会计学：企业决策的基础（管理会计分册）（原书第19版）课件 -Chap020 Cost-Volume-Profit Analysis

Chapter20Cost-Volume-ProfitAnalysisIntroduction:PumaAGManycompanieshavegottenveryseriousaboutcontrollingcosts.AtPumaAG,executivesarealsokeenlyawareofthestrategicimportanceofproductmixmanagement.Bygatheringinformationaboutmarketdemandandcombiningitwithamarketingstrategythatfocusesonhighermarginproducts,Pumahasbeenabletosurviveinacrowdedmarketplacebyreinventingitself.Pumaexecutivesunderstandtheeconomicconsequencesofcoststructure,contributionmargin,andbreak-evensensitivityonthecompany’sprofitabilityandstrategicdecisionmaking.Moreover,theyrealizethatPuma’scontinuedsuccessdepends,inlargepart,ontheirhandlingofresourceconstraints,productionbottlenecks,andanarrayofcomplexnonfinancialissues.Introduction:CVPAnalysisCVPanalysisisameansoflearninghowcostsandprofitsbehaveinresponsetochangesinthelevelofbusinessactivity.Anunderstandingoftheserelationshipsisessentialindevelopingplansandbudgetsforfuturebusinessoperations.KEYPOINTTheconceptsofcost-volume-profitanalysismaybeappliedtothebusinessasawhole;toindividualsegmentsofthebusinesssuchasadivision,abranch,oradepartment;ortoaparticularproductline.Introduction:CVPAnalysis(cont.)Cost-volume-profitanalysismaybeusedbymanagerstoanswerquestionssuchasthefollowing:Whatlevelofsalesmustbereachedtocoverallexpenses,thatis,tobreakeven?Howmanyunitsofaproductmustbesoldtoearnaspecificoperatingincome?Whatwillhappentoourprofitabilityifweexpandcapacity?Whatwillbetheeffectofchangingsalespeople’scompensationfromfixedmonthlysalariestoacommissionof10percentonsales?Ifweincreaseourspendingonadvertisingto$100,000permonth,whatincreaseinsalesvolumewillberequiredtomaintainourcurrentlevelofincomefromoperations?BusinessforIllustration:McKinleyToillustratetherelationshipsbetweencostsandactivitylevels,weexaminetheoperationofMcKinleyAirlines,asmallcharterservicebasedinFairbanks,Alaska.Assumethattheaveragemonthlycostofoperatingtheairlineis$66,000.Airlinesoftenconsiderpassengermilesflowntobetheirmostsignificantcostdriver.Accordingly,wewillusethismeasurementforstudyingthebehaviorofcostsatMcKinleyAirlines.Havingidentifiedpassengermilesasanappropriateactivitybase,wewillnextclassifyeachoftheairline’soperatingcostsintooneofthreebroadcategories:fixedcosts,variablecosts,andsemivariablecosts.FixedCostsFixedcostsarethosecostsandexpensesthatdonotchangesignificantlyinresponsetochangesinanactivitybase.McKinley’sdepreciationexpenseisanexampleofafixedcost,asthemonthlydepreciationexpensedoesnotvarywiththenumberofpassengermilesflown.KEYPOINTDependingonthenatureofaparticularbusiness,fixedcostscanalsoincludeadministrativeandexecutivesalaries,propertytaxes,rentsandleases,andmanytypesofinsuranceprotection.VariableCostsAvariablecostisonewhosetotalrisesorfallsinapproximateproportiontochangesinanactivitybase.McKinley’sfuelexpenseisanexampleofavariablecost,asitchangesinapproximateproportiontothenumberofpassengermilesflown.Forinstance,iftotalpassengermilesweretoincreaseby10percentinagivenmonth,wewouldexpecttoseeasimilarincreaseinfuelexpense.SemivariableCostsSemivariablecostsaresometimescalledmixedcostsbecausetheycontainbothafixedandavariablecomponent.ThemonthlyfeeMcKinleypaystotheFairbanksairportisagoodexampleofasemivariablecost,sinceitcontainsbothafixedbaserateandanaddedchargeforeachpassengermileflown.ThefixedportionpertainstotherentalofhangarspaceforMcKinley’saircraft,whichremainsconstantregardlessofitsflightactivity.Thevariableportionpertainstotheairline’suseofthepassengerterminal.InternationalCaseinPointIdentifyingandseparatingfixedandvariablecostsisnoteasy.Thistaskissignificantlymorecomplicatedwhenproductsaremanufacturedinandtransferredbetweeninternationallocations.Forexample,inJordan,becauseofculturalandlegaldifferences,somecoststhatmightbeclassifiedasfixedcostsintheUnitedStatesareclassifiedasvariablecostsinJordanianaccountsorviceversa.Examplesofthecostsimpactedareproductwarranty,freightexpenses,interestexpenses,andwages.Culturallyacceptablemethodsfordelayingpayments,bargainingforlowersalesprices,andbureaucraticdelaysmaytransformacostthoughtofasvariableintheUnitedStatesintoafixedrecurringexpenseinaninternationallocation.InJordan,forinstance,clearingitemsthroughcustomstakesinordinatenumbersofrepeatvisitstoairportsorseaportsandisfrequentlymentionedasanadditionalcostofdoingbusinessinJordan.CostInformationforMcKinleyAirlinesGraphicAnalysisofOperatingCostsAverageCostperPassengerMileCostsperPassengerMileTheBehaviorofper-UnitCostsYourTurn:ManagerAmericanAirlinesAssumethatyouarethemanagerofgroundoperationsforAmericanAirlinesatDetroitMetroAirport.YouhavejustbeeninformedthattheplanesizebetweenPhiladelphiaandDetroitwillbeincreasedfromaBoeing737toa747andisexpectedtogenerate50additionalpassengersperflight.Whatgroundoperationscostsdoyouthinkwillincreasebecauseoftheadditional50passengersperflight?Whatgroundoperationscostswillnotbeaffected?EconomiesofScaleEconomiesofscalereferstothereductioninunitcostsbyusingthecompany’sproductiveassetsmoreefficiently.Toillustrate,assumethatanautomobileplantincursfixedcostsof$8.4millionpermonthandhasthecapacitytoproduce7,000automobilespermonth.EconomiesofScale(cont.)Economiesofscalearemostapparentinbusinesseswithhighfixedcosts,suchas:AirlinesOilrefineriesSteelmillsUtilitycompaniesKEYPOINTMostlargecompaniesautomaticallyrealizesomeeconomiesofscale.Thisisoneofthereasonswhyitisdifficultforasmallcompanytocompetewithamuchlargerone.Butsmallercompaniesalsocanrealizetheirowneconomiesofscalebyusingtheirfacilitiesasintensivelyaspossible.CaseinPoint:SouthwestAirlinesManyairlines,includingsomeofthenation’slargest,havebeenlosingmoneyinrecentyears.ButrelativelysmallSouthwestAirlineshasbeendoingverywell.Why?BecauseSouthwestoperatesatornearfullcapacity—thatis,withapayingpassengerinalmosteveryseat.Asaresult,Southwestincurslowerfixedcostsperpassengermilethanitscompetitors.ThisenablesSouthwesttoearnahigherprofitmarginthanmostairlinesandtoofferverycompetitivefares—whichkeepsthoseseatsfull.AdditionalCostBehaviorPatternsAdditionalCostBehaviorPatterns(cont.1)Takingallthepossiblevariationsofcostbehaviorintoaccountwouldaddgreatlytothecomplexityofcost-volumeanalysis.Unusualpatternsofcostbehaviortendtooffsetoneanother.Unusualpatternsofcostbehavioraremostlikelytooccuratextremelyhighorextremelylowlevelsofvolume.Forexample,ifoutputwereincreasedtonear100percentofplantcapacity,variablecostswouldcurvesharplyupwardbecauseofpaymentsforovertime.Anextremedeclineinvolume,ontheotherhand,mightrequireshuttingdownplantsandextensivelayoffs,therebyreducingsomeexpendituresthatareusuallyconsideredfixedcosts.AdditionalCostBehaviorPatterns(cont.2)Mostbusinesses,however,operatesomewherebetweenperhaps45percentand80percentofcapacityandtrytoavoidlargefluctuationsinvolume.Therangeoverwhichoutputmaybeexpectedtovaryiscalledtherelevantrange.CostBehaviorandOperatingIncomeOperatingincomeiscomputedasfollows.Thisbasicrelationshipsetsthestageforintroducingcost-volume-profitanalysis,awidelyusedmanagementplanningtool.Cost-volume-profitanalysisisoftencalledbreak-evenanalysis,inreferencetothepointatwhichtotalrevenueexactlyequalstotalcost.Thebreak-evenpointmaybedefinedasthelevelofactivityatwhichoperatingincomeisequaltozero.Itscomputationoftenservesasastartingpointindecisionsinvolvingcost-volume-profitrelationships.CVP:ImportantPointsThetermprofitincost-volume-profitanalysisreferstooperatingincome,notnetincome.Thisisbecauseincometaxesandnonoperatinggainsandlossesdonotpossessthecharacteristicsofvariableorfixedcosts.Cost-volume-profitanalysisconveysverylittleinformationaboutcashflows.Revenue,forexample,oftenresultsfrombothcashandcreditsales,whereasexpensesoftenresultfrombothcashpaymentsandchargesmadeonaccount.CVPAnalysis:AnIllustrationAssumethatSnowGlideCompanymanufacturesentry-levelsnowboards.ThecompanycurrentlysellsitsproducttowholesaledistributorsinColorado,Washington,andOregon.Becauseofthepopularityofsnowboarding,thecompanyisconsideringdistributingtoseveralEastCoastwholesalersaswell.Althoughwholesalepricesvarydependingonthequantityofboardspurchasedbyadistributor,revenueconsistentlyaverages$90perboardsold.Illustration:SnowGlide’sOperatingInformationIllustration:MonthlyCVPGraphContributionMargin:AKeyRelationshipContributionMarginatSnowGlideHowManyUnitsMustWeSell?Theconceptofcontributionmarginprovidesaquickmeansofdeterminingtheunitsalesvolumerequiredforabusinesstobreakevenorearnanydesiredlevelofoperatingincome.Knowingthebreak-evensalesvolumecanbeofvitalimportance,especiallytocompaniesdecidingwhethertointroduceanewproductline,buildanewplantor,insomecases,remaininbusiness.HowManyUnitsMustSnowGlideSell?Givenacontributionmarginof$54fromeachboard,thecompanymustsell700unitspermonthtobreakeven,asfollows.Thisreasoningcanbetakenonestepfurthertofindnotonlytheunitsalesvolumeneededtobreakevenbutalsotheunitsalesvolumeneededtoachieveanydesiredlevelofoperatingincome.Thefollowingformulaenablesustodothis.Forexample,howmanysnowboardsmustSnowGlideselltoearnamonthlyoperatingincomeof$5,400?HowManyDollarsinSalesMustWeGenerate?Tofindthedollarsalesvolumeacompanymustgenerateforagiventargetofoperatingincome,wecouldfirstcomputetherequiredsalesvolumeinunitsandthenmultiplyouranswerbytheaveragesellingpriceperunit.Takingamoredirectapproachtocomputetherequiredsalesvolume,wecansimplysubstitutethecontributionmarginratioforthecontributionmarginperunitinourCVPformula,asfollows.Toillustrate,letusagaincomputethesalesvolumerequiredforSnowGlidetoearnamonthlyoperatingincomeof$5,400.WhatIsOurMarginofSafety?Thedollaramountbywhichactualsalesvolumeexceedsthebreak-evensalesvolumeiscalledthemarginofsafety.Italsorepresentsthedollaramountbywhichsalescandeclinebeforeanoperatinglossisincurred.SnowGlide’smonthlysalesvolumerequiredtobreakevenisasfollows.Thus,ifmonthlysalestotal$73,000,themarginofsafetyforthatmonthis$10,000($73,000−$63,000).Themarginofsafetycanprovideaquickmeansofestimatingoperatingincomeatanyprojectedsaleslevel.Thisrelationshipissummarizedasfollows.BusinessApplicationsofCVP:SnowGlideTheuseofcost-volume-profitanalysisisnotlimitedtoaccountants.Toillustrate,letusconsiderseveralwaysinwhichcost-volume-profitrelationshipsmightbeusedbythemanagementofSnowGlideCompany.Aspreviouslymentioned,thepopularityofsnowboardinghaspromptedSnowGlidetoconsiderdistributiontoEastCoastwholesalers.Differentmanagerswithinthecompanywillnaturallyhavedifferent,yetinterrelated,planningconcernsregardingtheimplementationofthisnewmarketstrategy.SnowGlide:DirectorofAdvertisingAssumethatSnowGlideiscurrentlysellingapproximately900snowboardseachmonth.Inresponsetothenewmarketstrategy,thecompany’sdirectorofadvertisingisaskingforanincreaseof$1,500inhermonthlybudget.SheplanstousethesefundstoadvertiseinseveralEastCoasttradepublications.Fromherexperience,sheisconfidentthattheadvertisementswillresultinmonthlyordersfromEastCoastdistributorsfor500boards.Shewishestoemphasizetheimpactofherrequestonthecompany’soperatingincome.SnowGlide:DirectorofAdvertising(cont.)Webeginbycalculatingthecompany’scurrentmonthlyincomebasedoncurrentsalesof900units.Wewillthencomputeestimatedmonthlyincomebasedon1,400units,takingintoaccounttheadditionaladvertisingcostsof$1,500.SnowGlide:DirectorofAdvertising(concluded)Astheproposedadvertisingisviewedasafixedcost,thisexpendituredoesnotaffectSnowGlide’scontributionmarginratioof60percent.Basedonprojectedmonthlysalesof$126,000(1,400

units×$90),theprojectedmonthlyoperatingincomecanbedeterminedasfollows.Thetargetincomefigureis$25,500higherthanthepresentmonthlyfigureof$10,800

($36,300−$10,800=$25,500).Thus,thedirectorofadvertisingbelievesthatherrequestforanadditional$1,500iswelljustified.SnowGlide:PlantManagerSnowGlide’splantmanagerdoesnotcompletelyagreewiththeadvertisingdirector’sprojections.Hebelievesthattheincreaseddemandforthecompany’sproductwillinitiallyputpressureontheplant’sproductioncapabilities.Tocopewiththepressure,heassertsthatmanyfactoryworkerswillberequiredtoworkexcessiveovertimehours,causinganincreaseindirectlaborcostsofapproximately$1.80perunit.Assumingthatheiscorrect,hewantstoknowthesalesvolumeinunitsrequiredtoachievetheadvertisingdirector’sprojectedmonthlyincomefigureof$36,300.SnowGlide:PlantManager(cont.)Holdingthesellingpriceat$90perunit,the$1.80overtimepremiumwillreduceSnowGlide’scurrentcontributionmarginfrom$54perunitto$52.20perunitasfollows.Ifthedirectorofadvertisingreceivesamonthlyincreaseof$1,500inherbudget,andifa$36,300incometargetisestablished,thenumberofunitsthatmustbesoldiscomputedasfollows.YourTurn:PlantAccountantAssumeyouaretheplantaccountantandthatyouhaveabudgetedfixedoverheadof$20,800permonthforaproductionlevelatnormalcapacityof1,000unitspermonth.Thus,youroverheadapplicationratehasbeensetat$20,800/1,000units,or$20.80perunit.Yourealizethataproductionincreaseto1,500unitspermonthwillresultinoverapplyingfixedoverheadtothetuneof$10,400permonth(500units×$20.80).Youarehesitanttobringuptheproblemoftheoverheadapplicationratewiththeplantmanagerbecausebothofyoureceiveayearlybonusbasedonplantprofitability.Ifoverheadisbeingoverappliedbecauseproductionisat1,500units,theapplicationrateistoohigh($20.80versus$20,800/1,500=$13.87perunit).Iftheprojectedsalesvolumeof1,500unitsdoesnotoccur,significantfixedoverheadcostswillbeassignedtotheunsoldinventories.Asaresult,plantincomewillbelargerandyourbonus—aswellastheplantmanager’s—willbelarger.Whatshouldyoudo?SnowGlide:VicePresidentofSalesThevicepresidentofsalesisn’tconvincedthatanincreaseinthemonthlyadvertisingbudgetof$1,500willyieldsalesof500unitspermonthintheEastCoastregion.Herestimateismoreconservative,at350unitspermonth(fortotalmonthlysalesof1,250units).Assumethatthemonthlyadvertisingbudgetisincreasedby$1,500,andthatdirectlaborcostsactuallydoincreaseby$1.80perunitbecauseoftheovertimepremiumrequiredtomeetincreasedproductiondemands.Ifthevicepresidentofsalesiscorrectregardingher1,250-unitprojection,shewantstoknowtheextenttowhichthecompanywouldhavetoraiseitssellingprices(abovethecurrentpriceof$90perunit)toachieveatargetmonthlyincomefigureof$36,300.SnowGlide:VicePresidentofSales(cont.)If1,250unitsaresoldeachmonthinsteadof1,400units,thecontributionmarginperunitmustincreaseinorderforthecompanytoachievethesametargetincome.Givenarequiredunitcontributionmarginof$60.48andavariablecostperunitof$37.80,wecaneasilysolvefortherequiredunitsellingpriceasfollows.AdditionalConsiderationsinCVPInpractice,theapplicationofcost-volume-profitanalysisisoftencomplicatedbyvariousoperatingfactors,including:Differentproductswithdifferentcontributionmargins.Determiningsemivariablecostelements.Complyingwiththeassumptionsofcost-volume-profitanalysis.CVPAnalysisWhenaCompanySellsManyProductsMostcompaniessellamixofmanydifferentproducts.Salesmixdescribestherelativepercentagesoftotalsalesprovidedbydifferentproducts.Differentproductsusuallyhavedifferentcontributionmarginratios.Managersoftenuseanaveragecontributionmarginratiofordecision-makingpurposes.Theaveragecontributionmarginratiomaybecomputedbyweightingthecontributionmarginratiosofeachproductlinebythepercentageoftotalsaleswhichthatproductrepresents.SnowGlide:AverageContributionMarginRatioAssumethat,inadditiontosnowboards,SnowGlidesellsgoggles.Contributionmarginratiosforthetwoproductlinesaresnowboards,60percent,andgoggles,80percent.Snowboardsaccountfor90percentoftotalsales,andgoggles,theother10percent.TheHigh-LowMethodRecallthatsemivariablecostshavebothafixedportionandavariableportion.Inpractice,youmustestimatethefixedandvariableelementsofsemivariablecosts.Severalmathematicaltechniquesmaybeusedtoaccomplishthistask.Wewillfocusononeapproachcalledthehigh-lowmethod.TheHigh-LowMethod(cont.1)AssumethatsomeportionofSnowGlide’stotaladministrativecostisfixedandthatsomeportionvarieswiththelevelofproduction.Informationpertainingtoproductionandadministrativecostsforthefirstsixmonthsoftheyearisshownbelow.TheHigh-LowMethod(cont.2)Tofindthevariableportionoftotaladministrativecosts,werelatethechangeincosttothechangeintheactivitybasebetweenthehighestandthelowestmonthsofproductionactivity.Noticethata100-unitincreaseinproductionresultsina$240increaseinadministrativecosts.Therefore,thevariableelementofthiscostmaybeestimatedat$240per100units,or$2.40perunit.TheHigh-LowMethod(cont.3)Todeterminethefixedportionofthemonthlyadministrativecost,wetakethetotalmonthlycostateitherthehighpointorthelowpoint,anddeductthevariableadministrativecostfromthatamount.Thefollowingcomputationusesthehighestlevelofactivitytodeterminethefixedcostportion.TheHigh-LowMethod(cont.4)Wehavenowdevelopedacostformulaformonthlyadministrativecosts:$23,000+$2.40perunit.Inadditiontohelpingthecompanyevaluatethereasonablenessofadministrativecostsincurredinagivenmonth,thisformulaisalsovaluableinforecastingadministrativecostslikelytobeincurredinthefuture.Forexample,whatamountofadministrativecostshouldSnowGlideexpectinamonthinwhichithasscheduled930unitsofproduction?Theanswerisapproximately$25,232,determinedasfollows.AssumptionsUnderlyingCVPAnalysisThroughoutthechapterwehavereliedoncertainassumptionsthathavesimplifiedtheapplicationofcost-volume-profitanalysis.Theseassumptionsinclude:Salespriceperunitisassumedtoremainconstant.Ifmorethanoneproductissold,theproportionofthevariousproductssold(thesalesmix)isassumedtoremainconstant.Fixedcosts(expenses)areassumedtoremainconstantatalllevelsofsaleswithinarelevantrangeofactivity.Variablecosts(expenses)areassumedtoremainconstantasapercentageofsalesrevenue.Formanufacturingcompanies,thenumberofunitsproducedisassumedtoequalthenumberofunitssoldeachperiod.SummaryofBasicCVPRelationshipsLearningObjectiveSummaryLO20-1LO20-1:Explainhowfixed,variable,andsemivariablecostsrespondtochangesinthevolumeofbusinessactivity.Fixedcosts(fixedexpenses)remainunchangeddespitechangesinsalesvolume,whilevariablecosts(orexpenses)changeindirectproportiontochangesinsalesvolume.Withasemivariablecost,partofthecostisfixedandpartisvariable.Semivariablecostschangeinresponsetoachangeinthelevelofactivity,buttheychangebylessthanaproportionateamount.LearningObjectiveSummaryLO20-2LO20-2:Explainhoweconomiesofscalecanreduceunitcosts.Economiesofscalearereductionsinunitcostthatcanbeachievedthroughahighervolumeofactivity.Oneeconomyofscaleisfixedcoststhatarespreadoveralargernumberofunits,thusreducingunitcost.LearningObjectiveSummaryLO20-3LO20-3:Prepareacost-volume-profitgraph.

Theverticalaxisonacost-volume-profitgraphisdollarsofrevenueorcosts,andthehorizontalaxisisunitsales.Linesareplottedonthegraphshowingrevenueandtotalcostsatdifferentsalesvolumes.Theverticaldistance