成本与管理会计亨格瑞第13版英文版CA05
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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》习题及答案 costacctg13_SolPPT_ch20
Annual demand for denim cloth Ordering cost per purchase order Carrying cost per year Safety-stock requirements Cost of denim cloth
The purchasing officer of the Cloth Center has collected the following information:
Exercise 20-18
EOQ for a retailer The Cloth Center sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing lead time is 2 weeks. The Cloth Center is open 250 days a year (50 weeks for 5 days a week).
Exercise 20-32
Supply chain effects on total relevant inventory cost Cow Spot Computer Co. outsources the production of motherboards for its computers. It has narrowed down its choice of suppliers to two companies: Maji and Induk. Maji is an older company with a good reputation, while Induk is a newer company with cheaper prices. Given the difference in reputation, 5% of the motherboards will be inspected if they are purchased from Maji, but 25% of the motherboards will be inspected if they are purchased from Induk.
The purchasing officer of the Cloth Center has collected the following information:
Exercise 20-18
EOQ for a retailer The Cloth Center sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing lead time is 2 weeks. The Cloth Center is open 250 days a year (50 weeks for 5 days a week).
Exercise 20-32
Supply chain effects on total relevant inventory cost Cow Spot Computer Co. outsources the production of motherboards for its computers. It has narrowed down its choice of suppliers to two companies: Maji and Induk. Maji is an older company with a good reputation, while Induk is a newer company with cheaper prices. Given the difference in reputation, 5% of the motherboards will be inspected if they are purchased from Maji, but 25% of the motherboards will be inspected if they are purchased from Induk.
成本与管理会计亨格瑞第13版英文版CA02
➢ Cannot be conveniently or economically traced (tracked) to a cost object. Instead of being traced, these costs are allocated to a cost object in a rational and systematic manner
different purposes Describe a framework for cost accounting and cost management
2020/10/8
Learning objective 1 Define and illustrate a cost object
2-3
2020/10/8
companies, and service-sector companies Describe the three categories of inventories commonly found in
manufacturing companies Distinguish inventoriable costs from period costs Explain why product costs are computed in different ways for
Following accumulation, costs are assigned to the chosen cost object. involves tracing and allocating costs
✓ Tracing：accumulated costs with a direct relationship to the cost object
different purposes Describe a framework for cost accounting and cost management
2020/10/8
Learning objective 1 Define and illustrate a cost object
2-3
2020/10/8
companies, and service-sector companies Describe the three categories of inventories commonly found in
manufacturing companies Distinguish inventoriable costs from period costs Explain why product costs are computed in different ways for
Following accumulation, costs are assigned to the chosen cost object. involves tracing and allocating costs
✓ Tracing：accumulated costs with a direct relationship to the cost object
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 CA05
8
2012-10-5
Broad Averaging and Cross-subsidization,conts.
When a company has a situation in which
undercosting or overcosting of products occurs, this is referred to as product-cost cross-subsidization. P110
costing system
2012-10-5
11
Rationale for Refining Costing System
Increase in product diversity •Customized products
•Differentiate from competitors
Guidelines for Refining
2012-10-5
4
Background
Easy to trace Direct materials and direct labor costs
Overhead cannot be traced easily and must be allocated with estimates.
Recall that Factory Overhead is applied to production in a
rational and systematic manner, using some type of averaging. There are a variety of methods to accomplish this goal.
Simple Methods Unrealistic
2012-10-5
Broad Averaging and Cross-subsidization,conts.
When a company has a situation in which
undercosting or overcosting of products occurs, this is referred to as product-cost cross-subsidization. P110
costing system
2012-10-5
11
Rationale for Refining Costing System
Increase in product diversity •Customized products
•Differentiate from competitors
Guidelines for Refining
2012-10-5
4
Background
Easy to trace Direct materials and direct labor costs
Overhead cannot be traced easily and must be allocated with estimates.
Recall that Factory Overhead is applied to production in a
rational and systematic manner, using some type of averaging. There are a variety of methods to accomplish this goal.
Simple Methods Unrealistic
成本与管理会计-亨格瑞-第13版-英文版-CA08_图文_图文
Commit more resources to develop appropriate standards
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.
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-亨格瑞-第13版-英文版-CA05
effective
base for each indirect-cost pool.
•Strategic decision
•Provide more data
•Price decision
•Multiple cost driver pools
•Market decision
2019/9/7
12
Refining a Costing System
2019/9/7
2
Structure of Lecture
Under- and over-costing – why it happens? Activity Based Costing (ABC) Indicators of need for ABC ABC system Difference between ABC and Traditional Product
Peanut-butter costing uses broad averages to assign (or spread) costs uniformly to cost objects.
The result can be undercosting or overcosting of products.
Increase in indirect costs. With modern technology, companies have experienced a decrease in direct costs with a resulting increase in indirect costs.
2019/9/7
4
Background
Easy to trace Direct materials and direct labor costs Overhead cannot be traced easily and must be
成本管理-成本与管理会计亨格瑞第13版英文版CA06 精品
Operating budgets include budgets reflecting the planned operational aspects of the business, including revenues, production, manufacturing costs, and other expenses for the period. It culminates in a budgeted income statement.
Effective budgeting integrates the company’s strategy into the budget process.
2021/2/14
3
Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. P142(182)
What organizational and financial structures serve us best?
What are the risks and opportunities of alternative strategies, and what are our contingency plans if our preferred plan fails?
It is a time consuming process that involves all levels of management.
Management at all levels should understand and support the budget. If top management support is lacking, the budget effort will be lackluster and half hearted.
Effective budgeting integrates the company’s strategy into the budget process.
2021/2/14
3
Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. P142(182)
What organizational and financial structures serve us best?
What are the risks and opportunities of alternative strategies, and what are our contingency plans if our preferred plan fails?
It is a time consuming process that involves all levels of management.
Management at all levels should understand and support the budget. If top management support is lacking, the budget effort will be lackluster and half hearted.
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 亨格瑞 第13版 英文版 CA02
管理分析的方法与指标
添加 标题
财务比率分析：通过计算各种财务比率，如 流动比率、速动比率、存货周转率等，来评 估企业的偿债能力、营运能力和盈利能力。
添加 标题
结构分析：通过分析财务报表中各项目的构 成比例，了解企业各项业务的比重和结构特 点。
添加 标题
因素分析：通过分析影响企业财务状况的各 种因素，如市场环境、政策变化等，预测未 来的发展趋势。
间接成本法
定义：间接成本法是一种将间接成本分配到产品或服务中的成本计算方法
特点：将间接成本与直接成本一起分配到产品或服务中，以计算产品的总成本
适用范围：适用于生产过程中存在大量间接成本的情况
计算方法：根据不同的分配标准，如人工小时、机器工时等，将间接成本分配到产品或 服务中
作业成本法
定义：作业成本法是一种基于作业的成本核算方法，通过对作业进行成本分配，计算出产品或服 务的成本。
提供支持
现代管理会计： 进入21世纪，管 理会计更加注重 战略决策、风险 管理、绩效评价 等方面，成为企 业核心竞争力的
重要组成部分
管理会计的未来 发展：随着科技 的不断进步和全 球化的趋势，管 理会计将更加注 重数据分析和预 测，为企业提供 更加全面、精准
的支持
管理会计的基本原则和概念
管理会计的定义和目的 管理会计的基本原则 管理会计的概念框架 管理会计与财务会计的区别和联系
添加标题
成本会计的基本内容：成本会计主要包括成本核算、成本分析、成本控制等方面。其中，成本核算是对企业 生产经营过程中的各种成本进行分类、归集和分配的过程；成本分析是对企业成本进行比较、分析和评价的 过程；成本控制则是通过制定一系列措施，对企业生产经营过程中的成本进行监督和控制的过程。
财务管理英文第十三版ch5_shenbsxw.pptx
5-20
Wheaton, Inc. pays a constant annual dividend. Last year, the dividend yield was 3.6 percent when the stock was selling for $28 a share. What is the current price of the stock if the current dividend yield is 3.2 percent?
Certainty equivalent > Expected value Risk Preference
Certainty equivalent = Expected value Risk Indifference
Certainty equivalent < Expected value Risk Aversion
What rate will you actually earn? Does it matter if it is a bank CD or a share
of stock?
5-5
Determining Expected Return (Discrete Dist.)
n
R
=
S
i=1
(
Ri
)(
Pi
)
5-3
Return Example
The stock price for Stock A was $10 per share 1 year ago. The stock is currently
trading at $9.50 per share, and shareholders just received a $1 dividend. What return was earned over the past year?
Wheaton, Inc. pays a constant annual dividend. Last year, the dividend yield was 3.6 percent when the stock was selling for $28 a share. What is the current price of the stock if the current dividend yield is 3.2 percent?
Certainty equivalent > Expected value Risk Preference
Certainty equivalent = Expected value Risk Indifference
Certainty equivalent < Expected value Risk Aversion
What rate will you actually earn? Does it matter if it is a bank CD or a share
of stock?
5-5
Determining Expected Return (Discrete Dist.)
n
R
=
S
i=1
(
Ri
)(
Pi
)
5-3
Return Example
The stock price for Stock A was $10 per share 1 year ago. The stock is currently
trading at $9.50 per share, and shareholders just received a $1 dividend. What return was earned over the past year?
成本与管理会计 亨格瑞 第 英文版
Costs ➢Activity Based Management (ABM) ➢Value and non-value added costs
2020/4/17
3
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
2020/4/17
6
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-
2020/4/17
3
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
2020/4/17
6
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
suits. What is the static-budget operating profit
2023/10/13
10
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
2023/10/13
Prepared at the end of the period, once actual costs are known
3 step process
2023/10/13
20
2023/10/13
21
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
2023/10/13
12
2023/10/13
13
Static-Budget Variance
A static-budget variance is : Actual result - Budgeted amount in the static budget .
2023/10/13
10
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
2023/10/13
Prepared at the end of the period, once actual costs are known
3 step process
2023/10/13
20
2023/10/13
21
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
2023/10/13
12
2023/10/13
13
Static-Budget Variance
A static-budget variance is : Actual result - Budgeted amount in the static budget .
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Increase in indirect costs. With modern technology, companies have experienced a decrease in direct costs with a resulting increase in indirect costs.
When a company has a situation in which undercosting or overcosting of products occurs, this is referred to as product-cost cross-subsidization. P110
Background
Easy to trace Direct materials and direct labor costs
Overhead cannot be traced easily and must be allocated with estimates.
Recall that Factory Overhead is applied to production in a rational and systematic manner, using some type of averaging.
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
Broad Averaging and Cross-subsidization,conts.
Historically, firms produced a limited variety of goods while their indirect costs were relatively small.
Present three guidelines for refining a costing system
Rationale for Refining Costing System
Increase in product diversity
Increase in Indirect Costs
•Customized products
Increase in product diversity. The growing demand for customized products has led to product diversity with the result that products demand differing levels of resources.
Allocating overhead costs was simple: use broad averages to allocate costs uniformly regardless of how they are actually incurred
The use of broad averages in allocating indirect costs can have a number of adverse consequences.
Advance in product and
•Differentiate from competitors
process technology increase indirect cost,
Guidelines for Refining a cost systems lower direct costs
The result can be undercosting or overcosting of products.
Overcosting – a product consumes a low level of resources but is allocated high costs per unit (Emma’s dinner)
1. Direct-cost tracing
classify as many of the total costs as
direct costs as is economically feasible.
2. Indirect-cost pools
expand the number of cost pools until
Refining a Costing System,conts
Three guidelines are presented for refining a costing system.
Costs ➢Activity Based Management (ABM) ➢Value and non-value added costs
LEARNING OBJECTIVE 1
Explain how broad averaging undercosts and overcosts products or services
Advances in IT
each of these pools is homogeneous. Competition in markets
3. Cost-allocation basis
•Make trace more cost- identify the preferred cost-allocation
成本与管理会计亨格瑞 第13版英文版CA05
2020年7月14日星期二
LEARNING OBJECTIVES
Explain how broad averaging undercosts and overcosts products or services
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-
of total costs
Sales are increasing, but profits are declining.
Marketing does not use costs reports for
pricing decisions
Product-line profit margins are hard
There are a variety of methods to accomplish this goal.
Simple Methods Unrealistic
Complex Methods Realistic
Broad Averaging and Cross-subsidization
P110
effective
base for each indirect-cost pool.
•Strategic decision
•Provide more data
•Price decision
•Multiple cost driver pools
•Market decision
Refining a Costing System
The results of overcosting one product and undercosting another.
The overcosted product absorbs too much cost, making it seem less profitable than it really is.
The undercosted product is left with too little cost, making it seem more profitable than it really is.
The Need for ABC
Direct labor is a small percentage
to explain
Line managers do not believe the product costs reports
Some products that have reported high profit margins are not sold by competitors
LEARNING OBJECTIVE 2
Traditional product-costing methods use a single indirect cost rate to allocate costs to all products.
Broad Averaging and Cross-subsidization, conts.
Refining a Costing System,conts
A refined cost system reduces the use of broad averages for assigning costs to resources. There are three principal reasons that have accelerated the demand for such refinements.
When a company has a situation in which undercosting or overcosting of products occurs, this is referred to as product-cost cross-subsidization. P110
Background
Easy to trace Direct materials and direct labor costs
Overhead cannot be traced easily and must be allocated with estimates.
Recall that Factory Overhead is applied to production in a rational and systematic manner, using some type of averaging.
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
Broad Averaging and Cross-subsidization,conts.
Historically, firms produced a limited variety of goods while their indirect costs were relatively small.
Present three guidelines for refining a costing system
Rationale for Refining Costing System
Increase in product diversity
Increase in Indirect Costs
•Customized products
Increase in product diversity. The growing demand for customized products has led to product diversity with the result that products demand differing levels of resources.
Allocating overhead costs was simple: use broad averages to allocate costs uniformly regardless of how they are actually incurred
The use of broad averages in allocating indirect costs can have a number of adverse consequences.
Advance in product and
•Differentiate from competitors
process technology increase indirect cost,
Guidelines for Refining a cost systems lower direct costs
The result can be undercosting or overcosting of products.
Overcosting – a product consumes a low level of resources but is allocated high costs per unit (Emma’s dinner)
1. Direct-cost tracing
classify as many of the total costs as
direct costs as is economically feasible.
2. Indirect-cost pools
expand the number of cost pools until
Refining a Costing System,conts
Three guidelines are presented for refining a costing system.
Costs ➢Activity Based Management (ABM) ➢Value and non-value added costs
LEARNING OBJECTIVE 1
Explain how broad averaging undercosts and overcosts products or services
Advances in IT
each of these pools is homogeneous. Competition in markets
3. Cost-allocation basis
•Make trace more cost- identify the preferred cost-allocation
成本与管理会计亨格瑞 第13版英文版CA05
2020年7月14日星期二
LEARNING OBJECTIVES
Explain how broad averaging undercosts and overcosts products or services
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-
of total costs
Sales are increasing, but profits are declining.
Marketing does not use costs reports for
pricing decisions
Product-line profit margins are hard
There are a variety of methods to accomplish this goal.
Simple Methods Unrealistic
Complex Methods Realistic
Broad Averaging and Cross-subsidization
P110
effective
base for each indirect-cost pool.
•Strategic decision
•Provide more data
•Price decision
•Multiple cost driver pools
•Market decision
Refining a Costing System
The results of overcosting one product and undercosting another.
The overcosted product absorbs too much cost, making it seem less profitable than it really is.
The undercosted product is left with too little cost, making it seem more profitable than it really is.
The Need for ABC
Direct labor is a small percentage
to explain
Line managers do not believe the product costs reports
Some products that have reported high profit margins are not sold by competitors
LEARNING OBJECTIVE 2
Traditional product-costing methods use a single indirect cost rate to allocate costs to all products.
Broad Averaging and Cross-subsidization, conts.
Refining a Costing System,conts
A refined cost system reduces the use of broad averages for assigning costs to resources. There are three principal reasons that have accelerated the demand for such refinements.