成本与管理会计 亨格瑞 第13版 英文版 CA05

Peanut-butter costing uses broad averages to assign (or
spread) costs uniformly to cost objects. The result can be undercosting or overcosting of products.
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 each of these pools is homogeneous. Competition in 3. Cost-allocation basis identify the preferred cost-allocation base for each indirect-cost pool. •Strategic decision
Costs Activity Based Management (ABM) Value and non-value added costs
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LEARNING OBJECTIVE 1
Explain how broad averaging undercosts
and overcosts products or services
rational and systematic manner, using some type of averaging. There are a variety of methods to accomplish this goal.
Simple Methods Unrealistic
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markets
•Provide more data
•Multiple cost driver pools
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•Price decision •Market decision
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Refining a Costing System
A refined cost system reduces the use of broad
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The Need for ABC
Direct labor is a small percentage of total costs Product-line profit margins are hard to explain
Line managers do not believe the product costs reports Some products that have reported high profit margins are not sold by competitors
CHAPTER 5
Activity-Based Costing and Activity-Based Management
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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 hiera来自百度文库chy Cost products or services using activity-based costing Explain how activity-based costing systems are used in activity-based management Compare activity-based costing systems and department costing systems Evaluate the costs and benefits of implementing activitybased costing systems
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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
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Broad Averaging and Cross-subsidization, conts.
Different products consume activities at different
rates, traditional costing does not recognize these differences.


Overcosting – a product consumes a low level of resources but is allocated high costs per unit (Emma’s dinner) Undercosting – a product consumes a high level of resources but is allocated low costs per unit (James’s dinner)
Complex Methods Realistic
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Broad Averaging and Cross-subsidization
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entree
dessert
drinks
total
emma
james
11
20
0
8
4
14
15
42
jessica
matthew total
15
14 60
4
4 16
8
6 32
averages for assigning costs to resources. There are three principal reasons that have accelerated the demand for such refinements.P115
Increase in product diversity. The growing demand
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.
Increase in indirect costs. With modern technology,
companies have experienced a decrease in direct costs with a resulting increase in indirect costs. Competition in product markets. Markets have become more competitive, forcing managers to obtain more accurate cost information to help them make strategic decisions.
costing system
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Rationale for Refining Costing System
Increase in product diversity •Customized products
•Differentiate from competitors
Guidelines for Refining
Increase in Indirect Costs
a cost systems
Advance in product and process technology increase indirect cost, lower direct costs
Advances in IT •Make trace more costeffective
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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
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Sales are increasing, but profits are declining.
Marketing does not use costs reports for pricing decisions
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LEARNING OBJECTIVE 2
Present three guidelines for refining a
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24 108
average
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4
8
27
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Broad Averaging and Cross-subsidization,conts.
Historically, firms produced a limited variety of goods
while their indirect costs were relatively small. 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. Traditional product-costing methods use a single indirect cost rate to allocate costs to all products.
for customized products has led to product diversity with the result that products demand differing levels of resources.
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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.
8
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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