会计学原理英文教学课件：Chapter-18 Managerial Accounting Concepts and Principles

1、MANAGERIAL ACCOUNTINGCONCEPTS AND PRINCIPLESChapter 18Managerial accountingprovides financial and non-financial informationfor managers of anorganization and other decision makersFinancial accountingprovides generalpurpose financialinformation to thosewho are outsidethe organization.MANAGERIAL ACCOU

2、NTING BASICSC 1PURPOSE OF MANAGERIAL ACCOUNTINGC 1NATURE OF MANAGERIAL ACCOUNTINGC 1MANAGERIAL ACCOUNTING IN BUSINESSCustomer OrientationGlobalEconomyLeanBusinessModelEliminationof WasteSatisfy theCustomerPositiveReturnLean Business ModelC 2LEAN PRACTICESCustomerOrientationin a GlobalEconomyC 2onQua

3、lity improvementapplied to all aspects ofbusiness activities.Seek and uncover waste.Employees encouragedto try new methodsto improve quality.Company emphasizesvalue of quality throughquality awards.TOTAL QUALITY MANAGEMENTC 2Complete productsjust in time toship to customers.Complete partsjust in tim

4、e forassembly into products.Receive materialsjust in time forproduction.Scheduleproduction.Receivecustomerorders.JUST-IN-TIME (JIT) MANUFACTURINGC 2IMPLICATIONS FORMANAGERIAL ACCOUNTINGUnderstand the nature and sources of costMeasure value provided to customersPrice paid is an important determinant

5、of valueC 2FRAUD AND ETHICS INMANAGERIAL ACCOUNTINGFraud involves the use of ones job for personal gain through the deliberate misuse of the employers assets. There are many types of fraud, but common characteristics of all fraud are that it: Is done to provide direct or indirect benefit to the empl

6、oyee. Violates the employees duties to his employer. Costs the employer money. Is secret.Fraud increases business costs. Management relies on internal control systems to monitor business activities and on accounting systems to track costs and identify unexpected amounts.Ethics are beliefs that disti

7、nguish right from wrong. They are accepted standards of good and bad behavior. The Institute of Management Accountants has issued a code of ethics to help accountants involved in solving ethical dilemmas. C 3ActivityCostActivityCostTYPES OF COST CLASSIFICATIONSCLASSIFICATION BY BEHAVIOR Cost behavio

8、r refers to how a cost will react to changes in the level of business activity.Total fixed costs donot change when activity changes.Total variable costs change in proportionto activity changes.Mixed costs are combinations of fixed and variable costs.ActivityCostC 4Direct costsCosts traceable to a si

9、ngle cost object.Examples: material and labor cost for a product.Indirect costsCosts that cannotbe traced to asingle cost object.Example: A maintenance expenditurebenefiting two ormore departments.TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY TRACEABILITYC 4The degree of control depends on theleve

10、l of management in the organization.More ControlMore ControlVery little controlTYPES OF COST CLASSIFICATIONS CLASSIFICATION BY CONTROLLABILITYC 4TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY RELEVANCESunk costs have already been incurred and cannot be avoided or changed. Sunk costs should not be c

11、onsidered in decisions. Example: An automobile purchased two years ago cost $15,000. The $15,000 cost is sunk because whether the car is driven, sold, traded, or abandoned, the cost will not change.Out-of-pocket costs require future outlays of cash.Out-of-pocket costs should be considered in decisio

12、ns. Example: You plan on buying a new car for $25,000 next month. The cost of the new car is an out-of-pocket cost because you can choose to spend or not to spend the $25,000 next month.C 4TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY RELEVANCE An opportunity cost is the potential benefit lost by

13、choosing a specific action from two or more alternatives Example: If you were not attending college, you could be earning $20,000 per year. Your opportunity cost of attending college for one year is $20,000.C 4ProductTYPES OF COST CLASSIFICATIONS CLASSIFICATION BY FUNCTIONDirectLaborDirectMaterialMa

14、nufacturing OverheadPeriod costs are expensesnot attached to the product.Administrative costs are non-manufacturing costsof staff support andadministrative functions.Selling costs are incurred toobtain orders and to deliverfinished goods to customers.C 5Period Costs(Expenses)Product Costs(Inventory)

15、Inventory Not Sold in 2009OperatingExpensesCost ofGoods SoldRaw MaterialsGoods in ProcessFinished GoodsCost ofGoods Sold2009 CostsIncurred2009 IncomeStatement2010 IncomeStatement2010 BalanceSheet InventoryInventorySold in 2009PERIOD AND PRODUCT COSTSIN FINANCIAL STATEMENTSC 5EXAMPLES OF MULTIPLE COS

16、T CLASSIFICATIONSC 5I suppose these samecost concepts apply toservice companies.COST CONCEPTS FORSERVICE COMPANIESC 5Merchandisers . . .Buy finished goods.Sell finished goods. SaleMartManufacturers . . .Buy raw materials.Produce and sell finished goods.REPORTING MANUFACTURING ACTIVITIESC 6Completedp

17、roductsfor sale.Materialswaiting to beprocessed.Can be director indirect.Partially completeproducts.Material to whichsome labor and/oroverhead havebeen added.RawMaterialsFinishedGoodsGoods inProcessC 6MANUFACTURERS BALANCE SHEET MERCHANDISERCurrent AssetsCashReceivablesMerchandise Inventory MANUFACT

18、URERCurrent AssetsCashReceivablesInventoriesRaw MaterialsGoods in ProcessFinished GoodsThe only difference is inventory.MANUFACTURERS BALANCE SHEETC 6Beginning Merchandise InventoryBeginning Finished Goods InventoryCost of Goods PurchasedCost of GoodsManufacturedEnding Merchandise InventoryEndingFin

19、ished Goods InventoryCost of Goods SoldMerchandiserManufacturer+_+=_The major differenceMANUFACTURERS INCOME STATEMENT C 6COST OF GOODS SOLD FOR AMERCHANDISER AND MANUFACTURER Cost of goods sold for manufacturers differs only slightly from cost of goods sold for merchandisers.P 1Materials that are s

20、eparately and readily traced to a particular product.Example:Steel used in theframe of amountain bike.DIRECT MATERIALSP 1Labor costs that are separately andreadily traced to finished product. Example:Wages paid to amountain bike assembly worker.DIRECT LABORP 1 All manufacturing costs except direct m

21、aterial and direct labor.Factory costs that cannot be separately or readily traced directly to products.Examples:Indirect labor maintenanceIndirect material cleaning suppliesFactory utility costsSupervisory costsFACTORY OVERHEADP 1DirectMaterialDirectLaborManufacturingOverheadPrimeCostConversionCost

22、Manufacturing costs are oftencombined as follows:PRIME AND CONVERSION COSTSP 1QUESTIONWhat type of account is the goods in process account?a.Income statement expense account.b.Balance sheet inventory account.c.Temporary clearing account for direct material and direct labor.d.Holding account for manu

23、facturing overhead and direct labor.P 1QUESTIONThe primary distinction between product and period costs is . . .a.Product costs are expensed in the period incurred.b.Product costs are directly traceable to product units.c.Product costs are inventoriable.d.Period costs are inventoriable.P 1Finished G

24、oodsBeginning InventoryCost of GoodsManufacturedFinishedGoodsEndingInventoryRawMaterialsBeginningInventoryRawMaterialsPurchasesRaw MaterialsEnding InventoryCostofGoodsSoldGoods in ProcessBeginning InventoryDirect LaborFactoryOverheadRaw MaterialsUsedSales activityProduction activityMaterialsactivity

25、ACTIVITIES AND COST FLOWSIN MANUFACTURING Goods in ProcessEnding InventoryC 7Summarizes the types and amounts of costsIncurred in a companys manufacturing process.MANUFACTURING STATEMENT Direct Materials Used +Direct Labor +Factory Overhead =Total Manufacturing Costs +Beginning Work in Process Ending Work in Process =Cost of Goods ManufacturedP 2Lets take a look at Rocky Mountain Bikes ManufacturingStatement.MANUFACTURING STATEMENTP 2MANUFACTURING STATEMENTP 2P 2Include all direct lab