亨格瑞管理会计英文第15版练习答案解析

WORDWORD完美格式技术资料 专业整理技术资料 专业整理CHAPTER4COVERAGEOFLEARNINGOBJECTIVESLEARNINGOBJECTIVELO1:Describethepurposesofcostmanagementsystems.

CRITICALFUNDA- THINKINGMENTAL ASSIGN-MENTANDMATERIAL EXERCISES 31,34 50

CASES,EXCEL,COLLAB.&INTERNETEXERCISESLO2:Explaintherelationshipbetweencost,costobject,costaccumulation,andcostassignment.

45 56LO3:DistinguishbetweenA1,B136,37,38,45,4956direct andindirect39,44costs.LO4:Explainthemajorreasonsforallocatingcosts.B233,414654LO5:Identifythemain36,37,38,typesofmanufacturingcosts:directmaterials,directlabor,andindirectproductioncosts.39LO6:ExplainhowtheA257,60,61financialstatementsofmerchandisersandmanufacturersdifferbecauseofthetypesofgoodstheysell.LO7:UnderstandthemainA3,A4, 33,40,41,48,49,5055,56,differencesbetween B3,traditionalandactivity-basedcostingsystemsandwhyABCsystemsvaluetomanagers.LO8:Useactivity-based A4,costinformationtomakestrategicandoperationalcontroldecisions.

42 57,58,59,60,6132,37,43 48,49,5055,56,60CHAPTER4CostManagementSystemsandActivity-BasedCosting4-A1 (20-30min.)SeeTable4-A1onthefollowingpage.4-A2(25-30min.)1.MerchandiseInventories,1,000devices@$97$97,0002.Directmaterialsinventory$ 40,000Work-in-processinventory0Finishedgoodsinventory97,000Totalinventories$137,0003.NILEELECTRONICSPRODUCTSStatementofOperatingIncomeFortheYearEndedDecember31,Sales(9,000unitsat$170) Costofgoodssold:Beginninginventory $ 0Purchases 970,000Costofgoodsavailableforsale $Lessendinginventory Costofgoodssold(anexpense)873,000Grossmarginorgrossprofit$ 657,000Lessotherexpenses:selling&administrativeOperatingincome(alsoincomebeforetaxesinthisexample)costs185,000$ 472,000WORDWORD完美格式TABLE4-A1STATEMENTOFOPERATINGINCOME OPERATINGINCOMEBYPRODUCTLINECostofDirectgoodssold:material40,0005,00015,00020,000Direct,DireIndirect manufacturing 41,000 28,0001CostofDirectgoodssold:material40,0005,00015,00020,000Direct,DireIndirect manufacturing 41,000 28,0001 5,000 8,000 Indirect,AHours81,00033,00020,00028,000GrossprofitSellingandadministrativeCommissionsexpenses:74,00015,000(3,000)1,50025,0003,50052,00010,000Direct,DireDistributiontowarehouses10,4001,00023,0006,400Indirect,Totalsellingandadmin.expenses 25,4002,5006,50016,400ContributiontocorporateexpensesandprofitUnallocatedexpenses:Administrativesalaries48,6008,000$(5,500)$18,500$35,600Otheradministrativeexpenses4,000Totalunallocatedexpenses12,000Operatingincomebeforetax$ 36,600Sales $155,000

Custom Large SmallDetailed Std. Std.CostType,As$30,000 $45,000 $80,0001Totalmachinehoursis1,400+250+400=2,050.Indirectmanufacturingcostpermachin$41,000÷2,050=$20.Theallocationtocustomdetailedis$20×1,400machinehours=2Totalweightshippedis25,000kg+75,000kg+160,000kg=260,000kg.Indirectdistrikilogramisthen$10,400÷260,000kg=$0.04.Theallocationtocustomdetailedis$0.04$1,000.技术资料 专业整理WORDWORD完美格式技术资料 专业整理技术资料 专业整理ORINOCO,INC.StatementofOperatingIncomeFortheYearEndedDecember31,Sales(9,000unitsat$170)$1,530,000Costofgoodsmanufacturedandsold:Beginningfinishedgoodsinventory$0Costofgoodsmanufactured:BeginningWIPinventory $0Directmaterialsused530,000Directlabor 290,000Indirectmanufacturing 150,000Totalmfg.coststoaccountfor$970,000Lessendingwork-in-processinventory 0970,000Costofgoodsavailableforsale$970,000Lessendingfinishedgoodsinventory97,000Costofgoodssold(anexpense)873,000Grossmarginorgrossprofit$ 657,000Lessotherexpenses:sellingandadministrativecosts185,000Operatingincome(alsoincomebeforetaxesinthisexample)$ 472,000Thebalancesheetforthemerchandiser(Nile)hasjustonelineforinventories,theendinginventoryoftheitemspurchasedforresale.Thebalancesheetforthemanufacturer(Orinoco)hasthreeitems:directmaterialsinventory,work-in-processinventory,andfinishedgoodsinventory.Theincomestatementsaresimilarexceptforthecomputationofcostofgoodsavailableforsale. Themerchandiser(Nile)simplyshowspurchasesfortheyearplusbeginninginventory. Incontrast,themanufacturer(Orinoco)showsbeginningwork-in-processinventoryplusthethreecategoriesofcostthatcomprisemanufacturingcost(directmaterialsused,directlabor,andfactory(ormanufacturing)overhead)andthendeductstheendingwork-in-processinventory. Thethenaddsthebeginningfinishedgoodsinventorytothiscostofgoodsmanufacturedtogetthecostofgoodsavailableforsale.Thepurposeisprovidingaggregatemeasuresofinventoryvalueandcostofgoodsmanufacturedforexternalreportingtoinvestors,creditors,andotherexternalstakeholders.4-A3 (10-15min.)Therecanbemanyjustifiableanswersforeachitemotherthanthelistedcostdriverandbehavior.ThepurposeofthisexerciseistogenerateanactivediscussionregardingthosechosenbyFirstBank’smanagers.Onepointthatshouldbeemphasizedisthatmanytimesmanagerschoosecostdriversthatarenotthemostplausibleorreliablebecauseoflackofdataavailability.Costdriversarealsousedasabasistoallocateactivityandresourcecostsandsotheavailabilityofdataisoftenanimportantconsideration.ActivityOrResource* R** R

CostDriverNumberofsquarefeetNumberofperson

CostBehaviorFFc.RNumberofcomputertransactionsVd.ANumberofschedulese.RNumberofpersonhoursFf.RNumberofloaninquiriesVg.***ANumberofinvestmentsh.ANumberofapplicationsi.RNumberofpersonhoursVj.RNumberofminutesVk.RNumberofpersonhoursFl.ANumberofloans* Anargumentcanbemadethatmaintenanceofthebuildingisanactivity.Ifthiswasthecase,resourcessuchassuppliesandlaborwouldberesourcesconsumed,andseveralresourcecostdriverswouldbeneeded. Inaddition,aseparateresourceandassociatedcostdriverwouldbeneededforinsurancecosts. However,thecompanyhadacontractformaintenance(fixedprice),sothiswasafixed-costresourcethatwasaddedtootheroccupancycostssuchasinsurance. Thecostdriverchosenforalltheseoccupancycostswassquarefeetoccupiedbythevariousdepartments.** Normally,thecostdriverusedforanylaborresourceispersonhours.Itisassumedthatthestaffpersonhoursusedareregularhoursratherthanovertimeortemporarylaborhours.Thus,thecostisfixedwithrespecttochangesinhoursused. Asthehoursusedincreases(decreases)theutilizationoftheresourcesincreases(decreases)andeventually,managementwillneedtomakeadecisionwhethertoexpandcapacity(orwhethertocutbackonlabor).Thisisanexampleofastepcostthatisfixedoverwiderangesofcost-driverlevel.*** Studentsmaytrytodeterminethecostbehaviorofactivitieseventhoughtheproblemrequirementsdonotaskforit. Pointoutthatactivitiesalmostalwayshavemixedcostbehaviorbecausetheyconsumevariousresources. Someofthesearefixed-costandothersvariable-costresources. Forexample,theactivity“researchtoevaluatealoanapplication”consumessuchfixed-costresourcesasmanagerlabortimeandcomputers(assumedownedbythebank).Thisactivityalsoconsumesvariable-costresourcessuchastelecommunicationstimeandexternalcomputingservices.4-A4 (20-30min.)Thefirststepistodeterminethecostpercost-driverunitforeachactivity:Activity[Costdriver]MaterialHandling[Directmaterialscost]MonthlyManufacturingOverhead$12,000Cost-DriverActivity$200,000CostperDriverUnit$ 0.06Engineering[Engineeringchangenotices]20,000201,000.00Power[Kilowatthours]16,000400,0000.04TotalManufacturingOverhead$48,000Next,thecostsofeachactivitycanbeallocatedtoeachofthethreeproducts:PHYSICALFLOW/ALLOCATEDCOSTCost Senior Basic DeluxeMaterialHandling$.06×25,000= $1,500$.06×50,000=$ 3,000$.06×125,000=$ 7,5Engineering$1,000×13= 13,000$1,000×5= 5,000$1,000×2= 2,000Power $.04×50,000= 2,000$.04×200,000= 8,000$.04×150,000= Total $16,500 $16,000 $15,500Overheadratebasedondirectlaborcosts:Rate=Totalmanufacturingoverhead÷Totaldirectlaborcost= $48,000÷$8,000= $6.00/DL$Overheadallocatedtoeachproductis:Senior:$6.00×4,000 =$24,000Basic:$6.00×1,000 =6,000Deluxe:$6.00×3,000=18,000Total$48,000Noticethatmuchlessmanufacturingoverheadcostisallocatedtousingdirectlaborasacostdriver. Why? BecauseBasicusesonlyasmallamountoflaborbutlargeamountsofotherresources,especiallypower.Theproductcostsinrequirement1aremoreaccurateifthecostdriversaregoodindicatorsofthecausesofthecosts--theyarebothplausibleandreliable. Forexample,kilowatthoursiscertainlyabettermeasureofthecostofpowercoststhanisdirectlaborhours.Therefore,theallocationofpowercostsinrequirement1iscertainlybetterthaninrequirement2. Materialshandlingandengineeringarelikewisemoreplausible. Amanagerwouldbemuchmoreconfidentinmanufacturingoverheadallocatedtoproductsinrequirement1.Remember,however,thatthereareincrementalcostsofdatacollectionassociatedwiththemoreaccurateABCsystem. Thebenefit/costcriteriamustbeappliedindecidingwhichcostingsystemis“best.”4-B1 (20-30min.)SeeTable4-B1onthefollowingpage.4-B2 (25-30min.)$1,080,000÷45,000hours=$24perdirect-laborhour(a)$585,000÷15,000hours=$39perdirect-laborhour$495,000÷30,000hours=$16.50perdirect-laborhour(a)$585,000÷97,500hours=$6permachinehour$495,000÷30,000hours=$16.50perdirect-laborhour4. (a)$24×(1.0+14.0)=$360.00$24×(1.5+ 3.0)=$108.00$24×(1.3+ 8.0)=$223.20(b)($39×1.0)+($16.50×14.0)=$39.00+$231.00=$270.00($39×1.5)+($16.50× 3.0)=$58.50+$ 49.50=($39×1.3)+($16.50× 8.0)=$50.70+$132.00=$182.70(c)($6×12.0)+($16.50×14.0)=$ 72.00+$231.00=$303.00($6×17.0)+($16.50× 3.0)=$102.00+$ 49.50=($6×14.0)+($16.50× 8.0)=$ 84.00+$132.00=$216.00(d)Firstconsiderusingdepartmentalinsteadoffirm-widerates(partbvs.parta). Departmentalratesthatusedirect-laborhoursasthebasedecreasethecostappliedtounitsofAandCandleaveBunaffected. Otherproductsthatuserelativelylessassemblytimewillincreaseincost.Nowexaminechangingtoabaseofmachinehoursinmachining(partcvs.parta).ProductBistheonlyonewithanincreaseincostin(c)comparedto(a). Why? Becauseusesonly16%ofthedirectlaborhoursusedforA,B,andC,soitisisallocatedonly16%ofthecostsallocatedonthebasisofdirectlaborhours. Butituses40%ofthemachinehours,andthereisallocated40%ofcoststhatareallocatedonthebasisonmachinehours. Therefore,itreceivesrelativelymorecostswithbaseofmachinehoursthanwithabaseofdirect-laborhours.WORDWORD完美格式TABLE4-B1STATEMENTOFOPERATINGINCOMEThousandsofDollarsSales $990Costofgoodssold:

OPERATINGINCOMEBYPRODUCTLINELawn HandScooter Mower Tool Parts Parts Parts Indirect manufacturing946811412 In494243139112Grossprofit496107241148Sellingandadministrativeexpenses:Commissions55252010Indirect manufacturing946811412 In494243139112Grossprofit496107241148Sellingandadministrativeexpenses:Commissions55252010DiDistributiontowarehouses1502028050Totalsellingandadministrativeexpenses2054510060Directmaterial 400 175 125 100 DiCorporatesalaries11Othergeneralexpenses17Totalunallocatedexpenses28OperatingincomebeforetaxCorporatesalaries11Othergeneralexpenses17Totalunallocatedexpenses28Operatingincomebeforetax$263Unallocatedexpenses:

$ 62 $141 $ 881Totalmachinehoursis8,500+1,750+1,500=11,750.Indirectmanufacturingcostpermthen$94,000÷11,750=$8.Theallocationtoscooterpartsis$8×8,500machinehou2Totalweightshippedis100,000kg+400,000kg+250,000kg=750,000kg.Indirectdistkilogramisthen$150,000÷750,000kg=$0.20.Theallocationtoscooterpartsis$0.$20,000.技术资料 专业整理WORDWORD完美格式技术资料 专业整理技术资料 专业整理4-B3 (30-35min.)Theexistingsystemallocatesallcostsbasedondirectlaborcost. rateforallocatingindirectproductioncostsis:Estimatedindirectproductioncost÷Estimateddirectlaborcost=¥24,500,000÷¥35,000,000=70%Thatis,eachtime¥1isspentondirectlabor,Watanabeadds¥0.7ofindirectproductioncosttothecostoftheproduct.UnderanABCsystem,Watanabewouldallocateindirectproductionseparatelyforeachactivity. Thiswouldresultinthefollowingfourallocationrates:Receiving: Receivingcosts÷Directmaterialcost=¥4,800,000÷60,000,000=¥0.08per¥1ofdir.mat.Assembly: Assemblycosts÷Numberofcontrolunits=¥13,800,000÷92,000=¥150percontrolQual.Control: Qualitycontrolcost÷QChours=¥1,800,000÷600=¥3,000perQChourShipping: Shippingcost÷#ofboxesshipped=¥4,100,000÷8,200=¥500perboxshipped(a) Thecostwillcontain3components(inthousandsofyen):Directmaterial ¥ 8,000Directlabor 2,000Indirectproductioncost(¥2,000×.7=1,400) Totalcost ¥11,400Price(¥11,400×1.3) ¥14,820(b) Thecostwillhave7components,4ofthemallocatingindirectproductioncosts(totalsinthousandsofyen):Directmaterials¥8,000Directlabor2,000Receiving(¥0.08×8,000)¥640Assembly(¥150×5,000)750Qualitycontrol(¥3,000×50)150Shipping(¥500×600)300Totalindirectproductioncost 1,840TotalcostPrice(11,840×1.3)

¥11,840¥15,392TheorderfromNissanrequiresarelativelylargeamountofreceiving,qualitycontrol,andshippingresourcescomparedtotherelativeamountoflaborrequired. Thismakesitsindirectproductioncostsarerelativelyexpensiverelativetothelaborrequired. ThefollowingillustrateswhyallocationonthebasedonthefourActivitybasisoflaborcostactivities:BudgetedCost-AllocationBaseresultsinlesscostsNissanCost-AllocationBasethanallocationsNissanPercentageDirectmaterials60,000,0008,000,00013.3%Directlabor35,000,0002,000,0005.7Receiving60,000,0008,000,00013.3Assembly92,0005,0005.4Qualitycontrol600508.3Shipping8,2006007.3Usingthesingledirect-laborcost-allocationbase,thisorderwouldreceive5.7%ofallindirectproductioncosts. ThemainreasonthatindirectproductioncostsforthisorderundertheABCsystemarerelativelyhighisthelargerelativecostofmaterialsthatdrivesalargeallocation(13.3%)ofreceivingcoststothisorder. Theallocationsofbothqualitycontrolandshippingcostsareslightlylargerthattheywouldbeusingadirect-laborcost-allocationbase,whiletheallocationofassemblycostsisslightlysmaller.4-B4 (50-60min.)Asummaryoftheanalysesfollows.Pen Cell-PhoneCasings Casings CompanyBaseGrossProfitPercentage* 1.25% 38.75% 8.07%PlanGrossProfitPercentage** 10.80% 37.20% 17.40%SupportofProductManager? Strong NoneSupportofPresident? Moderate*SeeExhibit4-6onp.136ofthetext.**SeePanelBofExhibit4-B4thatfollows.Exhibit4-B4,PanelsAandBonthefollowingpagescanbeusedtoexplaintheimpactofthecontroller’sideausingtheprocessmapofthetraditionalcostingsystemandtherelatedfinancialreports.Noticethatthe$80,000annualdecreaseinthecostofengineersneedstobeconvertedtoa$20,000quarterlysavings. Thecontroller’sideawillresultinanincreaseof9.55%inthegrossprofitofthepen-casingslinebutadecreaseof1.55%inthecell-phoneline.Theproductmanagerofpencasingswouldprobablygivestrongsupporttotheideabutthecell-phonecasingsmanagerwouldmostlikelynotsupporttheidea.Althoughthecompany-levelgrossprofitmarginimproves,thepresident’ssupportmaynotbestrong.Why?Thereisnotastrongconsensusamongproduct-linemanagers.Topmanagementisnormallyhesitanttosupportactionsthatdonothavetheunanimoussupportamongproduct-linemanagersunlessthereissolidevidenceofmaterialimprovementinprofitability.Whilethecurrentlosswouldbereversed,thereturnonsalesisstillnominalat3,500÷$480,000=.73%.Exhibit4-B4:PanelAProcessMapofTraditionalCostSystemAllUnallocatedValueChainCosts$80,000AllUnallocatedValueChainCosts$80,000Unallocated$80,000$200,000CostDriverDirectMaterialsforPenCasings$22,500DirectLaborPenCasings$135,000DirectMaterialsforCellPhoneCasings$24,000DirectLaborforDirectMaterialsforPenCasings$22,500DirectLaborPenCasings$135,000DirectMaterialsforCellPhoneCasings$24,000DirectLaborforCellPhoneCasings$15,000PenCasingsSalesCellPhoneSales$120,000WORDWORD完美格式Exhibit4-B4:PanelBPRO-FORMAFINANCIALREPORTS:TRADITIONALCOSTALLOCATIONSTATEMENTOFOPERTINGINCOME CONTRIBUTIONTOCORPORATECOSTAND PROFIT[EXTERNALREPORTINGPURPOSE] [INTERNALSTRATEGICDECISIONMAKIPenCasingsCellPhoSalesPenCasingsCellPhoSalesCostofgoodssold:$480,000$360,000$1Directmaterial46,50022,500Directlabor150,000135,000Indirectmanufacturing200,000163,6363Costofgoodssold396,500321,136Grossprofit83,500$ 38,864$Corporateexpenses(unallocated)80,000Operatingincome$ 3,500Grossprofitmargin17.40%510.80%371.$80,000×.75×22.$12,000×23.$200,000×[4,500/(4,500+1,000)]4.$200,000×[1,000/(4,500+1,000)]5.$83,500/$480,000技术资料 专业整理WORDWORD完美格式技术资料 专业整理技术资料 专业整理LikelyImpactontheConsumptionofResourcesSupport:LikelyImpactontheConsumptionofResourcesSupport:Cell-PhoneLessequipmentusedtosupportcell-phoneproductionIncreaseincell-phoneproductionOperationalChangePenCasingsCasingsLesspurchasingworktosupplypartsforcell-phonecasingsLessengineeringdesignworkoncellphonecasingsBasedontheinformalanalysis,thePresidentprobablywouldexpecttheprofitabilityofcell-phonecasingstoimproveandtheprofitabilityofpencasingstobeunaffected.Thisdisagreeswiththenumericalanalysis.Giventhepropensityofmanagerstoembracenumericalresults,lessweightwilllikelybegiventhisanalysiscomparedtothe“objective”numbers.Asaresult,shemayquestionthevalidityofthenumericalanalysisaswellasthevalueofthetraditionalcostingsystem!Finally,thefocusofimprovementeffortsshouldbedirectlyonthepen-casingproductline.Thisinitiativedealsmostlywiththecell-phoneline.Whatcanbedonetoimproveprofitabilityofthepencasings?Canpricesberaisedwithoutlosingtoomuchvolume?Canoperationalimprovementsbemadetolowertheindirectmanufacturingcosts?Thecontroller’sideaisworthyofsomesupportbutitdoesnotaddresstheprofitabilityissueheadon.Exhibit4-B4,PanelConthefollowingpageisaprocessmapthatcanbeusedtoexplaintheimpactofthecontroller’sidea.PanelDattheendofthesolutionprovidesadetailedevaluationofthecontroller’sidea.Pen Cell-PhoneBaseGrossProfitPercentage*PlanGrossProfitPercentage**SupportofProductManager?SupportofPresident?

Casings16.22%17.26%Neutral

Casings(28.63%)17.81%Strong

Company8.07%17.40%Strong*Seethetableonp.139ofthetext.**SeepanelDofExhibit4-B4thatfollows.Thecontroller’sideawillresultinaslightincreaseinthegrossprofitofthepen-casingslinebutadramaticturnaroundintheprofitabilityofthecell-phoneline.Theproductmanagerofpencasingswouldprobablybeneutralorslightlypositiveabouttheideabecausetheideadoesnotfocusonoperationalimprovementsthatdirectlyaffectthepen-casingsline.Thecell-phonecasingsmanagerwouldgivestrongsupporttotheidea–thismaysavehis/herjob! Thepresidentwouldstronglysupportthisideawhileencouragingallmanagersinvolvedtokeepupthegoodwork.Also,notethatthenumbersagreewiththeinformalanalysis–generatingconfidenceintheintegrityofthecostaccountingsystem.Plant&Machinery$180,000

Engineers&CADEquip.$20,000

AllUnallocatedValueChainCosts$80,00080%

50%

20%

50%Activity$154,000[DirectLaborHours=4,500+1,000]

ProductionSupportActivity$46,000CostDriver[DistinctParts=5+11]DirectMaterials

DirectLaborforPen

DirectMaterials DirectLaborforPen

Casings

forCell

CellPhone$22,500

$135,000

Casings$24,000Casings$15,000

UNALLOCATEDSALES$360,000 SALES

$80,000Exhibit4-B4,PanelCProcessMapforABCSystemWORDWORD完美格式Exhibit4-B4:PanelDPRO-FORMAFINANCIALREPORTSFORLOPEZPLASTICSCOMPANY:ACTIVITY-BASEDCOSTALLOCATIONSYSTEMSTATEMENTOFOPERTINGINCOME CONTRIBUTIONTOCORPORATECOSTAND PROFIT[EXTERNALREPORTINGPURPOSE] [INTERNALSTRATEGICDECISIONMAKIANDOPERATIONAL-CONTROLPURPOSEPenCasings CellPhoSalesCostofgoodssold:$480,000SalesCostofgoodssold:$480,000$360,000Directmaterial46,50022,500Directlabor150,000135,000Processingactivity154,000126,0001Productionsupportactivity46,00014,375Productionsupportactivity46,00014,3753Costofgoodssold396,500297,875Grossprofit83,500$ 62,125$Corporateexpenses(unallocated)80,000Operatingloss$ 3,500Grossprofitmargin17.40%17.26%17$154,000 × [1,000laborhours/(4,500laborhours+1,000laborhours)]$46,000 × [5distinctparts/(5distinctparts+11distinctparts)]$46,000 × [11distinctparts/(5distinctparts+11distinctparts)]技术资料 专业整理WORDWORD完美格式技术资料 专业整理技术资料 专业整理3. Asvicepresident,youprobablyarepleasedwiththenewABCsystem.Thecostdriversthatareusedtoallocateactivitycostsappeartobeplausibleandreliableandthusprobablyrepresentasoundcause-effectmodelofoperations.Thiswillimproveboththeaccuracyofproductcostingandoperatingmanagers’controlovercosts.OperatingmanagerswillbepleasedwiththeABCsystembecauseithelpsthemunderstandhowtheirday-to-dayworkimpactscostsandprofits.Fromabehavioralperspective,thisshouldbehighlymotivational.Thisproblememphasizestheimportanceofthecost-accountingsystemtomanagers.Differentsystemscanresultinsignificantlydifferentmanagementdecisions.Inthiscase,theproduct-linemanagers’supportforthecontroller’sideachangeswhenanABCsystemisusedtoevaluatetheidea.Althoughthecompany-levelgrossmarginsdonotchange,itispossiblethatthepresidentwouldstronglysupporttheideabasedonABCdata.Why?Neitheroftheproduct-linemanagersisagainsttheidea,andonestronglysupportsit.Inaddition,thepresidentmayhavemoreconfidenceintheaccuracyoftheABCanalysis.Thesubstantiallossesofthecurrentquarterhavebeencompletelyeliminatedandtheseriousprofitabilityproblemofthecell-phonecasingproductlinehasbeenreversed.Acostmanagementsystemisacollectionoftoolsandtechniquesthatidentifieshowmanagement’sdecisionsaffectcosts.ThethreepurposesofaCMSaretoprovidecostinformationforoperationalcontrol,costinformationforstrategicdecisions,andmeasuresofinventoryvalueandcostofgoodsmanufactured(orpurchased)forexternalreportingtoinvestors,creditors,andexternalstakeholders.a.Theproductionmanagerneedsoperationalcontrolinformation.b.Settingtheproductmixisastrategicdecision.c.Thecostofinventorythatappearsonthebalancesheetisinformationthatisusedbyexternalinvestors,creditors,andotherstakeholders.Costobjectsareanyitemsforwhichdecisionmakersdesireaseparatemeasurementofcosts. Theyincludedepartments,products,services,territories,andcustomers.No. Productsareoneofthemaincostobjectsformostcompanies,butdepartmentsarealsoimportantcostobjectsbecausetheyrepresentalogicalgroupingofactivitiesforwhichmanagersdesireaseparatedeterminationofcosts.Themajorpurposeofadetailedcost-accountingsystemistomeasurecostsfordecisionmakingandfinancialreporting. Costaccountingbecomemoredetailedasmanagementseeksmoreaccuratedatafordecisionmaking.WORDWORD完美格式技术资料 专业整理技术资料 专业整理Thetwomajorprocessesperformedbyacostaccountingsystemarecostaccumulationandcostassignment. Costaccumulationiscollectingcostsbysome“natural”classification,suchasmaterialsorlabor,orbyactivitiesperformedsuchasorderprocessingormachineprocessing. Costassignmentattachingcoststooneormorecostobjects,suchasactivities,processes,departments,customers,orproducts.Managersmakeimportantdecisionsonadailybasis.Theybasethesedecisionsinlargepartonfinancialdataprovidedbythecostaccountingsystem. Soitiscriticallyimportantthatthecostaccountingsystemprovideaccurateandreliablefinancialinformation.Managerscanspecificallyandexclusivelyidentifydirectcostswithagivencostobject(thatis,directlytracethem)inaneconomicallyfeasibleway.Indirectcostscannotbesoidentified. However,managerscanusuallyidentifyaplausibleandreliablecostdrivertousetoallocateresourcecoststocostobjectsthatconsumetheresources. Whendirecttracingiseconomicallyfeasibleandaplausibleandreliablecostdrivercannotbefound,costsshouldremainunallocated.Yes,thesamecost(forexample,thedepartmentsupervisor'ssalary)canbedirectwithrespecttoadepartmentbutindirectwithrespecttothevarietyofproductsflowingthroughadepartment(e.g.,tables,chairs,cabinets).Somecostscanbephysicallylinkedwithadepartment(oraproduct),butnotinaneconomicallyfeasibleway. Anexampleistheuseofdepartmentalmetersformeasuringpowerusage. Suchdevicescouldmeasurepowercostsasdirectcostsofadepartment. Thealternativeistoregardfactorypowercostsasindirectcostsofindividualdepartments. Managersoftendecidewhethertheresultingincreasedaccuracyprovidedbyindividualpowermetersisworththeiradditionalcost;thus,thetestofeconomicfeasibilitywilldecidewhetheraparticularcostisregardedasdirectorindirect.Thefourpurposesofcostallocationare(1) topredicttheeconomiceffectsofstrategicandoperationalcontroldecisions,(2)toobtaindesiredmotivation,(3)tocomputeincomeandassetvaluations,and(4)tojustifycostsorobtainreimbursement.WORDWORD完美格式技术资料 专业整理技术资料 专业整理GenerallyAcceptedAccountingPrinciples(GAAP)requirepublically-heldcompaniestoallocateallproduction-relatedcostsandonlyproduction-relatedcoststoitsproductsforfinancialreportingtothepublic.No.Thecostsinacostpoolarenotphysicallytracedtocostobjects.Onlydirectcostsaretracedtocostobjects. Acostpoolcontainsindirectcoststhatareallocatedtocostobjectsusingasinglecost-allocationbase.Somepossibletermsarereallocate,assign,distribute,redistribute,load,apportion,reapportion,andburden.Forfinancialstatementpurposes,thetypicalaccountingsystemdoesnotallocatecostsassociatedwithvalue-chainfunctionsotherthanproductiontothephysical