管理会计英语03ppt课件.ppt

TraditionalCostManagementSystems Chapter3 CostManagementSystems CostmanagementsystemshaveawidevarietyofusesTwocostmanagementsystemshavebeenusedtraditionallytocostproductsandservicesJobordercostingProcesscostingManycompaniescontinuetousethesetwosystems CostManagementSystems Allcostsystemsworkinessentiallythesameway Expensecategoriesaredevelopedandthenexpensesaremappedtoservicedepartments productioncenters oractivitiesExpensesarethenattachedtocostobjectsThewaytheselinksaremadeandtheactivitiesdefinediswhatdifferentiatessystems Manufacturingcosts Thecostsofproducingaproductcanbebrokendownintotwobroadcategories Directcost costofaresourceoractivitythatisacquiredorusedbyasinglecostobjectIndirectcost costofaresourcethatwasacquiredtobeusedbymorethanonecostobject DirectandIndirectCosts DirectcostscanbeeasilytracedtoacostobjectIndirectcostscannoteasilybetracedtoacostobjectsotheymustbeallocatedorassignedtothecostobject JobOrderv ProcessCostingSystems AjobordercostingsystemestimatesthecostsofmanufacturingproductsfordifferentjobsrequiredforspecificcustomerordersAprocesscostingsystemisapplicablewhenallunitsproducedduringaspecifiedtimeframearetreatedasoneunitofoutput NeedforJobOrderCosting ProductsmaydifferMaterialscontentHoursoflaborrequiredMachinetimerequiredDemandplacedonsupportactivityresources i e manufacturingoverhead SpecialcustomerneedsthatrequirecustomizedproductionWithsuchvariety managersneedtounderstandthecostsofindividualproductssothattheycanassessproductandcustomerprofitability TheCostFlowModel ThecostflowmodelessentiallyusesaninventoryconcepttotrackcostsRawmaterialsinventoryWork in process WIP inventoryRawmaterialsaretransformedbylaborandsupportresourcesCostsoftheresourcesforeachjobnotyetcompletedFinishedgoodsinventoryWhenthegoodsaresold theyareaccountedforintheexpensecategoryCostofGoodsSold BiddingUsingJobOrderCosting FirmsaresometimesrequiredtobidonjobsbeforecustomersdecidetoplaceanorderwiththemCostsneedtobeestimatedforeachjobinordertoprepareabidJobordercostingsystemsprovidethemeanstoestimatethesecostsAjobbidsheetprovidesaformatforrecordingtheestimatedcosts JobBidSheet Panel1identifiesthecustomer theproduct andthenumberofunitsrequired BidNumber J4369Date July6 2006Customer MichiganMotorsProduct Automobileenginevalves Valve L181 EngineeringDesignNumber JDR 103NumberofUnits 1 500 JobBidSheet Panel2listsallthematerialsrequiredtocompletethejob MaterialsQuantityPriceAmountBarsteelstock3 3 600lbs 11 30 40 680Subassembly1 50039 0058 500Totaldirectmaterials 99 180 JobBidSheet Panel3liststheamountofdirectlaborrequiredforthejob LaborHoursRateAmountLatheoperators480 26 00 12 480Assemblyworkers90018 0016 200Totaldirectlabor1 380 28 680 JobBidSheet Panel4containsestimatesforcostdrivercosts SupportCostsAmount600machine hours 40 hour 24 0001 380directlaborhours 36 hour49 680Totalsupportcosts 73 680 JobBidSheet Panel5summarizesthetotalcostsestimatedforthejob Directmaterial 99 180Directlabor28 680Supportcosts73 680Totalcosts 201 540 JobBidSheet Amarkuprateisappliedtotranslatetheestimatedcostintoabidprice Totalcosts 201 540Add25 markup50 385Bidprice 251 925Unitcost 134 36Unitprice 167 95 JobCostsAndMarkup Markuprate percentbywhichjobcostsaremarkedupThemarkupratedependsonavarietyoffactors TheamountofsupportcostsexcludedfromthecostdriverrateThetargetrateofreturndesiredbythecorporationCompetitiveintensityPastbiddingstrategiesadoptedbykeycompetitorsDemandconditionsOverallproduct marketstrategies DeterminationOfCostDriverRates DeterminingrealisticcostdriverrateshasbecomeincreasinglyimportantwiththeincreaseinsupportcostsasapercentageoftotalcostFirmsnowrecognizethatseveraldifferentfactorsmaybedrivingsupportcostsratherthanoneoreventwofactors suchasdirectlaborormachinehours CostDriverRates Allcostsassociatedwithacostdriver suchassetuphours areaccumulatedseparatelyinacostpoolEachcostpoolhasaseparatecostdriverrateThecostdriverrateistheratioofthecostofasupportactivityaccumulatedinthecostpooltothelevelofthecostdriverfortheactivityActivitycostdriverrate Costofsupportactivity Levelofcostdriver StableCostDriverRates ThecostofthesupportactivityisthecostoftheresourcescommittedtotheparticularactivityTheleveloftheactivitycostdriveristhelong termcapacitymadeavailablebytheamountofresourcescommittedtoasupportactivityThecostofasupportactivityexcludesfluctuationsincostscausedbyshort termadjustmentssuchasovertimepaymentsThelevelofthesupportactivitycostdriveralsoexcludesshort termvariationsindemandasreflectedinovertimeoridletime StableCostDriverRates Theratioshownisbasedoncostsandcostdriverlevels therateremainsstableovertime RatedoesnotfluctuateasactivitylevelschangeintheshortrunRatedoesnotchangesimplybecauseofshort runchangesinexternalfactorsthatdonotaffecttheefficiencyorpriceoftheactivityresources FluctuatingRates Iftherateformachinecostsisbasedonquarterlycostdriverlevelsinsteadofthenormallevels TherateincreasesasthedemandforthemachineactivityfallsTheratedecreasesasthedemandincreasesIfthecostdriverrateisbasedoncostsandactivitylevelsremainsfixedthroughouttheyearCostsdependonthemachinecapacitymadeavailableandnotontheseason ProblemsWithFluctuatingRates Determinationofcostdriverratesbasedonshort termusageresultsinhigherratesduringperiodsoflowerdemandJobcostsappeartobehigherduringtimeperiodswhendemandislowerBidpricesbasedonestimatedjobcostsarelikelytobehigherduringperiodsoflowdemandwhentheyprobablyshouldbelowerThehigherbidpricecanfurtherdecreasedemand whichinturnleadstohighercostdriverratesandevenhigherprices NumberofCostPools ThenumberofcostpoolscanvaryThegeneralprincipleistouseseparatecostpoolsifthecostorproductivityofresourcesisdifferentandifthepatternofdemandvariesacrossresourcesTheincreaseinmeasurementcostsrequiredbyamoredetailedcostsystemmustbetradedoffagainstthebenefitofincreasedaccuracyinestimatingproductcosts RecordingActualJobCosts JobordercostaccountingsystemsrecordcostsactuallyincurredonindividualjobsastheyareproducedCopiesofallmaterialsrequisitionnotesandworkertimecardsareforwardedtotheaccountingdepartment whichthenpoststhemonajobcostsheetThesystemcalculatestotalcostsfortheportionofthejobcompleted Multi stageProcessCosting Continuousprocessing productionflowscontinuously semi continuously orinlargebatchesfromoneprocessstagetothenextAteachsuccessiveprocessstage thereisfurtherprogresstowardconvertingtherawmaterialsintothefinishedproductIncontinuousprocessingitisnecessaryfirsttodeterminecostsforeachstageoftheprocessandthentoassigntheircoststoindividualproducts MultistageProcessCostingSystems Thedesignofproductcostingsystemsinsuchprocess orientedplantsallowsmeasurementofthecostsofconvertingtherawmaterialsduringatimeperiodtobemadeseparatelyforeachprocessstageTheconversioncostsareappliedtoproductsastheypassthroughsuccessiveprocessstagesThissystemfordeterminingproductcosts knownasamultistageprocesscostingsystem iscommoninprocess orientedindustries Process OrientedIndustries Multistageprocesscostingsystemsarefoundinplantsengagedincontinuousprocessing suchasthoseinthechemicals basicmetals pharmaceuticals grainmillingandprocessing andelectricutilitiesindustriesAlsofoundinsomediscrete partsmanufacturingplantssuchasthoseproducingautomobilecomponents smallappliances andelectronicinstrumentsandcomputersCommonfeatureinthesesettingsisthattheproductsmanufacturedarerelativelyhomogeneous ComparisonWithJobOrderCosting Bothsystemshavethesameobjective Assignmaterial labor andmanufacturingsupportactivitycoststoproductProcesscostingsystemsdifferinthatthey DonotmaintainseparatecostrecordsforindividualjobsMeasurecostsonlyforprocessstagesDeterminecostvariancesonlyattheleveloftheprocessstagesinsteadofatthelevelofindividualjobs JobOrderandMultistageProcessCosting InjobordercostingproductioniscarriedoutindifferentjobsInmultistageprocesscosting productioniscarriedoutcontinuously semi continuously orinlargebatches JobOrderandMultistageProcessCosting Injobordercosting productionrequirementsaredifferentforeachindividualjobInmultistageprocesscosting productionrequirementsarehomogeneousacrossproductsorjobs JobOrderandMultistageProcessCosting Injobordercosting variancesbetweenactualandestimateddirectmaterialanddirectlaborcostsaredeterminedforeachindividualjobsInmultistageprocesscosting variancesbetweenactualandestimatedcostsaredeterminedforindividualprocessstages EquivalentUnitsofProduction Processcostingissue unitsinproductionthatarenotcompleteattheendofaproductionperiodThesepartiallycompletedunitsareconvertedmathematicallyintoequivalentunitsofproduction EUPs EUPs Equivalentunits NumberofpartiallycompletedunitsPercentagecompletionWeighted averagemethod EUP unitstransferredouttothenextdept EquivalentunitsinendingWIP ServiceDepartmentCostAllocations Appendix3 1 OperatingExpenseAllocations Traditionalcostaccountingsystemsassignoperatingexpensestoproductswithatwo stageprocedure ExpensesareassignedtoproductiondepartmentsProductiondepartmentexpensesareassignedtotheproductsDepartmentalstructureinfluencesthefirst stageallocationprocess EffectOfDepartmentalStructure DepartmentsthathavedirectresponsibilityforconvertingrawmaterialsintofinishedproductsarecalledproductiondepartmentsServicedepartmentsperformactivitiesthatsupportproduction suchas Machinesetup Productionengineering Productionscheduling Allservicedepartmentcostsareindirectsupportactivitycostsbecausetheydonotarisefromdirectproductionactivities Machinemaintenance Two StageCostAllocation ConventionalproductcostingsystemsassignindirectcoststojobsorproductsintwostagesInthefirststage SystemidentifiesindirectcostswithvariousproductionandservicedepartmentsServicedepartmentcostsarethenallocatedtoproductiondepartmentsThesystemassignstheaccumulatedindirectcostsfortheproductiondepartmentstoindividualjobsorproductsbasedonpredetermineddepartmentalcostdriverrates Two StageCostAllocation 2of2 AllocatingServiceDepartmentCostsToProductionDepartments Therearethreewaysthatcompaniesallocateservicedepartmentcoststoproductiondepartments DirectallocationSequentialallocationReciprocalallocationThelasttwoareusedwhenservicedepartmentsconsumeservicesprovidedbyotherdepartments PATIENTAIDEXAMPLE Step1ofStage1costallocations given DirectAllocationMethod ThedirectallocationmethodisasimplemethodthatallocatestheservicedepartmentcostsdirectlytotheproductiondepartmentsAllocationstoproductiondepartmentsarebasedoneachproductiondepartment srelativeuseoftheapplicablecostdriverPossibilitythatsomeoftheactivitiesofaservicedepartmentmaybenefitotherservicedepartmentsaswellasproductiondepartmentsisignored AllocationBasesValues AllocationRatios 300 000 1 200 000 0 250 Basedonrelativeallocationbasisvalue AllocationofServiceDepartmentCosts Multiplyservicedepartmentcostbytheallocationratios 160 000 x0 250 40 000 Stage2CostAllocations Stage2allocationsRequiretheidentificationofappropriatecostdriversforeachproductiondepartmentAssignproductiondepartmentcoststojobsandproductswhiletheyareworkedoninthedepartmentsConventionalcostaccountingsystemsuseunit relatedcostdriversDividingtheindirectcostsaccumulatedineachproductiondepartmentbythetotalnumberofunitsofthecorrespondingcostdriverresultsincostdriverratesforeachdepartment PATIENTAIDStage2 TheCastingDepartmentallocatesitsindirectcoststojobsbasedonmachinehours withtotalcapacityforCastingequaling6 000machinehoursTotalindirectcostsforCasting aftertheallocationfromservicedepartmentsinStep2ofStage1was 216 000Asaresult Castingallocatesindirectcoststojobsatarateof 36 00permachinehour 216 000 6 000hours PATIENTAIDStage2 IfJobJ189 4uses40machinehourswhileintheCastingDepartment Castingwillallocate 1 440ofitsindirectcoststoJobJ189 440hoursx 36 00perhourEachdepartmentwillallocateindirectcoststoJobJ189 4inasimilarmanner andCastingwillallocatesomecoststoalljobsinasimilarmannerTodeterminethetotalcostofJobJ198 4 addtheDirectMaterialandDirectLaborcostassignedineachdepartmentandtheindirectcostallocatedfromeachdepartmentTodeterminethecostperunit dividethetotalcostbythenumberofunitsinJobJ189 4 CostDistortionsinATwo StageAllocation Thetwo stageallocationcancausesomeproductstobeovercostedandothersundercostedifallocationsarebasedonunitmeasuresbuttheunitsofdifferentproductshavedifferentrelativeconsumptionratios CostDistortionsinATwo StageAllocation 2of2 Costdistortionsaregreaterwhenthedifferencebetweentherelativeproportionofthecostdriverfortheactivityandtherelativeproportionofthebasisforsecond stageassignmentofsupportcostsisgreaterSuchdistortionscouldbeeliminatedifthecostingsystemusedtheactualcostdriverforeachsupportactivitytoassigncostsdirectlytotheproducts SequentialandReciprocalAllocationMethods SequentialandreciprocalallocationmethodsareusedwhenservicedepartmentsconsumeservicesprovidedbyotherservicedepartmentsThesequentialallocationmethodallocatesservicedepartmentcoststooneservicedepartmentatatimeinsequentialorderThereciprocalallocationmethoddeterminesservicedepartmentcostallocationssimultaneously SequentialAllocationMethod Thesequentialmethodisappropriatewhenthereisnotapairofservicedepartmentsinwhicheachdepartmentinthatpairconsumesasignificantproportionoftheservicesproducedbytheotherdepartmentinthatpair SequentialAllocationMethod ThesequentialallocationmethodrequiresthattheservicedepartmentsfirstbearrangedinorderAservicedepartmentcanreceivecostsallocatedfromanotherservicedepartmentonlybeforeitsowncostshavebeenallocatedtootherdepartmentsOnceaservicedepartment scostshavebeenallocated nocostscanbeallocatedbacktoitfromotherdepartments SequentialAllocationMethod 480 000 800 000 0 6002 000 4 000 0 500 SequentialAllocationMethod 320 000 0 600 192 000 180 000 40 000 0 500 110 000 SequentialAllocationMethod Thepowerdepartmentdoesnotreceiveengineeringservices buttheengineeringdepartmentusespowerTherefore inthesequentialmethod PowerdepartmentcostsareallocatedfirstEngineeringdepartmentcostsareallocatednextThetotalcostofaservicedepartmentallocatedtootherdepartmentsequalstheamountdirectlyidentifiedwiththeservicedepartmentplustheamountallocatedearliertotheservicedepartmentfromotherservicedepartments ReciprocalAllocationMethod Ifbothservicedepartmentsinthisexampleconsumeeachother sservices thereciprocalallocationmethodisappropriateThesequentialmethodignoresorsuppressessuchreciprocalrelati