activity based costing (作业成本法或ABC成本法)

1、5 Activity-Based Costing And Activity-Based Management1. Explain how broad averaging undercosts and overcosts products or services2.Present three guidelines for refining a costing system3.Distinguish between simple and activity-based costing systems4.Describe a four-part cost hierarchy5.Cost product

2、s or services using activity-based costing 6.Explain how activity-based costing systems are used in activity-based management7.Compare activity-based costing systems and department costing systems Learning objectives8.Evaluate the costs and benefits of implementing activity-based costing systems1Pro

3、duct Undercosting a product consumes a high level of resources but is reported to have a low cost per unit .Product Overdercosting a product consumes a low level of resources but is reported to have a high cost per unit .Product UndercostingActually lossesProduct OvercostingOverprice products 1.Comp

4、anies that undercost products will most likely lose market share. False Companies that overcost products will most likely lose market share. 1.Undercosting a particular product may result in:a. loss of market shareb. lower profitsc. operating inefficienciesd. understating total product costs2.Overco

5、sting of a product is MOST likely to result from:a. misallocating direct labor costsb. overpricing the productc. undercosting another productd. understating total product costsProduct-Cost Cross-Subsidization Product-Cost Cross-Subsidization means that if a company undercosts one of its products, th

6、en it will overcost at least one of its other products .if a company overcosts one of its products, it will undercost at least one of its other products. 2.If a company undercosts one of its products, then it will overcost at least one of its other products. True 3.A company produces three products;

7、 if one product is overcosted thena. one product is undercosted.b. one or two products are undercosted.c. two products are undercosted.d. no products are undercosted. 4.Uniformly assigning the costs of resources to cost objects when those resources are actually used in a nonuniform way is called:a.

8、overcostingb. undercostingc. peanut-butter costingd. department costingDesign Manufacturing DistributionPhase 1Phase 2Phase 3Design Products and processesManufacturing Ship and distribute lensesSimple Costing System 1Identify the Products That Are the Chosen Cost Objects2Identify the direct cost of

9、the Products3Select the CostAllocation Base to Use for Allocating Indirect Cost to the Products4Identify the indirect costs Associated with Each Cost-Allocation Base.5Compute the Rate per Unit of Each Cost-Allocation Base Used to Allocate Indirect Costs to the Products6Compute the Indirect Cost Allo

10、cated to the Products7Compute the Total Costs of the products by Adding All Direct and Indirect Costs Assigned to the Products2Refining Costing SystemRefined Costing Systemreduces the use of broad averages for assigning the cost of resources to cost objects and provides better measurement of the cos

11、ts of indirect resources used by different cost objects-no matter how differently the different cost objects use indirect resources. 3.When refining a costing system, a company should classify as many costs as possible as indirect costs. False When refining a costing system, a company should classif

12、y as many costs as possible as direct costs. 4.In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-allocation base. TrueGuideline for Refining a Costing SystemIndirect-cost poolsCost-allocation basedDirect-cost tracing 5.Indirect labor and distribution co

13、sts would most likely be in the same activity-cost pool. False Indirect labor and distribution costs would not be in the same activity-cost pool because their cost drivers are very dissimilar. A cost driver of indirect labor would include direct labor hours, while a cost driver of distribution costs

14、 would include, for example, cubic feet of cargo moved.3Activity-based Costing Activity-based costing-unit refines a costing system by identifying individual activities as the fundamental cost objects.ActivityeventtaskUnit of work 6.Activity-based costing helps identify various activities that expla

15、in why costs are incurred. True 7.Direct tracing of costs improves cost accuracy. True 8. ABC systems attempt to trace more costs as direct costs. True 9.ABC systems create homogeneous cost pools linked to different activities. True 10.ABC systems seek a cost allocation base that has a cause-and-eff

16、ect relationship with costs in the cost pool. True 5.Design of an ABC system requires: a. that the job bid process be redesigned b. that a cause-and-effect relationship exists between resource costs and individual activities c. an adjustment to product mix d. Both b and c are correct.6.ABC systems c

17、reate:a. one large cost poolb. homogenous activity-related cost poolsc. activity-cost pools with a broad focusd. activity-cost pools containing many direct costs7.Traditional cost systems distort product costs because: a. they do not know how to identify the appropriate units b. competitive pricing

18、is ignored c. they emphasize financial accounting requirements d. they apply average support costs to each unit of product8.Activity-based costing (ABC) can eliminate cost distortions because ABC: a. develops cost drivers that have a cause-and-effect relationship with the activities performed b. est

19、ablishes multiple cost pools c. eliminates product variations d. recognizes interactions between different departments in assigning support costs 9.Merriman Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $400,000 10,000 hour

20、s Account billing lines $280,000 4,000,000 lines Account verification accounts$150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $880,000The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000

21、hoursAccount billing lines 400,000 lines 200,000 linesAccount verification accounts10,000 accounts 8,000 accountsCorrespondence letters 1,000 letters 1,600 letters（1）How much of the account inquiry cost will be assigned to Department A? a. $80,000b. $400,000c. $160,000d. None of these answers are co

22、rrect. . （2）How much of the account billing cost will be assigned to Department B? a. $28,000b. $280,000c. $14,000d. None of these answers are correct. （3）How much of account verification costs will be assigned to Department A?a. $30,000b. $37,500c. $150,000d. $10,000（4）How much of correspondence co

23、sts will be assigned to Department B?a. $1,600b. $12,500c. $50,000d. $20,000 （5）How much of the total costs will be assigned to Department A?a. $158,000b. $80,000c. $224,000d. $880,000（6）How much of the total costs will be assigned to Department B?a. $158,000b. $80,000c. $224,000d. $880,00010.Dalrym

24、ple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $80,000. The budgeted number of nozzles to be inserted is 40,000. What is the budgeted indirect cost allocation rate for this activity?4Cost hierarchy A cost hierarchy categorizes indirect

25、costs into different cost pools on the basis of the different types of cost drivers, or cost-allocation bases, or different degrees of difficulty in determining cause-and-effect (or benefits-received) relationships.ABC systemOutput unit-level costsBatch-level costsProduct-sustaining costsFacility-su

26、staining costsOutput unit-level costsThe costs of activities performed on each individual unit of a product or service.Batch-level costsThe costs of activities related to a group of units of products or services rather than to each individual unit of product or service.Product-sustaining costsThe co

27、sts of activities undertaken to support individual products or services regardless of the number of units or batches in which the units are produced.Facility-sustaining costsThe costs of activities that cannot be traced to individual products or services but that support the organization as a whole.

28、5Implementing Activity-Based Costing at Plastim1. Identify the Products That Are the Chosen Cost Objects.2.Identify the Direct Costs of the Products.3.Select the Cost-Allocation Bases to Use for Allocating Indirect Costs to the Products.4.Identify the Indirect Costs Associated with Each Cost-Allocat

29、ion Based.5.Compute the Rate per Unit of Each Cost-Allocation Base Used to Allocate Indirect Costs to the Products.6.Compute the Indirect Costs Allocated to the Products.7.Compute the Total Cost of the Products by Adding All Direct and Indirect Costs Assigned to the Products. Comparing Alternative C

30、osting Systems1.ABC systems trace more costs as direct costs;2.ABC systems create homogeneous cost pools linked to different activities;3.For each activity-cost pool, ABC systemsSeek a cost-allocation base that has a cause-and-effect relationship with costs in the cost pool.Using ABC Systems for Imp

31、roving Cost Management and ProfitabilityActivity-Based Management Activity-Based Management(ABM) is a method of management decision-making that activity-based costing information to improve customer satisfaction and profitability.ABMPricing and Product-Mix DecisionsCost Reduction and Process Improve

32、ment DecisionDesign DecisionsPlanning and Managing Activities67Activity-Based Costing and Department Costing Systems1.A single activity accounts for a sizable proportion of the departments costs;2.Significant costs are incurred on different activities within a department but each activity has the sa

33、me cost driver and hence cost-allocation base;3.Significant costs are incurred for different products use resources from the different activity areas in the same proportions.8Implementing ABC Systems 1.The main costs and limitations of an ABC system are the operational complexities and measurements

34、necessary to implement it. 2.As ABC systems get very detail and more cost pools are created, more allocations are necessary to calculate activity costs for each cost pool. 3.At times, companies are also forced to use allocation bases for which data are readily available rather than allocation bases

35、they would have liked to use. 4.As such trends continue, more-detailed ABC systems should be better able to pass the cost-benefit test.1. Activity-based management refers to the use of information derived from ABC analysis to analyze and improve operations. True 2.Information derived from an ABC ana

36、lysis might be used to eliminate nonvalue-added activities True 3.Department-costing systems are a further refinement of ABC systems. False ABC systems are a further refinement of department-costing systems. 4.ABC systems are useful in manufacturing, but not in the merchandising or service industrie

37、s. False ABC systems can be useful in manufacturing, merchandising, and service industries. 5. ABC systems always provide decision-making benefits that exceed implementation costs. False ABC system decision-making benefits do not always exceed implementation costs. This issue needs to be evaluated a

38、nd if the costs exceed the benefits, then an ABC system should not be implemented. 6.The primary costs of an ABC system are the measurements necessary to implement the system. True 1.Production-cost cross-subsidization results from a. allocating indirect costs to multiple products. b. assigning trac

39、ed costs to each product. c. assigning costs to different products using varied costing systems within the same organization. d. assigning broadly averaged costs across multiple products without recognizing amounts of resources used by which products. 2.In refining a cost system a. total direct cost

40、s are unchanged because they can be traced in an economically feasible way to the product and traced costs are more accurate. b. the costs are grouped in homogeneous pools of the same or similar amounts. c. the criterion of cause and effect is used to relate indirect costs to a factor that systemati

41、cally links to a cost object. d. the organization looks for cost-allocation bases that will provide a uniform spreading of indirect costs to each product. 3. Each of the following statements is true EXCEPT: a. traditional product costing systems seek to assign all manufacturing costs to products b.

42、ABC product costing systems seek to assign all manufacturing costs to products c. traditional product costing systems are more refined than an ABC system d. cost distortions occur when a mismatch (incorrect association) occurs between the way indirect costs are incurred and the basis for their assig

43、nment to individual products 4.The MOST likely example of an output unit-level cost is: a. general administrative costsb. paying suppliers for orders receivedc. engineering costsd. machine depreciation5. The MOST likely example of a batch-level cost is:a. utility costsb. machine repairsc. product-de

44、signing costsd. setup costs6. Design costs are an example of:a. unit-level costsb. batch-level costsc. product-sustaining costsd. facility-sustaining costsProducts S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing system. An activity analysis revealed that although produ

45、ction requirements are identical, S5 requires 45 minutes less setup time than CP8. 7. According to an ABC system, CP8 is _ under the traditional system. a. undercostedb. overcostedc. fairly costedd. accurately costed 8. According to an ABC system, S5 uses a disproportionately: a. smaller amount of u

46、nit-level costsb. larger amount of unit-level costsc. smaller amount of batch-level costsd. larger amount of batch-level costs9. The focus of ABC systems is on: a. long-term decisions b. short-term decisions c. make-or-buy decisions d. special-pricing decisions10.When designing a costing system, it

47、is easiest to: a. calculate total costs first and then per-unit cost b. calculate per-unit costs first and then total costs c. calculate long-term costs first and then short-term costs d. calculate short-term costs first and then long-term costsBarnes Corporation manufactures two models of office ch

48、airs, a standard and a deluxe model. The following activity and cost information has been compiled:Number ofNumber of Number ofProductSetupsComponents Direct Labor HoursStandard 22 8 375Deluxe 28 12 225Overhead costs$20,000$40,00011. (1)Assume a traditional costing system applies the $60,000 of over

49、head costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?a. $24,800b. $35,200c. $37,500d. $22,500(2)Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead cos

50、ts assigned to the deluxe model?a. $24,800b. $35,200c. $37,500d. $22,500(3) Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?a. $24,800b. $35,200c. $37,500d. $22,500 (4)Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the deluxe model?a. $24,800b. $35,200c. $37,500d