成本与管理会计亨格瑞第13版英文版CA07.ppt

2019/12/1,1,1,CHAPTER7FlexibleBudgets,Direct-CostVariances,andManagementControl,2019/12/1,2,2,ControllingCosts,MeasureActual,COMPAREActualVsStandard,PredeterminedorSetStandard,Variance,2019/12/1,3,3,BasicConcepts,Variancedifferencebetweenanactualandanexpected(budgeted)amountPurposeofvarianceManagementbyexceptionPerformanceevaluationMotivatemanagersPromptstrategychange,2019/12/1,4,4,BasicConcepts,ManagementbyExceptionthepracticeoffocusingattentiononareasnotoperatingasexpected(budgeted),2019/12/1,5,5,ManagementbyException,DirectMaterial,Managersfocusonquantitiesandcoststhatexceedstandards,apracticeknownasmanagementbyexception.,TypeofProductCost,Amount,DirectLabor,Standard,2019/12/1,6,6,StaticandFlexibleBudgets,StaticbudgetPreparedforonlyonelevelofactivity.Itisbasedonthelevelofoutputplannedatthestartofthebudgetperiod.Themasterbudgetisanexampleofastaticbudget.FlexiblebudgetDevelopedusingbudgetedrevenuesorcostamountsbasedonthelevelofoutputactuallyachievedinthebudgetperiod.Keydifferenceistheuseoftheactualoutputlevelintheflexiblebudget.,2019/12/1,7,7,2019/12/1,8,8,2019/12/1,9,9,StaticBudget,AssumethatWebbmanufacturesandsellsjackets.Budgetedvariablecostsperjacketareasfollows:Directmaterialscost$60Directmanufacturinglabour16Variablemanufacturingoverhead12Totalvariablecosts$88,2019/12/1,10,10,StaticBudget,Budgetedsellingpriceis$120perjacket.Fixedmanufacturingcostsareexpectedtobe$276,000withinarelevantrangebetween0and12,000suits.Variableandfixedperiodcostsareignoredinthisexample.ThestaticbudgetforApril2008isbasedonselling12,000suits.Whatisthestatic-budgetoperatingprofit?,2019/12/1,11,11,StaticBudget,Revenues(12,000$120)$1,440,000LessExpenses:Variable(12,000$88)1,056,000Fixed276,000Budgetedoperatingprofit$108,000AssumethatWebbproducedandsold10,000suitsat$125eachwithactualvariablecostsof$95.01persuitandfixedmanufacturingcostsof$285,000.,2019/12/1,12,12,StaticBudget,Whatwastheactualoperatingprofit?Revenues(10,000$125)$1,250,000LessExpenses:Variable(10,000$95.01)950,100Fixed285,000Actualoperatingprofit$14,900Whatisthestatic-budgetvarianceofoperatingprofit?,2019/12/1,13,13,2019/12/1,14,14,Static-BudgetVariance,Astatic-budgetvarianceis:(Actualresult-Budgetedamountinthestaticbudget).Afavourable(F)varianceisavariancethatincreasesoperatingprofitrelativetothebudgetedamount.Anunfavourable(U)varianceisavariancethatdecreasesoperatingprofitrelativetothebudgetedamount.,2019/12/1,15,15,Static-BudgetVariance,Level0analysiscomparesactualoperatingprofitwithbudgetedoperatingprofit.Thisisthehighestlevelofanalysis,asuper-macroviewofoperatingresults.TheLevel0analysisisnothingmorethanthedifferencebetweenactualandstatic-budgetoperatingincomeAnswers:“Howmuchwereweoff?”Actualoperatingprofit$14,900Budgetedoperatingprofit108,000Static-budgetvarianceofoperatingprofit$93,100U,2019/12/1,16,16,Static-BudgetVariance,Level1analysisprovidesmoredetailedinformationontheoperatingprofitstatic-budgetvariance.Level1givestheuseralittlemoreinformation:itshowswhichline-itemsledtothetotalLevel0variance.Level1answersthequestion:“Wherewereweoff?”,2019/12/1,17,17,2019/12/1,18,18,Hmm!Comparingstaticbudgetswithactualcostsislikecomparingapplesandoranges.,2019/12/1,19,19,Reasonsforvariance,InaccurateforecastingofoutputunitssoldOrWebbsperformanceinmanufacturingandselling10000jackets,2019/12/1,20,20,FlexibleBudgets,Developedusingbudgetedrevenuesorcostamountsbasedontheactualoutputinthebudgetperiod.Preparedattheendoftheperiod,onceactualcostsareknown3stepprocess,2019/12/1,21,21,2019/12/1,22,22,StepsinDevelopingFlexibleBudgets,Determinebudgetedsellingprice,budgetedvariablecostperunitandbudgetedfixedcost.Thebudgetedsellingpriceis$120,thebudgetedvariablecostis$88persuit,andthebudgetedfixedcostis$276,000.,2019/12/1,23,23,StepsinDevelopingFlexibleBudgets,Step1:Determinetheactualoutput.InApril2008,10,000suitswereproducedandsold.Step2:Determinetheflexiblebudgetforrevenuesbasedonbudgetedsellingpriceandactualoutput.$12010,000=$1,200,000,2019/12/1,24,24,StepsinDevelopingFlexibleBudgets,Step3:Determinetheflexiblebudgetforcostsbasedonbudgetedvariablecostsperoutputunit,actualoutputandthebudgetedfixedcosts.Flexiblebudget:Variablecosts(10,000$88)$880,000Fixedcosts276,000Totalcosts$1,156,000,2019/12/1,25,25,Variances,Level2analysisprovidesinformationonthetwocomponentsofthestatic-budgetvariance.Flexible-budgetvarianceSales-volumevariance,2019/12/1,26,26,Level2Analysis,Illustrated,2019/12/1,27,27,Level2Analysis,Illustrated,2019/12/1,28,28,Sales-VolumeVariance,Thesales-volumevarianceisthedifferencebetweenthestaticbudgetforthenumberofunitsexpectedtobesoldandtheflexiblebudgetforthenumberofunitsthatwereactuallysold.Theonlydifferencebetweenthestaticbudgetandtheflexiblebudgetistheoutputleveluponwhichthebudgetisbased.,2019/12/1,29,29,Sales-VolumeVariance,Sales-VolumeVariance(Level2)in(000)FlexibleStaticSales-VolumeBudgetBudgetVarianceunits10122URevenue$1,200$1,440$240UVariablecosts8801,056176FContr.margin$320$384$64UFixedcosts2762760Operatingprofit$44$108$64U,2019/12/1,30,30,Sales-VolumeVariance,Actualquantitysold:10,000suits,Flexible-budgetoperatingprofit$44,000,Static-budgetoperatingprofit$108,000,Sales-volumevariance$64,000U,2019/12/1,31,31,Sales-VolumeVariance,Whyisthesales-budgetvariance$64,000unfavourable?Staticbudgetunits12,000Actualunitssold10,000Variance2,000UBudgetedcontributionmarginperunit:($120$88)=$322,000$32=$64,000unfavourablevariance,2019/12/1,32,32,Level2Analysis,Illustrated,2019/12/1,33,33,Flexible-BudgetVariance,Flexible-BudgetVariance(Level2)in(000)FlexibleActualBudgetResultsVarianceUnits10100URevenue$1,200$1,250$50FVariablecosts880950.170.1UContributionmargin$320$299.9$20.1UFixedcosts2762859UOperatingprofit$44$14.9$29.1U,2019/12/1,34,34,Flexible-BudgetVariance,Actualquantitysold:10,000suits,Actualresultsoperatingprofit$14,900,Flexible-budgetoperatingprofit$44,000,Flexible-budgetvariance$29,100U,2019/12/1,35,35,Flexible-BudgetVariance,Theflexible-budgetvariancearisesbecausetheactualsellingprice,variablecostsperunit,quantitiesandfixedcostsdifferfromthebudgetedamount.ActualBudgetedAmountAmountSellingPrice$125$120Variablecost$95.01$88,2019/12/1,36,36,Flexible-BudgetVariance,Theflexible-budgetvariancepertainingtorevenuesisoftencalledaselling-pricevariancebecauseitarisessolelyfromdifferencesbetweentheactualsellingpriceandthebudgetedsellingprice:Selling-pricevariance=($125$120)10,000=$50,000FActualsellingpriceexceedsthebudgetedamountby$5.,2019/12/1,37,37,Flexible-BudgetVariance,Whyistheflexible-budgetvariance$29,100unfavourable?Selling-pricevariance$50,000FActualvariablecostsexceededflexiblebudgetvariablecost70,100UActualfixedcostsexceededflexiblebudgetfixedcosts9,000UTotalflexible-budgetvariance$29,100U,2019/12/1,38,38,BudgetVariances,Static-budgetvariance$93,100U,Flexible-budgetvariance$29,100U,Level1,Level2,Sales-volumevariance$64,000U,2019/12/1,39,39,Level3Variances,AllProductCostscanhaveLevel3Variances.DirectMaterialsandDirectLaborwillbehandlednext.OverheadVariancesarediscussedindetailinalaterchapterBothDirectMaterialsandDirectLaborhavebothPriceandEfficiencyVariances,andtheirformulaearethesame,2019/12/1,40,40,VarianceSummary,2019/12/1,41,41,CostVarianceAnalysis,2019/12/1,42,42,AGeneralModelforVarianceAnalysis,ActualQuantityActualQuantityBudgetedQuantityActualPriceBudgetedPriceBudgetedPrice,PriceVariance,QuantityVariance,2019/12/1,43,43,Level3Variances,PriceVarianceformula:EfficiencyVarianceformula:,2019/12/1,44,44,Level3Analysis,Illustrated,2019/12/1,45,45,PriceandEfficiencyVariances,Level3analysisseparatestheflexible-budgetvarianceintopriceandefficiencyvariances.Thefollowing:Directmaterialspurchasedandused:22,200squaremetresActualpricepaidpermetres:$28,2019/12/1,46,46,PriceandEfficiencyVariances,Actualdirectmanufacturinglabour-hours:9,000Actualpricepaidperhour:$22Whatistheactualcostofdirectmaterials?22,200$28=$621,600Whatistheactualcostofdirectmanufacturinglabour?9,000$22=$198,000,2019/12/1,47,47,PriceVariances,Apricevarianceisthedifferencebetweentheactualpriceandthebudgetedpriceofinputsmultipliedbytheactualquantityofinputs.Input-pricevarianceRatevariancePricevariance=(ActualpriceofinputsBudgetedpriceofinputs)Actualquantityofinputs.,2019/12/1,48,48,PriceVariances,Whatisthepricevariancefordirectmaterials?($28$30)22,200=$44,400FWhatisthepricevariancefordirectmanufacturinglabour?($22$20)9,000=$18,000U,2019/12/1,49,49,PriceVariances,ActualQuantityActualQuantityofInputsatofInputsatActualPriceBudgetedPrice22,200$2822,200$30=$621,600=$666,000$44,400FMaterialspricevariance,2019/12/1,50,50,PriceVariances,ActualQuantityActualQuantityofInputsatofInputsatActualPriceBudgetedPrice9,000$229,000$20=$198,000=$180,000$18,000ULabourpricevariance,2019/12/1,51,51,PriceVariances,WhatmaybesomeofthepossiblecausesforWEBBsfavourabledirectmaterialpricevariances?webbspurchasingmanagernegotiatedmoreskillfullythanwasplanned.Thepurchasingmanagerchangedtoalower-pricesupplier.Thepurchasingmanagerorderedlargequantitiesthanthequantitiesbudgeted,therebyobtainingquantitydiscounts.Directmaterialpricesdecreasedunexpectedlybecauseof,say,industryoversupply.Budgetedmaterialpricesweresettoohighwithoutcarefulanalysisofthemarket.Low-qualitymaterialsothatthepriceislower.WhatmaybesomeofthepossiblecausesforWEBBsunfavourabledirectlaborpricevariances?Labourpricesweresetwithoutcarefulanalysisofthemarket.,2019/12/1,52,52,EfficiencyVariances,Theefficiencyvarianceisthedifferencebetweentheactualandbudgetedquantityofinputsusedmultipliedbythebudgetedpriceofinput.Efficiencyvariance=(ActualquantityofinputsusedBudgetedquantityofinputsallowedforactualoutput)Budgetedpriceofinputs.,2019/12/1,53,53,EfficiencyVariances,Whatistheefficiencyvariancefordirectmaterials?(22,20020,000)$30=$66,000UWhatistheefficiencyvariancefordirectmanufacturinglabour?(9,0008,000)$20.00=$20,000U,2019/12/1,54,EfficiencyVariances,ActualQuantityBudgetedQuantityofInputsatAllowedforActualBudgetedPriceOutputsatBudgetedPrice22,200$3010,0002$30=$660,000=$600,000$66,000UMaterialsefficiencyvariance,2019/12/1,55,EfficiencyVariances,ActualQuantityBudgetedQuantityofInputsatAllowedforActualBudgetedPriceOutputsatBudgetedPrice9,000$20.0010,0000.8$20.00=$180,000=$160,000$20,000ULabourefficiencyvariance,2019/12/1,56,56,EfficiencyVariances,WhatmaybesomeofthecausesforWebbsunfavourableefficiencyvariances?Webbspurchasingmanagerreceivedlowerqualityofmaterials.Webbsproductionschedulerinefficientlyscheduledwork.Thepersonnelmanagerhiredunder-skilledworkers.Themaintenancedepartmentdidnotproperlymaintainmachines.Budgetedtimestandardsweresettootightwithoutcarefulanalysisoftheoperatingconditionsandtheemployeesskills.,2019/12/1,57,57,PriceandEfficiencyVariances,Whatistheflexible-budgetvariancefordirectmaterials?Materials-pricevariance$44,400F+Materials-efficiencyvariance$66,000U=$21,600UWhatistheflexible-budgetvariancefordirectmanufacturinglabour?Labour-pricevariance$18,000U+Labour-efficiencyvariance$20,000U=$38,000U,2019/12/1,58,58,VarianceSummary,2019/12/1,59,59,2019/12/1,60,60,Webbsold2000fewerthanbudgeted,Webbsoldunitsatahigherpricethanbudgeted.,PoorqualityofclothPoormaintenanceofmachinesUnderskilledworkers,2019/12/1,61,61,StandardCosting,TracedirectcoststooutputproducedbymultiplyingthestandardpricesorratesbythestandardquantitiesofinputsallowedforactualoutputsproducedAllocatesoverheadcostsonthebasisofthestandardoverhead-costratestimesthestandardquantitiesoftheallocationbasesallowedforactualoutputsproduced,2019/12/1,62,62,StandardCosting,2019/12/1,63,63,StandardCosting,BudgetedamountsandratesareactuallybookedintotheaccountingsystemThesebudgetedamountscontrastwithactualactivityandgiverisetoVarianceAccounts.,2019/12/1,64,64,1aDirectmaterialcontrol(22200$30)666000Directmaterialpricevariance(22200$2)44400Accountspayablecontrol(22200$28)6216001bWorkinprocesscontrol(100002$30)600000Directmaterialefficiencyvariance(22200$30)66000Directmaterialcontrol(22200$30)666000,2019/12/1,65,65,2Workinprocesscontrol(100000.8$20)160000Directmanufacturinglaborpricevariance(9000$2)18000Directmanufacturinglaborefficiencyvariance(1000$20)20000Wagespayablecontrol(9000$22)198000,2019/12/1,66,66,Costofgoodssold59600Directmaterialpricevariance(22200$2)44400Directmaterialefficiencyvariance(22200$30)66000Directmanufacturinglaborpricevariance(9000$2)18000Directmanufacturinglaborefficiencyvariance(1000$20)20000,2019/12/1,67,67,MultipleCausesofVariances,Oftenthecausesofvariancesareinterrelated.Afavourablepricevariancemightbeduetolowerqualitymaterials.Itisb