会计学基础英文课件 (13)

Lesson 13 Managerial Accounting: Concepts and Principles
Task Team of FUNDAMENTAL ACCOUNTING
School of Business, Sun Yat-sen University
Outline
• What is managerial accounting? • Comparison between managerial accounting and financial accounting • Cost classifications in different ways • Flow of manufacturing activities • Job order cost accounting systems and process cost accounting systems • Cost allocation
Competition
5
Development of technology
Managerial Accounting and Financial Accounting
Financial Accounting
1. Users 2. Time focus 3. Emphasis 4. Importance 5. Subject focus 6. Requirements Investors, creditors, and other external users Historical perspective Objectivity and Verifiability Precision of information Summarized data for the whole organization Structured and often controlled by GAAP
Supervisory Salaries
Production Volume
16
Costs Classification by Controllability
• Controllable vs. not controllable
– depends upon the employee’s responsibilities. – Example: A lower level manager may have control over overtime costs but not over the purchase of high-cost machinery.
2
Introduction
• The previous 12 chapters focus on the financial accounting topics
– Please summarize the basic points of financial accounting
• Users/ Time focus/ Emphasis/ Importance/ Subject focus/ Requirements
6
Cost Classifications
• Costs can be classified by:
– Relevance – Behaviour – Controllability – Traceability – Function
7
Costs Classification by Relevance
Variable
Sales Commissions
Fixed
Monthly salary
Sales
15
Costs Classification by Behaviour
• Step-Wise Costs
– remain fixed over limited ranges of volumes but increase by a lump sum when volume increases beyond maximum amounts. – Example: additional production supervisors must be added when another shift is added.
•
Irrelevant
–
If costs do not influence a decision
8
Costs Classification by Relevance
• Sunk Costs
– All costs incurred in the past that cannot be changed by any decision made now or in the future. – should not be considered in decisions. – Irrelevant – Example: You bought an automobile that cost $30,000 two years ago. The $30,000 cost is sunk because whether you drive it, park it, trade it, or sell it, you cannot change the $30,000 cost.
Managerial Accounting
Managers, employees, and other internal users Future emphasis Relevance for planning and control Timeliness of information Detailed segment reports of an organization Relatively flexible (no GAAP)
• • • • • Products Services Departments Divisions Customer groups
18
Costs Classification by Traceability
4
The Environment of Managerial Accounting
Complexity and size of organizations Regulatory environment
Emphasis on quality Environment of Managerial Accounting
3
What is Managerial Accounting?
• An activity that provides financial and nonfinancial information to managers and other internal decision makers • Is quite important to planning, control, and decision making activities
• Variable costs
– change in proportion to changes in the volume of activity
12
Costs Classification by Behavior
• Total fixed costs remain unchanged when activity changes within a relevant range. • Fixed costs per unit decline as activity increases.
11
Costs Classification by Behavior
• Cost behavior refers to
– how a cost will react to changes in the level of business activity.
• Fixed costs
– do not change when activity changes.
•
Relevant
–
If costs influence a decision
• • • •
Costs that are applicable to a particular decision. Costs that should have a bearing on which alternative a manager selects. Costs that are avoidable. Future costs that differ between alternatives.
Fixed costs per unit Volume of Activity
13
Total fixed costs
Volume of Activity
Costs Classification by Behaviour
• Total variable costs change when activity changes. • Variable costs per unit do not change as activity increases.
17
Costs Classification by Traceability
• Management often traces costs to cost objects
– To obtain a better measure of their total cost – Cost objects include
10
Costs Classification by Relevance
• Opportunity Costs
– The potential benefit that is given up when one alternative is selected over another. – Example: If you were not attending college or university, you could be earning $25,000 per year. Your opportunity cost of attending college or university for one year is $25,000.