管理会计上海对外经贸大学参赛案例分析

Some cost drivers are unfair and inaccurate
Heavy product
2
Higher cost
Estimate Accurate
Some costs can't be straightly traced to product
3
Should be first allocated to product groups, then to products
ABC Approach
Cost Object Cost Object
Indirect Manufacturing
Cost
Cost Object Cost Object
Cost Object Cost Object
! Due to limited information, ABC is hard to implement.
Weight of product shipped to product Weight of product sold to product
Fixed operating
Cost driver
Sales and marketing cost
Top management Business administration Information systems
Cost Center
Manufacturing
Direct manufacturing
Indirect manufacturing
Operating
Corporate
SMU
Labor Material Package Variable Product
Fixed
Fixed
Fixed
Variable
Weight
Product Groups Products
3 Fixed percentage
Production time
Products
Other Costs
Variable operating
Freight out Media and sales production costs
Cost driver
? Evaluation System Modification
? Recommendations Summary
Part of Material Cost
Part of Variable Operating Cost
Preparing Warehousing Processing
Activity
Direct Manufacturing
Variable Operating
Fixed Operating
?Raw material ?Package material ?Labor
Current
?Cost for 1 unit ?Cost for 1 unit ?Labor for 1 unit
Fixed Indirect Production Costs
I Assigned to factories by usage of activity
Factory
Steam boilers
2
Vehicles
Sanitation
Weight
Remaining cost
ห้องสมุดไป่ตู้
Fixed percentage
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
Variable
?Electricity ?Steam ?Water
?Warehousing
Fixed
?Maintenance ?Workshop storage
?Production line ?Production line
Clearing ?Engineering
?Management ?Environment ?Quality
Human resources Supply management, etc.
Sales volume to product
Problems in Cost Allocation
Break the limits between product and department
1
Operating costs Products
Activity
Activity
Packaging Activity
1.Direct Costs & Indirect Costs 2. MP & Other Products
Variable Manufacturing Costs
Direct costs
Raw material Packaging material Direct production salaries
Cost Pool
?Sales and marketing ?Corporate level
?Sales volume ?Included
?Labor time ?Exclude
Traditional Approach
Assign to
! There can be more than only one cost driver, and more reasonable cost driver.
Current
Recommendation
?Unchanged ?Unchanged ?Unchanged
Recommendation
?Freight out ?Media and Promotion
?Weight ?Weight
?Distance ?Promotion time
Current
Recommendation
Product Costing at Fine Foods
OUTLINE
? Cost Allocation ? Special Order Dealing ? Performance Evaluation ? Cost Driver Modification
? Production Schedule Modification