管理会计上海对外经贸大学参赛案例分析
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Weight of product shipped to product
Weight of product sold to product
Fixed operating
Cost driver
Sales and marketing cost
Top management Business administration
3. Analysis and Recommendations
Multiple choice
Produce in advance for
storage
Brand product MP
Develop new market through
special order
3. Analysis and Recommendations
Right now
Change
Net sales
Orders can be rejected within one year before deNlievtersyales
Variable manufacturing
Variable manufacturing
Fixed manufacturing Freight out
✓Contribution Margin ✓Operating Profit ✓Return on Investment ✓EVA
Conflict of interest between the company owner and the manager,
usually results from asymmetric information.
We recommend • Fine Foods set up a the contributions, improvements
accomplishments the employee has made, set different weight to them, and give the whole team an overall score and reward them。
Product Group Product Group
Time
Product
Product Group
Product Group
1. Considerations on Special Orders Accounting 1. Considerations on Special Orders
Freight
Strategic Development
MP —— Niche Market
in Mexico
Special Order —— Avant-garde for a
New Market
Market Share
2. Problems Of Special Orders
Request for these special orders come unexpectedly
•Weight •Weight
•Distance •Promotion time
Current
Recommendation
✓Sales and marketing ✓Corporate level
•Sales volume •Included
•Labor time •Exclude
ቤተ መጻሕፍቲ ባይዱ
Traditional Approach
Any possibility of existing in Fine Foods?
What types of centers are SMUs?
1
OpCeroasttinMgCaonsutfaCcetunRrteeinvrgenue
Factory
Decision OCpeenratetirng
Cost Center
Information systems Human resources
Supply management, etc.
Sales volume to product
Problems in Cost Allocation
Break the limits between product and department
Current
•Cost for 1 unit •Cost for 1 unit •Labor for 1 unit
Current
Recommendation
•Unchanged •Unchanged •Unchanged
Recommendation
✓Freight out ✓Media and Promotion
Labor Material Package Variable Product
Fixed
Fixed
Fixed
Variable
Direct Manufacturing
Variable Operating
Fixed Operating
✓Raw material ✓Package material ✓Labor
Weight
Product Groups Products
3 Fixed percentage
Production time
Products
Other Costs
Variable operating
Freight out
Media and sales production costs
Cost driver
Center 1
Evaluation
Method 2
Agency
Costs 3
In order to know how well a entity performs, you have to first know its responsibility,
and judge it only by this. Which one applies?
✓Maintenance ✓Workshop storage
✓Production line ✓Production line
Clearing ✓Engineering
✓Management ✓Environment ✓Quality
Cost Pool
Product Group
Recommendation
3
Should be first allocated to product groups, then to products
Cost Center
Manufacturing
Direct manufacturing
Indirect manufacturing
Operating
Corporate
SMU
Carrying Cost
Multiple choice
Develop new market through
special order
Minimize the inventory cost (Economic Optimal Quantity)
Restocking Cost Quantity
Brand product MP
Fixed Indirect Production Costs
I Assigned to factories by usage of activity
Factory
Steam boilers
2
Vehicles
Sanitation
Weight
Remaining cost
Fixed percentage
Assign to
! There can be more than only one cost driver, and more reasonable cost driver.
ABC Approach
Cost Object Cost Object
Indirect Manufacturing
Cost
Profit Center
Individual-based vs Team-based Evaluation
A
2
Problem in Fine Food
•No emphasis on the team performance of evaluation is found.
! Fine Foods should pay more attention to employees, not on managers and SMU as a unit
One-time Order
Other Considerations
Long-term Relationship
Short-term Pricing
Opportunity Cost
Joint Product
2. Benefits of Special Orders Flexibility Efficiency
✓Cost Center ✓Revenue Center ✓Profit Center ✓Investment Center
In different occasions, different methods of evaluation should be used, which one applies?
Cost Object Cost Object
Cost Object Cost Object
! Due to limited information, ABC is hard to implement.
Variable
✓Electricity ✓Steam ✓Water
✓Warehousing
Fixed
Change to
Freight out Contribution margin 1
Contribution margin 1
Accepts when CM1 >0
3. Analysis and Recommendations
Produce in advance for
storage
Cost
EOQ
Brand product MP
Multiple choice
Develop new market through
special order
Produce in advance for
storage
Significant Points in Performance Evaluation
Responsibility
Product Costing at Fine Foods
OUTLINE
• Cost Allocation • Special Order Dealing • Performance Evaluation • Cost Driver Modification
• Production Schedule Modification
Activity
Activity
Activity
Activity
1.Direct Costs & Indirect Costs 2. MP & Other Products
Variable Manufacturing Costs
Direct costs
Raw material Packaging material Direct production salaries
2. Problems & Benefits of Special Orders
Direct material
Direct labor3. Analysis and Recommendations
1. Considerations on Special Orders
Others
Idle Capacity
1
Operating costs Products
Some cost drivers are unfair and inaccurate
2
Heavy product Higher cost
Estimate Accurate
Some costs can’t be straightly traced to product
• Evaluation System Modification
• Recommendations Summary
Part of Material Cost
Part of Variable Operating Cost
Preparing Warehousing Processing Packaging
Indirect costs
Electricity, Steam Water
Warehouse
Cost driver
Material cost for one unit Material cost for one unit Labor time for one unit
Cost driver
Estimate Estimate Estimate
Weight of product sold to product
Fixed operating
Cost driver
Sales and marketing cost
Top management Business administration
3. Analysis and Recommendations
Multiple choice
Produce in advance for
storage
Brand product MP
Develop new market through
special order
3. Analysis and Recommendations
Right now
Change
Net sales
Orders can be rejected within one year before deNlievtersyales
Variable manufacturing
Variable manufacturing
Fixed manufacturing Freight out
✓Contribution Margin ✓Operating Profit ✓Return on Investment ✓EVA
Conflict of interest between the company owner and the manager,
usually results from asymmetric information.
We recommend • Fine Foods set up a the contributions, improvements
accomplishments the employee has made, set different weight to them, and give the whole team an overall score and reward them。
Product Group Product Group
Time
Product
Product Group
Product Group
1. Considerations on Special Orders Accounting 1. Considerations on Special Orders
Freight
Strategic Development
MP —— Niche Market
in Mexico
Special Order —— Avant-garde for a
New Market
Market Share
2. Problems Of Special Orders
Request for these special orders come unexpectedly
•Weight •Weight
•Distance •Promotion time
Current
Recommendation
✓Sales and marketing ✓Corporate level
•Sales volume •Included
•Labor time •Exclude
ቤተ መጻሕፍቲ ባይዱ
Traditional Approach
Any possibility of existing in Fine Foods?
What types of centers are SMUs?
1
OpCeroasttinMgCaonsutfaCcetunRrteeinvrgenue
Factory
Decision OCpeenratetirng
Cost Center
Information systems Human resources
Supply management, etc.
Sales volume to product
Problems in Cost Allocation
Break the limits between product and department
Current
•Cost for 1 unit •Cost for 1 unit •Labor for 1 unit
Current
Recommendation
•Unchanged •Unchanged •Unchanged
Recommendation
✓Freight out ✓Media and Promotion
Labor Material Package Variable Product
Fixed
Fixed
Fixed
Variable
Direct Manufacturing
Variable Operating
Fixed Operating
✓Raw material ✓Package material ✓Labor
Weight
Product Groups Products
3 Fixed percentage
Production time
Products
Other Costs
Variable operating
Freight out
Media and sales production costs
Cost driver
Center 1
Evaluation
Method 2
Agency
Costs 3
In order to know how well a entity performs, you have to first know its responsibility,
and judge it only by this. Which one applies?
✓Maintenance ✓Workshop storage
✓Production line ✓Production line
Clearing ✓Engineering
✓Management ✓Environment ✓Quality
Cost Pool
Product Group
Recommendation
3
Should be first allocated to product groups, then to products
Cost Center
Manufacturing
Direct manufacturing
Indirect manufacturing
Operating
Corporate
SMU
Carrying Cost
Multiple choice
Develop new market through
special order
Minimize the inventory cost (Economic Optimal Quantity)
Restocking Cost Quantity
Brand product MP
Fixed Indirect Production Costs
I Assigned to factories by usage of activity
Factory
Steam boilers
2
Vehicles
Sanitation
Weight
Remaining cost
Fixed percentage
Assign to
! There can be more than only one cost driver, and more reasonable cost driver.
ABC Approach
Cost Object Cost Object
Indirect Manufacturing
Cost
Profit Center
Individual-based vs Team-based Evaluation
A
2
Problem in Fine Food
•No emphasis on the team performance of evaluation is found.
! Fine Foods should pay more attention to employees, not on managers and SMU as a unit
One-time Order
Other Considerations
Long-term Relationship
Short-term Pricing
Opportunity Cost
Joint Product
2. Benefits of Special Orders Flexibility Efficiency
✓Cost Center ✓Revenue Center ✓Profit Center ✓Investment Center
In different occasions, different methods of evaluation should be used, which one applies?
Cost Object Cost Object
Cost Object Cost Object
! Due to limited information, ABC is hard to implement.
Variable
✓Electricity ✓Steam ✓Water
✓Warehousing
Fixed
Change to
Freight out Contribution margin 1
Contribution margin 1
Accepts when CM1 >0
3. Analysis and Recommendations
Produce in advance for
storage
Cost
EOQ
Brand product MP
Multiple choice
Develop new market through
special order
Produce in advance for
storage
Significant Points in Performance Evaluation
Responsibility
Product Costing at Fine Foods
OUTLINE
• Cost Allocation • Special Order Dealing • Performance Evaluation • Cost Driver Modification
• Production Schedule Modification
Activity
Activity
Activity
Activity
1.Direct Costs & Indirect Costs 2. MP & Other Products
Variable Manufacturing Costs
Direct costs
Raw material Packaging material Direct production salaries
2. Problems & Benefits of Special Orders
Direct material
Direct labor3. Analysis and Recommendations
1. Considerations on Special Orders
Others
Idle Capacity
1
Operating costs Products
Some cost drivers are unfair and inaccurate
2
Heavy product Higher cost
Estimate Accurate
Some costs can’t be straightly traced to product
• Evaluation System Modification
• Recommendations Summary
Part of Material Cost
Part of Variable Operating Cost
Preparing Warehousing Processing Packaging
Indirect costs
Electricity, Steam Water
Warehouse
Cost driver
Material cost for one unit Material cost for one unit Labor time for one unit
Cost driver
Estimate Estimate Estimate