ABC成本分析法.PPT72页.ppt

Topic6Activity-BasedCosting,MAA703ManagementAccounting,EvolutionofABC,Conventionalcostingsystemsuseatwo-stageallocationprocess:1.ductiondepartmentoverheadcostsareallocatedtoproductsusingavolume-basedpredeterminedoverheadrate.,Productcostsdontmakesense,Problem:TheremaybenorelationshipbetweentheoverheadapplicationbaseandthewaythatdifferentproductscauseoverheadcostsTheresult:High-volumesimpleproductsareover-costedandover-pricedLow-volumecomplexproductsareunder-costedandunder-priced,PlantwideOverheadRates,Companieshavetendedtousedirectlabourastheoverheadapplicationbase.Howeverdirectlabourisnowarelativelyminorpartoftotalmanufacturingcost.Manytasksthatusedtobedonebyhandarenowdonebyautomatedequipment.,Atwostageprocessisnecessarybecausecostsareallocatedtodepartmentsandthentoproducts.,DepartmentalOverheadRates,Department1,Department2,Department3,Costpools,IndirectLabor,IndirectMaterials,OtherOverhead,StageOne:Costsassignedtopools,DepartmentalOverheadRates,Department1,Department2,Department3,Costpools,StageOne:Costsassignedtopools,Products,StageTwo:Costsappliedtoproducts,DepartmentalOverheadRates,IndirectLabor,IndirectMaterials,OtherOverhead,Department1,Department2,Department3,Costpools,StageOne:Costsassignedtopools,Products,StageTwo:Costsappliedtoproducts,DirectLabourHours,MachineHours,RawMaterialsCost,DepartmentalAllocationBases,DepartmentalOverheadRates,IndirectLabor,IndirectMaterials,OtherOverhead,CostDistortionscausedby2-stageallocations,ThereisanolinkbetweenthecauseofsupportactivitycostsandthebasisforassigningthesecoststoproductsWhy?1.Allocationsarebasedonunitorvolumerelatedmeasures.2.Differentproductsconsumedifferentamountsofsupportactivities.,Questionableprofitmargins,Tocompeteinthemarketplace,somecompanieshavehadtocutthepricesofhighvolumepopularitems.ButTheyhavebeenabletoachievehighmark-upsonlowvolumespecialtyproducts.,Erosionofcompanyprofits,PricecutsproduceincreasedsalesinunitsbutdecreasedtotalrevenueHighmark-upsonspecialtyproductsdidntoffsetthefallinprofitmarginsofhighvolumeproducts,Causesofproblems,Increasedproductdiversitychangingcoststructuresuseofvolume-basedcostdriversHaveresultedin:distortedproductcosts,Solution:ActivityBasedCosting,ABCusescostdriversthatdirectlylinkactivitiesperformedtoproductsmade.costdriversareselectedwhichmeasuretheaveragedemandplacedoneachactivitybyeachproduct.activitycostpoolsareassignedtoproductsinproportiontothewaythattheyconsumeeachactivity.,Solution:ActivityBasedCosting,ACTIVITIESCONSUMERESOURCESPRODUCTSCONSUMEACTIVITIESActivitiesareusedtolinkresourcecoststoproducts,ActivityBasedCosting(ABC),Theobjectiveofactivity-basedcostingistounderstandthecausesofoverheadcostsandtoidentifytherealprofitabilityofproductsandcustomers.,ABCisagoodsupplementtoourtraditionalcostsystem,Iagree!,Overheadratesmaybebasedonactivityatcapacity.,ActivityBasedCosting(ABC),Activity-BasedCosting,Bothmanufacturingandnonmanufacturingcostsmaybeassignedtoproducts.,Somemanufacturingcostsmaybeexcludedfromproductcosts.,Thereareanumberofcostpools,eachofwhichisallocatedusingauniquemeasureofactivity.,Allocationbasesoftendifferfromtraditionalcostingsystems.,HowCostsareTreatedUnderActivity-BasedCosting,LevelofComplexity,OverheadAllocation,PlantwideOverheadRate,DepartmentalOverheadRates,ActivityBasedCosting,Activity-basedcosting,isawayofmeasuringboththecostofcostobjectsandtheperformanceofactivitiescanhelpsolveproblemssuchasdistortedproductcostspoorcostcontroltheformofABCadopteddependsontheproblemsthatneedtobeaddressed,DesigninganABCSystem,CostObjects(e.g.,productsandcustomers),Activities,ConsumptionofResources,Cost,IdentifyingandDefiningActivities,AnACTIVITYisapartoftheproductionprocessforwhichmanagementwantsaseparatereportingofcosts.,Unit-LevelActivities,Batch-LevelActivities,Product-sustainingActivities,Facility-sustainingActivities,OutputUnit-LevelCosts.,areresourcessacrificedonactivitiesperformedoneachindividualunitofproductorservicee.g.EnergyusedbymachinesMachinedepreciationorrepairsTheKeyQuestion:Doestheamountoftheactivitycostpoolincreasewiththenumberofunitsproduced?,Batch-LevelCosts.,areresourcessacrificedonactivitiesthatarerelatedtoabatchofunitsratherthantoeachindividualunitofproductorservice.Set-upactivitycostsmaybedrivenbyset-uphours.Thiswilldependonthenumberset-upscarriedouti.e.onthenumberofbatchesproducedandthetimeeachset-uptakes.,Product-Sustaining.,(orservice-sustaining)costsareresourcessacrificedonactivitiesundertakentosupportindividualproductsorservices.Designcostsmaybedrivenbythetimespentbyengineersdesigningtheproductitselfandplanninghowitwillbemade.,Facility-SustainingCosts.,areresourcessacrificedonactivitiesthatcannotbetracedtoindividualproductsorservicesbutwhichsupporttheorganizationasawhole.GeneraladministrationrentbuildingsecurityCEOssalary,DifferentformsofABC,Simpleapproach-includesmanufacturingoverheadonlyABCsystemforallindirectcosts-includesmanufacturingandnon-manufacturingcostsComprehensivesystem-includesallproduct-relatedcosts,exceptdirectmaterial,TheMechanicsofABC,ClassicBrassLtdmakesfinelymachinedbrassfittingsforavarietyofapplications.Forthiscompany,theultimatecostobjectsare:Products,Customerorders,andCustomers.Oneoverheadcost-shipping-canbetraceddirectlytocustomerorders.Thecompanysactivitycostpoolsareshownonthenextslide.,Step1:IdentifyandDefineActivitiesandActivityCostPools,AtClassicBrass,theABCteam,selectedthefollowingactivitycostpoolsandactivitymeasures:,Step1:IdentifyandDefineActivitiesandActivityCostPools,CustomerOrders-assignedallcostsofresourcesthatareconsumedbytakingandprocessingcustomerorders.ProductDesigns-assignedallcostsofresourcesconsumedbydesigningproducts.OrderSize-assignedallcostsofresourcesconsumedasaconsequenceofthenumberofunitsproduced.CustomerRelationsassignedallcostsassociatedwithmaintainingrelationswithcustomers.Otherassignedalloverheadcoststhatarenotassociatedwiththeothercostpools.,Step2:WheneverPossible,DirectlyTraceOverheadCoststoActivitiesandCostObjects,Step3:AssignCoststoActivityCostPools,AtClassicBrassthefollowingdistributionofresourceconsumptionacrossactivitycostpoolsisdetermined.,*Notincludedbecausetheyaredirectlytracedtocustomerorders.,Indirectfactorywages$500,000Percentconsumedbycustomerorders25%$125,000,Step3:AssignCoststoActivityCostPools,Factoryequipmentdepreciation$300,000Percentconsumedbycustomerorders20%$60,000,Step3:AssignCoststoActivityCostPools,Step3:AssignCoststoActivityCostPools,Step4:CalculateActivityRates,DirectMaterials,DirectLabor,ShippingCosts,OverheadCosts,Traced,Traced,Traced,CostObjects:Products,CustomerOrders,Customers,Step4:CalculateActivityRates,DirectMaterials,DirectLabor,ShippingCosts,OrderSize,CustomerOrders,ProductDesign,CustomerRelations,Other,OverheadCosts,CostObjects:Products,CustomerOrders,Customers,First-StageAllocation,Step4:CalculateActivityRates,DirectMaterials,DirectLabor,ShippingCosts,CostObjects:Products,CustomerOrders,Customers,OrderSize,CustomerOrders,ProductDesign,CustomerRelations,Other,OverheadCosts,First-StageAllocation,Second-StageAllocations,$/MH,$/Order,$/Design,$/Customer,Unallocated,Step4:CalculateActivityRates,TheABCteamestimatesthatClassicBrasswillhavethefollowingtotalactivitiesforeachactivitycostpool.1,000customerorders,200newdesigns,20,000machine-hours100customers.Nowtheteamcancomputetheindividualactivityratesbydividingthetotalcostforeachactivitybythetotalactivitylevels,Step4:CalculateActivityRates,Afterthefirst-stageallocationiscomplete,computationofactivityratesforeachactivitycostpoolcanbedoneasfollows:,Step5:AssignCoststoCostObjects,LetstakealookathowoursystemworksforjustonecustomerWindwardYachts.,StandardStanchions(nodesignrequired)1.400unitsorderedwith2separateorders.2.Eachstanchionrequired0.5machine-hours.3.Sellingpriceis$34each.4.Directmaterialstotal$2,110.5.Directlabortotals$1,850.6.Shippingcoststotal$180.,CustomCompassHousing(requiresnewdesign)1.Oneorderduringtheyear.2.Eachhousingrequired4machine-hours.3.Sellingpriceis$650each.4.Directmaterialstotal$13.5.Directlabortotals$50.6.Shippingcoststotal$25.,Step5:AssignCoststoCostObjects,Thecustomer-levelcostisassignedtocustomersdirectly;itisnotassignedtoproducts.,Step6:PrepareManagementReports,Step6:PrepareManagementReports,Step6:PrepareManagementReports,CustomerProfitabilityAnalysis,ProductMargins,TraditionalCostAccountingSystem(MH=machinehour),400unitsx0.5MH/unitx$50/MH=$10,000,DifferencesBetweenABCandTraditionalProductCosting,ABCwillordinarilyshiftoverheadcostsfromhigh-volumeproductsproducedinlargebatchestolow-volumeproductsproducedinsmallbatches.,UnderABCbothmanufacturingandnonmanufacturingcostsmaybeassignedtoproducts.Organization-sustainingcostsandthecostsofidlecapacityarenotassignedtoproducts.,Activity-basedversusconventionalproductcosts,Conventionalcostingassumesproductcostsaredrivenbyvolume-basedcostdriversConventionalcostingignoresbatchsize-unitsproducedinlargebatchesconsumearelativelylowamountperunitofbatchcostsABCcanincludenon-manufacturingcosts,ABCbenefitswillbegreatestwhere.,Overheadcostsareasignificantproportionoftotalcost,andalargepartofoverheadisnotdirectlyrelatedtoproductionvolumeThebusinesshasadiverseproductrange,andtheindividualproductsuseofsupportresourcesdiffersfromtheiruseofvolume-basedcostdrivers,ABCbenefitswillbegreatestwhere.,Productionactivityinvolvesdiversebatchsizesandproductcomplexity.Therearelikelytobehighcostsassociatedwithmakinginappropriatedecisions,basedoninaccurateproductcosts.Thecostofdesigning,implementingandmaintaininganABCsystemisrelativelylowduetosophisticatedITsupport,ImpedimentstointroducingABC,LackofawarenessofABCUncertaintyaboutthepotentialbenefitsfromABCFirmsunderstandtheneedforchangebutareconcernedabouttheextensiveresourcerequirementstoimplementABCResistancetochangeamongmanagersandemployeesReadingbyBoothandGiacobbe,Otheractivity-basedcostingissues,SourcesofvariationsintypesofABCincludewhetheractual(past)orbudgetedcostsareanalysedtheimplementationisaone-offprojectoranon-goingsystemcostobjects,otherthanproducts,areincluded,Otheractivity-basedcostingissues,ImplicationsofexcesscapacityABCestimatesthecostofresourcesusedtoperformactivitiestoproduceandsellproducts,whichmaynotalwaysequalthecostofresourcessuppliedneedtoaccountforthecostsofunusedcapacitywhenbudgetedcostshavebeenusedtogenerateactivity-basedproductcosts,Otheractivity-basedcostingissues,BehaviouralissueschangecanbeperceivedasthreateningABCmayrequirechangesindatacollectedandcollectionandanalysisproceduresbottom-upchangemanagementmaygivesomedegreeofownershipofanychangescausedbyABCmanagementmustbeseenascommittedtothechangeprocess,Limitationsofactivity-basedcosting,Ifahighleveloffacility-levelcostsareallocatedtoproducts,thiscanleadtoanarbitraryelementofproductcostUnitisedbatch,productandfacility-levelcostscanleadtoproductcoststhatareoflimitedusefordecisionmakingThecostofupdatinganABCsystemcanbeveryhigh,butthisisneededtoavoidproducingoutdated,irrelevantinformation,Activity-basedcostinginserviceorganisations,ABCcanbedifficulttoimplementinservicefirms,becausehighlevelsoffacilitycostscauseproblemswithcostingservicesindividualactivitiesaredifficulttoidentifybecausetheyarenon-repetitiveanon-repetitiveproductionenvironmentmakesitdifficulttoidentifyserviceoutputs,Activity-basedmanagement(ABM),Processofusinginformationfromactivity-basedcostingtoanalyseactivities,costdriversandperformancesothatcustomervalueandprofitabilityareimprovedCustomervaluethefeaturesofaproductwhichcustomersarewillingtopay,UsingABMtoreducecosts,IdentifythemajoropportunitiesforcostreductionDeterminetherealcausesofthesecostsDevelopaprogramtoeliminatethecauses,and,therefore,thecostsIntroduceperformancemeasurestomonitortheeffectivenessofcostreductionefforts,Identifyingthemajoropportunitiesforcostreduction,Value-addedactivitiesessentialtothecustomer,orbusinessNon-value-addedactivitiescanbeeliminatedwithoutdetrimenttoeitherthecustomersorthebusiness,Value-AddedCosts,Avalue-addedcostisacostthatcustomersperceiveasaddingvalue,orutility,toaproductorservicee.g.foracomputer:AdequatememoryPre-loadedsoftwareReliabilityEasy-to-usekeyboards,Non-value-addedcosts,Anon-value-addedcostisacostthatcustomersdonotperceiveasaddingvalue,orutility,toaproductorservice.CostofexpeditingReworkRepairMaterialinspectionIdletime,Activity-BasedManagement,ABMcanbeusedforProductpricingandmixdecisionsCostreductionandprocessimprovementdecisionsDesigndecisions,ProductPricingandMixDecisions,ABCgivesmanagementinsightintothecoststructuresformakingandsellingadiverserangeofproducts.Itprovidesmoreaccurateproductcostinformationandmoredetailedinformationoncostsofactivitiesandthedriversofthosecosts.,CostReductionandProcessImprovementDecisions,ManufacturinganddistributionpersonneluseABCsystemstofocusoncostreductionefforts.Managerssetcost-reductiontargetsintermsofreducingthecostperunitofthecost-allocationbase.,DesignDecisions,Managementcanidentifyandevaluatenewdesignstoimproveperformancebyevaluatinghowproductandprocessdesignsaffectactivitiesandcosts.Companiescanworkwiththeircustomerstoevaluatethecostsandpricesofalternativedesignchoices.,Just-In-TimeProductionSystems,Just-in-time(JIT)productionsystemstakea“demandpull”approachinwhichgoodsareonlymanufacturedwhenneededtosatisfycustomerorders.Demandtriggerseachstepoftheproductionprocess,startingwithcustomerdemandforafinishedproductattheendoftheprocess,tothedemandfordirectmaterialsatthebeginningoftheprocess.,MajorFeaturesofaJITSystem,ThefivemajorfeaturesofaJITsystemare:OrganizingproductioninmanufacturingcellsHiringandretaini