COST03Cost-Volume-ProfitRelationships(成本管理会计.ppt

Cost-Volume-ProfitRelationships,Chapter3,Introduction,Thischapterexaminesoneofthemostbasicplanningtoolsavailabletomanagers:cost-volume-profitanalysis.Cost-volume-profitanalysisexaminesthebehavioroftotalrevenues,totalcosts,andoperatingincomeaschangesoccurintheoutputlevel,sellingprice,variablecostsperunit,orfixedcosts.,LearningObjectives,Understandbasiccost-volume-profit(CVP)assumptionsExplainessentialfeaturesofCVPanalysisDeterminethebreakevenpointandtargetoperatingincomeusingtheequation,contributionmargin,andgraphmethods,LearningObjectives,IncorporateincometaxconsiderationsintoCVPanalysisExplaintheuseofCVPanalysisindecisionmakingandhowsensitivityanalysiscanhelpmanagerscopewithuncertaintyUseCVPanalysistoplancosts,LearningObjectives,ApplyCVPanalysistoamulti-productcompanyDistinguishbetweencontributionmarginandgrossmarginAdaptCVPanalysistomultiplecostdriversituations,LearningObjective1,Understandbasiccost-volume-profit(CVP)assumptions,Cost-Volume-ProfitAssumptionsandTerminology,Changesinthelevelofrevenuesandcostsariseonlybecauseofchangesinthenumberofproduct(orservice)unitsproducedandsold.Totalcostscanbedividedintoafixedcomponentandacomponentthatisvariablewithrespecttothelevelofoutput.,Cost-Volume-ProfitAssumptionsandTerminology,Whengraphed,thebehavioroftotalrevenuesandtotalcostsislinear(straight-line)inrelationtooutputunitswithintherelevantrange(andtimeperiod).Theunitsellingprice,unitvariablecosts,andfixedcostsareknownandconstant.,Cost-Volume-ProfitAssumptionsandTerminology,Theanalysiseithercoversasingleproductorassumesthatthesalesmixwhenmultipleproductsaresoldwillremainconstantastheleveloftotalunitssoldchanges.Allrevenuesandcostscanbeaddedandcomparedwithouttakingintoaccountthetimevalueofmoney.,Cost-Volume-ProfitAssumptionsandTerminology,Operatingincome=TotalrevenuesfromoperationsCostofgoodssoldandoperatingcosts(excludingincometaxes)NetIncome=Operatingincome+Nonoperatingrevenues(suchasinterestrevenue)Nonoperatingcosts(suchasinterestcost)Incometaxes,LearningObjective2,ExplainessentialfeaturesofCVPanalysis,EssentialsofCost-Volume-Profit(CVP)Analysis,AssumethatDressesbyMarycanpurchasedressesfor$32fromalocalfactory;othervariablecostsamountto$10perdress.Becausesheplanstosellthesedressesoverseas,thelocalfactoryallowsMarytoreturnallunsolddressesandreceiveafull$32refundperdresswithinoneyear.,EssentialsofCost-Volume-Profit(CVP)Analysis,MarycanuseCVPanalysistoexaminechangesinoperatingincomeasaresultofsellingdifferentquantitiesofdresses.Assumethattheaveragesellingpriceperdressis$70andtotalfixedcostsamountto$84,000.Howmuchrevenuewillshereceiveifshesells2,500dresses?,EssentialsofCost-Volume-Profit(CVP)Analysis,2,500$70=$175,000Howmuchvariablecostswillsheincur?2,500$42=$105,000Wouldsheshowanoperatingincomeoranoperatingloss?Anoperatingloss$175,000105,00084,000=($14,000),EssentialsofCost-Volume-Profit(CVP)Analysis,Theonlynumbersthatchangearetotalrevenuesandtotalvariablecost.Totalrevenuestotalvariablecosts=ContributionmarginContributionmarginperunit=sellingpricevariablecostperunitWhatisMaryscontributionmarginperunit?,EssentialsofCost-Volume-Profit(CVP)Analysis,$70$42=$28contributionmarginperunitWhatisthetotalcontributionmarginwhen2,500dressesaresold?2,500$28=$70,000,EssentialsofCost-Volume-Profit(CVP)Analysis,Contributionmarginpercentage(contributionmarginratio)isthecontributionmarginperunitdividedbythesellingprice.WhatisMaryscontributionmarginpercentage?$28$70=40%,EssentialsofCost-Volume-Profit(CVP)Analysis,IfMarysells3,000dresses,revenueswillbe$210,000andcontributionmarginwouldequal40%$210,000=$84,000.,LearningObjective3,Determinethebreakevenpointandtargetoperatingincomeusingtheequation,contributionmargin,andgraphmethods,BreakevenPoint.,isthesaleslevelatwhichoperatingincomeiszero.Atthebreakevenpoint,salesminusvariableexpensesequalsfixedexpenses.Totalrevenues=Totalcosts,Abbreviations,USP=UnitsellingpriceUVC=UnitvariablecostsUCM=UnitcontributionmarginCM%=ContributionmarginpercentageFC=Fixedcosts,Abbreviations,Q=Quantityofoutput(unitssoldormanufactured)OI=OperatingincomeTOI=TargetoperatingincomeTNI=Targetnetincome,MethodsforDeterminingBreakevenPoint,Breakevencanbecomputedbyusingeithertheequationmethod,thecontributionmarginmethod,orthegraphmethod.,EquationMethod,Withtheequationapproach,breakevensalesinunitsiscalculatedasfollows:(UnitsalespriceUnitssold)(Variableunitcostxunitssold)Fixedexpenses=Operatingincome,EquationMethod,Usingtheequationapproach,computethebreakevenforDressesbyMary.$70Q$42Q$84,000=0$28Q=$84,000Q=$84,000$28Q=3,000units,ContributionMarginMethod,Withthecontributionmarginmethod,breakeveniscalculatedbyusingthefollowingrelationship:(USPUVC)Q=FC+OIUCMQ=FC+OIQ=FC+OIUCM$84,000$28=3,000units,ContributionMarginMethod,Usingthecontributionmarginpercentage,whatisthebreakevenpointforDressesbyMary?$84,00040%=$210,000,GraphMethod,Inthismethod,weplotalinefortotalrevenuesandtotalcosts.Thebreakevenpointisthepointatwhichthetotalrevenuelineintersectsthetotalcostline.Theareabetweenthetwolinestotherightofthebreakevenpointistheoperatingincomearea.,GraphMethodDressesbyMary,$(000)245Revenue231Totalexpenses3,0003,500Units,Break-even,210,84,TargetOperatingIncome.,canbedeterminedbyusinganyofthreemethods:TheequationmethodThecontributionmarginmethodThegraphmethod,TargetOperatingIncome,Insertthetargetoperatingincomeintheformulaandsolvefortargetsaleseitherindollarsorunits.(Fixedcosts+Targetoperatingincome)dividedeitherbyContributionmarginpercentageorContributionmarginperunit,TargetOperatingIncome,AssumethatMarywantstohaveanoperatingincomeof$14,000.Howmanydressesmustshesell?($84,000+$14,000)$28=3,500Whatdollarsalesareneededtoachievethisincome?($84,000+$14,000)40%=$245,000,LearningObjective4,IncorporateincometaxconsiderationsintoCVPanalysis,TargetNetIncomeandIncomeTaxes,Whenmanagerswanttoknowtheeffectoftheirdecisionsonincomeaftertaxes,CVPcalculationsmustbestatedintermsoftargetnetincomeinsteadoftargetoperatingincome.,TargetNetIncomeandIncomeTaxes,ManagementofDressesbyMarywouldliketoearnanaftertaxincomeof$35,711.Thetaxrateis30%.Whatisthetargetoperatingincome?Targetoperatingincome=Targetnetincome(1taxrate)TOI=$35,711(10.30)TOI=$51,016,TargetNetIncomeandIncomeTaxes,Howmanyunitsmustshesell?RevenuesVariablecostsFixedcosts=Targetnetincome(1taxrate)$70Q$42Q$84,000=$35,7110.70$28Q=$51,016+$84,000Q=$135,016$28Q=4,822dresses,TargetNetIncomeandIncomeTaxes,Proof:Revenues:4,822$70$337,540Variablecosts:4,822$42202,524Contributionmargin135,016Fixedcosts84,000Operatingincome51,016Incometaxes:$51,01630%15,305Netincome$35,711,LearningObjective5,ExplaintheuseofCVPanalysisindecisionmakingandhowsensitivityanalysiscanhelpmanagerscopewithuncertainty,UsingCVPAnalysis,SupposethemanagementofDressesbyMaryanticipatesselling3,200dresses.Managementisconsideringanadvertisingcampaignthatwouldcost$10,000.Itisanticipatedthattheadvertisingwillincreasesalesto4,000dresses.ShouldMaryadvertise?,UsingCVPAnalysis,3,200dressessoldwithnoadvertising:Contributionmargin$89,600Fixedcosts84,000Operatingincome$5,6004,000dressessoldwithadvertising:Contributionmargin$112,000Fixedcosts94,000Operatingincome$18,000,UsingCVPAnalysis,Maryshouldadvertise.Operatingincomeincreasesby$12,400.The$10,000increaseinfixedcostsisoffsetbythe$22,400increaseinthecontributionmargin.,UsingCVPAnalysis,Insteadofadvertising,managementisconsideringreducingthesellingpriceto$61perdress.Itisanticipatedthatthiswillincreasesalesto4,500dresses.ShouldMarydecreasethesellingpriceperdressto$61?,UsingCVPAnalysis,3,200dressessoldwithnochangeinthesellingprice:Operatingincome$5,6004,500dressessoldatareducedsellingprice:Contributionmargin:(4,500$19)$85,500Fixedcosts84,000Operatingincome$1,500,UsingCVPAnalysis,Thesellingpriceshouldnotbereducedto$61.Operatingincomedecreasesfrom$5,600to$1,500.,SensitivityAnalysisandUncertainty,Sensitivityanalysisisa“whatif“techniquethatexamineshowaresultwillchangeiftheoriginalpredicteddataarenotachievedorifanunderlyingassumptionchanges.,SensitivityAnalysisandUncertainty,AssumethatDressesbyMarycansell4,000dresses.Fixedcostsare$84,000.Contributionmarginratiois40%.AtthepresenttimeDressesbyMarycannothandlemorethan3,500dresses.,SensitivityAnalysisandUncertainty,Tosatisfyademandfor4,000dresses,managementmustacquireadditionalspacefor$6,000.Shouldtheadditionalspacebeacquired?,SensitivityAnalysisandUncertainty,Revenuesatbreakevenwithexistingspaceare$84,000.40=$210,000.Revenuesatbreakevenwithadditionalspaceare$90,000.40=$225,000.,SensitivityAnalysisandUncertainty,Operatingincomeat$245,000revenueswithexistingspace=($245,000.40)$84,000=$14,000.(3,500dresses$28)$84,000=$14,000,SensitivityAnalysisandUncertainty,Operatingincomeat$280,000revenueswithadditionalspace=($280,000.40)$90,000=$22,000.(4,000dresses$28contributionmargin)$90,000=$22,000,LearningObjective6,UseCVPanalysistoplancosts,AlternativeFixed/VariableCostStructures,SupposethatthefactoryDressesbyMaryisusingtoobtainthemerchandiseoffersMarythefollowing:DecreasethepricetheychargeMaryfrom$32to$25andchargeanannualadministrativefeeof$30,000.Whatisthenewcontributionmargin?,AlternativeFixed/VariableCostStructures,$70($25+$10)=$35Contributionmarginincreasesfrom$28to$35.Whatisthecontributionmarginpercentage?$35$70=50%Whatarethenewfixedcosts?$84,000+$30,000=$114,000,AlternativeFixed/VariableCostStructures,Managementquestionswhatsalesvolumewouldyieldanidenticaloperatingincomeregardlessofthearrangement.28X84,000=35X114,000114,00084,000=35X28X7X=30,000X=4,286dresses,AlternativeFixed/VariableCostStructures,Costwithexistingarrangement=Costwithnewarrangement.60X+84,000=.50X+114,000.10X=$30,000X=$300,000($300,000.40)$84,000=$36,000($300,000.50)$114,000=$36,000,OperatingLeverage.,measurestherelationshipbetweenacompanysvariableandfixedexpenses.Itisgreatestinorganizationsthathavehighfixedexpensesandlowperunitvariableexpenses.,OperatingLeverage,Thedegreeofoperatingleverageshowshowapercentagechangeinsalesvolumeaffectsincome.Degreeofoperatingleverage=ContributionmarginOperatingincomeWhatisthedegreeofoperatingleverageofDressesbyMaryatthe3,500saleslevelunderbotharrangements?,OperatingLeverage,Existingarrangement:3,500$28=$98,000contributionmargin$98,000contributionmargin$84,000fixedcosts=$14,000operatingincome$98,000$14,000=7.0,OperatingLeverage,Newarrangement:3,500$35=$122,500contributionmargin$122,500contributionmargin$114,000fixedcosts=$8,500$122,500$8,500=14.4,LearningObjective7,ApplyCVPanalysistoamulti-productcompany,EffectsofSalesMixonIncome,Salesmixisthecombinationofproductsthatabusinesssells.,EffectsofSalesMixonIncome,AssumethatDressesbyMaryisconsideringsellingblouses.Thiswillnotrequireanyadditionalfixedcosts.Itexpectstosell2blousesat$20eachforeverydressitsells.Thevariablecostperblouseis$9.Whatisthenewbreakevenpoint?,EffectsofSalesMixonIncome,Thecontributionmarginperdressis$28($70sellingprice$42variablecost).Thecontributionmarginperblouseis$20$9=$11.Thecontributionmarginofthemixis$28+(2$11)=$28+$22=$50.,EffectsofSalesMixonIncome,$84,000fixedcosts$50=1,680packages1,6802=3,360blouses1,6801=1,680dressesTotalunits=5,040Whatisthebreakevenindollars?,EffectsofSalesMixonIncome,1,6802=3,360blouses$20=$67,2001,6801=1,680dresses$70=117,600$184,800Whatistheweightedaveragebudgetedcontributionmargin?,EffectsofSalesMixonIncome,DressesBlouses1$28+2$11=$503=$16.667Breakevenpointforthetwoproductsis:$84,000$16.667=5,040units5,0401/3=1,680dresses5,0402/3=3,360blouses,EffectsofSalesMixonIncome,Salesmixcanbestatedinsalesdollars:DressesBlousesSalesprice$70$40Variablecosts4218Contributionmargin$28$22Contributionmarginratio40%55%,EffectsofSalesMixonIncome,Assumethesalesmixindollarsis63.6%dressesand36.4%blouses.Weightedcontributionwouldbe:40%63.6%=25.44%dresses55%36.4%=20.02%blouses45.46%,EffectsofSalesMixonIncome,Breakevensalesdollarsis$84,00045.46%=$184,778(rounding).$184,77863.6%=$117,519dresssales$184,77836.4%=$67,259blousesales,EffectsofSalesMixonIncome,Whathappenedwhenalossoccurredwhilethesalesdollarshadreached$184,778?Dresseshadbeensoldmorethanexpectedwhileblouseshadbeensoldless.,CVPAnalysisinServiceandNonprofitOrganizations,CVPcanalsobeappliedtodecisionsbymanufacturing,service,andnonprofitorganizations.ThekeytoapplyingCVPanalysisinserviceandnonprofitorganizationsismeasuringtheiroutput.,LearningObjective8,Di