of a joint production process that yields one product with a high sales value compared to the sales values of the other outputs.P452(574) Joint Products – outputs of a joint production process that yields two or more products with a high sales value compared to the sales values of any other outputs Byproducts – outputs of a joint production process that have low sales values compare to the sales values of the other outputs
成本与管理会计亨格瑞 第13版英文版CA16
2020/11/10
成本与管理会计亨格瑞第13版英文版 CA16
Learning objectives
Identify the splitoff point in a joint-cost situation Distinguish joint products from byproducts Explain why joint costs are allocated to individual products Allocate joint costs using four methods Explain why the sales value at splitoff method is preferred
成本与管理会计亨格瑞第13版英文版 CA16
Example of Joint Cost stituation
成本与管理会计亨格瑞第13版英文版 CA16
Chart of Joint Cost Terminology
Separable Costs
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Terminology，conts.
Joint Cost Terminology
Joint Costs – costs of a single production process that yields multiple products simultaneously Splitoff Point – the place in a joint production process where two or more products become separately identifiable Separable Costs – all costs incurred beyond the splitoff point that are assignable to each of the nowidentifiable specific products
Byproducts
Two methods for accounting for byproducts
Production Method – recognizes byproduct inventory as it is created, and sales and costs at the time of sale Sales Method – recognizes no byproduct inventory, and recognizes only sales at the time of sales: byproduct costs are not tracked separately
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Allocation Methods
Physical Measures – allocate using tangible attributes of the products, such as pounds, gallons, barrels, etc. Market-Based – allocate using market-derived data (dollars):
when allocating joint costs Explain why joint costs are irrelevant in a sell-or-process-
further decision Account for byproducts using two methods
成本与管理会计亨格瑞第13版英文版 CA16
成本与管理会计亨格瑞第13版英文版 CA16
ห้องสมุดไป่ตู้
NRV Example p457(579)
成本与管理会计亨格瑞第13版英文版 CA16
NRV Example，conts.
成本与管理会计亨格瑞第13版英文版 CA16
NRV Example ，conts.
成本与管理会计亨格瑞第13版英文版 CA16
NRV Example ，conts.
Categories of Joint Process Outputs:
Outputs with a positive sales value Outputs with a zero sales value
Product – any output with a positive sales value, or an output that enables a firm to avoid incurring costs
成本与管理会计亨格瑞第13版英文版 CA16
成本与管理会计亨格瑞第13版英文版 CA16
Constant Gross Margin NRV Example
成本与管理会计亨格瑞第13版英文版 CA16
Method Selection
If selling price at splitoff is available, use the Sales Value at Splitoff Method.p459(581) If selling price at splitoff is not available, use the NRV Method If simplicity is the primary consideration, Physical-Measures Method or the Constant GrossMargin Method could be used Despite this, some firms choose not to allocate joint costs at all