管理会计chapter

CostsTerms,ConceptsandClassifications,ChapterTwo,Whycosts?AnimportantpartofinformationsystemAstrategyAnexample-Airlinecompany,Differentcostsfordifferentpurposes-costsusedinfinancialandmanagerialaccountingWholeorsegment?Costcomposition,LearningObjective1,Identifyandgiveexamplesofeachofthethreebasicmanufacturingcostcategories.,TheProduct,ManufacturingCosts,DirectMaterials,Rawmaterialsthatbecomeanintegralpartoftheproductandthatcanbeconvenientlyanddirectlytracedtoit.,Example:Aradioinstalledinanautomobile,DirectLabor,Thoselaborcoststhatcanbeeasilytracedtoindividualunitsofproduct.,Example:Wagespaidtoautomobileassemblyworkers,Manufacturingcoststhatcannotbetracedconvenientlyanddirectlytospecificunitsproduced.,ManufacturingOverhead,Indirectmaterials,indirectlabor,andothermanufacturingoverhead,Non-manufacturingCosts,CostClassifications,LearningObjective2,Distinguishbetweenproductcostsandperiodcostsandgiveexamplesofeach.,MatchingPrinciple-basedonAccrualaccounting,Costsincurredtogenerateaparticularrevenueshouldberecognizedasexpensesinthesameperiodthattherevenueisrecognized.,Economiceventsarerecognizedbymatchingrevenuestoexpenses(thematchingprinciple)atthetimeinwhichthetransactionoccursratherthanwhenpaymentismade(orreceived).,ProductCostsVersusPeriodCosts,Productcostsincludedirectmaterials,directlabor,andmanufacturingoverhead.,Periodcostsincludeallsellingcostsandadministrativecosts.,QuickCheck,Whichofthefollowingcostswouldbeconsideredaperiodratherthanaproductcostinamanufacturingcompany?A.Manufacturingequipmentdepreciation.B.Propertytaxesoncorporateheadquarters.C.Directmaterialscosts.D.Electricalcoststolighttheproductionfacility.E.Salescommissions.,QuickCheck,Whichofthefollowingcostswouldbeconsideredaperiodratherthanaproductcostinamanufacturingcompany?A.Manufacturingequipmentdepreciation.B.Propertytaxesoncorporateheadquarters.C.Directmaterialscosts.D.Electricalcoststolighttheproductionfacility.E.Salescommissions.,ClassificationsofCosts,DirectMaterial,DirectLabor,ManufacturingOverhead,Manufacturingcostsareoftenclassifiedasfollows:,ComparingMerchandisingandManufacturingActivities,Merchandisers.Buyfinishedgoods.Sellfinishedgoods.,Manufacturers.Buyrawmaterials.Produceandsellfinishedgoods.,BalanceSheet,MerchandiserCurrentassetsCashReceivablesPrepaidExpensesMerchandiseInventory,ManufacturerCurrentAssetsCashReceivablesPrepaidExpensesInventoriesRawMaterialsWorkinProcessFinishedGoods,MerchandiserCurrentassetsCashReceivablesPrepaidExpensesMerchandiseInventory,ManufacturerCurrentAssetsCashReceivablesPrepaidExpensesInventoriesRawMaterialsWorkinProcessFinishedGoods,BalanceSheet,LearningObjective3,Prepareanincomestatementincludingcalculationofthecostofgoodssold.,TheIncomeStatement,Costofgoodssoldformanufacturersdiffersonlyslightlyfromcostofgoodssoldformerchandisers.,BasicEquationforInventoryAccounts,QuickCheck,Ifyourinventorybalanceatthebeginningofthemonthwas$1,000,youbought$100duringthemonth,andsold$300duringthemonth,whatwouldbethebalanceattheendofthemonth?A.$1,000.B.$800.C.$1,200.D.$200.,QuickCheck,Ifyourinventorybalanceatthebeginningofthemonthwas$1,000,youbought$100duringthemonth,andsold$300duringthemonth,whatwouldbethebalanceattheendofthemonth?A.$1,000.B.$800.C.$1,200.D.$200.,$1,000+$100=$1,100$1,100-$300=$800,LearningObjective4,Prepareascheduleofcostofgoodsmanufactured.,ScheduleofCostofGoodsManufactured,Calculatesthecostofrawmaterial,directlaborandmanufacturingoverheadusedinproduction.,Calculatesthemanufacturingcostsassociatedwithgoodsthatwerefinishedduringtheperiod.,Asitemsareremovedfromrawmaterialsinventoryandplacedintotheproductionprocess,theyarecalleddirectmaterials.,ProductCostFlows,ProductCostFlows,ProductCostFlows,Allmanufacturingcostsincurredduringtheperiodareaddedtothebeginningbalanceofworkinprocess.,ProductCostFlows,Costsassociatedwiththegoodsthatarecompletedduringtheperiodaretransferredtofinishedgoodsinventory.,ProductCostFlows,ManufacturingCostFlows,BalanceSheetCostsInventories,IncomeStatementExpenses,CostThe$100listedonthebalancesheetasaninventory,ExpenseThe$100expenseduntilthefinishedgoodsaresoldthataremadeoftherawmaterial,PayoutPay$100forRawMaterial,QuickCheck,Beginningrawmaterialsinventorywas$32,000.Duringthemonth,$276,000ofrawmaterialwaspurchased.Acountattheendofthemonthrevealedthat$28,000ofrawmaterialwasstillpresent.Whatisthecostofdirectmaterialused?A.$276,000B.$272,000C.$280,000D.$2,000,QuickCheck,Directmaterialsusedinproductiontotaled$280,000.Directlaborwas$375,000andfactoryoverheadwas$180,000.Whatweretotalmanufacturingcostsincurredforthemonth?A.$555,000B.$835,000C.$655,000D.Cannotbedetermined.,QuickCheck,Beginningworkinprocesswas$125,000.Manufacturingcostsincurredforthemonthwere$835,000.Therewere$200,000ofpartiallyfinishedgoodsremaininginworkinprocessinventoryattheendofthemonth.Whatwasthecostofgoodsmanufacturedduringthemonth?A.$1,160,000B.$910,000C.$760,000D.Cannotbedetermined.,QuickCheck,Beginningfinishedgoodsinventorywas$130,000.Thecostofgoodsmanufacturedforthemonthwas$760,000.Andtheendingfinishedgoodsinventorywas$150,000.Whatwasthecostofgoodssoldforthemonth?A.$20,000.B.$740,000.C.$780,000.D.$760,000.,LearningObjective5,Understandthedifferencesbetweenvariablecostsandfixedcosts.,CostClassificationsforPredictingCostBehavior,Howacostwillreacttochangesinthelevelofactivitywithintherelevantrange.Totalvariablecostschangewhenactivitychanges.Totalfixedcostsremainunchangedwhenactivitychanges.,VariableCost,Yourtotallongdistancetelephonebillisbasedonhowmanyminutesyoutalk.,VariableCostPerUnit,Thecostperlongdistanceminutetalkedisconstant.,FixedCost,Yourmonthlybasictelephonebillprobablydoesnotchangewhenyoumakemorelocalcalls.,FixedCostPerUnit,Theaveragefixedcostperlocalcalldecreasesasmorelocalcallsaremade.,CostClassificationsforPredictingCostBehavior,ImportanceofunderstandingcostbehaviorFoodcostsatahotelAhammercosts$1,000,QuickCheck,WhichofthefollowingcostswouldbevariablewithrespecttothenumberofconessoldataBaskins&Robbinsshop?(Theremaybemorethanonecorrectanswer.)A.Thecostoflightingthestore.B.Thewagesofthestoremanager.C.Thecostoficecream.D.Thecostofnapkinsforcustomers.,QuickCheck,WhichofthefollowingcostswouldbevariablewithrespecttothenumberofconessoldataBaskins&Robbinsshop?(Theremaybemorethanonecorrectanswer.)A.Thecostoflightingthestore.B.Thewagesofthestoremanager.C.Thecostoficecream.D.Thecostofnapkinsforcustomers.,LearningObjective6,Understandthedifferencesbetweendirectandindirectcosts.,CostObject,Anythingforwhichcostdataaredesired.,Examples:products,customers,jobs,organizationalsubunits,etc.,AssigningCoststoCostObjects,DirectcostsCoststhatcanbeeasilyandconvenientlytracedtoaunitofproductorothercostobject.Examples:directmaterialanddirectlabor,IndirectcostsCoststhatcannotbeeasilyandconvenientlytracedtoaunitofproductorothercostobject.Example:manufacturingoverhead,CommoncostAcostthatisincurredtosupportanumberofcostobjectsbutcannotbetracedtothemindividually.AnExample-AtradewithDOD,LearningObjective7,Defineandgiveexamplesofcostclassificationsusedinmakingdecisions:differentialcosts,opportunitycosts,andsunkcosts.,Everydecisioninvolvesachoicebetweenatleasttwoalternatives.Onlythosecostsandbenefitsthatdifferbetweenalternativesarerelevantinadecision.Allothercostsandbenefitscanandshouldbeignored.,CostClassificationsforDecisionMaking,DifferentialCostandRevenue,Costsandrevenuesthatdifferamongalternatives.,Example:Youhaveajobpaying$1,500permonthinyourhometown.Youhaveajobofferinaneighboringcitythatpays$2,000permonth.Thecommutingcosttothecityis$300permonth.,Differentialrevenueis:$2,000$1,500=$500,Differentialcostis:$300,OpportunityCost,Thepotentialbenefitthatisgivenupwhenonealternativeisselectedoveranother.,Example:Ifyouwerenotattendingcollege,youcouldbeearningRMB100,000peryear.YouropportunitycostofattendingcollegeforoneyearisRMB100,000.,SunkCosts,Sunkcostshavealreadybeenincurredandcannotbechangednoworinthefuture.Theyshouldbeignoredwhenmakingdecisions.,Example:Youboughtanautomobilethatcost$10,000twoyearsago.The$10,000costissunkbecausewhetheryoudriveit,parkit,tradeit,orsellit,youcannotchangethe$10,000cost.,QuickCheck,SupposeyouaretryingtodecidewhethertodriveortakethetraintoPortlandtoattendaconcert.Youhaveamplecashtodoeither,butyoudontwanttowastemoneyneedlessly.Isthecostofthetrainticketrelevantinthisdecision?Inotherwords,shouldthecostofthetrainticketaffectthedecisionofwhetheryoudriveortakethetraintoPortland?A.Yes,thecostofthetrainticketisrelevant.B.No,thecostofthetrainticketisnotrelevant.,QuickCheck,SupposeyouaretryingtodecidewhethertodriveortakethetraintoPortlandtoattendaconcert.Youhaveamplecashtodoeither,butyoudontwanttowastemoneyneedlessly.Isthecostofthetrainticketrelevantinthisdecision?Inotherwords,shouldthecostofthetrainticketaffectthedecisionofwhetheryoudriveortakethetraintoPortland?A.Yes,thecostofthetrainticketisrel