cost-accounting英语教学课件

PartⅡ

CostandManagementAccountingChapter7CalculationandManagementofthecost

Thefull-costingapproach,asitiscalled,isverywidelyusedinpractice.Manybusinesssettheirsellingpricesbasedonfull-costinformation.Weshallseethattheactivity-basedcosting,whichisadevelopmentofthetraditionalfull-costingapproach.FeatureTopicChapterSkeletonDeducethefullcostofaunitofoutputinasingle-productenvironment.Distinguishbetweendirectandindirectcostsandusethisdistinctiontodeducethefullcostofajobinamulti-productenvironment.Discusstheproblemofchargingoverheadtojobsinamulti-productenvironment.Discussthenatureandpracticalitiesofactivity-basedcosting.Discusspricingmethodsandtheissuesinvolvedinreachingapricingdecisioninreal-worldsituations.7.1FullCostingWithfullcosting,weareconcernedwithallcostsinvolvedinachievingsomeobjective,suchasprovidingaparticularservice.Fullcostisthetotalamountofresources,usuallymeasuredinmonetaryterms,sacrificedtoachieveaparticularobjective.Toderivethefull-costfuture,wemustaccumulatethecostsincurredandthenassignthemtotheparticularproductorservice.7.2DerivingFullCostsDerivingfullcostsfromasingle-productoperationActivity7.1:page164Inpractice,however,itseemsthathistoriccotsaremoreoftenusedtodeducefullcosts.Theremayalsobeproblemsindecidingpreciselyhowmanyunitsofoutputtherewere.Workinprogressisusuallynotaseriousproblem,butsomeadjustmentforopeningandclosingworkinprogressforaparticularperiodneedstobemadeifreliablefull-costinformationistobeobtained.Theapproachtofullcostingdescribedabove,whichcanbetakenwithidentical,ornearlyidenticalunitsofoutput,isoftenreferredtoasprocesscosting.Mostbusinessproducemorethanonetypeofproductorservice.Inthissituation,theunitsofoutputoftheproduct,orservice,willnotbeidenticalandsotheapproachthatweusedwithlitersof“OrangeFizz”inactivity7.1cannotbeused.Derivingfullcostsfromasingle-productoperationAlthoughitisreasonabletoassignanidenticalcosttounitsofoutputthatareidentical;itisnotreasonabletodothiswhentheunitsforoutputareobviouslydifferent.Derivingfullcostsfromasingle-productoperationDirectandIndirectCostWhenunitsofoutputarenotidentical,thestartingpointistoseparatecostsintotwocategories:directcostsandindirectcosts.DirectCost1.Thesearethecoststhatcanbeidentifiedwithspecificunits.Thatistosay,theeffectofthecostcanbemeasuredwithrespecttoeachparticularunitofoutput.2.Example:directmaterialsanddirectlabor.IndirectCost(orOverhead)1.Theseareallothercosts,thatis,thosethatcannotbedirectlymeasuredwithrespecttoeachparticularunitofoutput.2.Overheadissometimesknownascommoncostsbecauseitiscommontoallproductionoftheproductionunit.DirectandIndirectCostJobCostingThistermisusedtodescribethewayinwhichweidentifythefullcostperunitofoutput(job)whentheunitsofoutputdifferincost.JobCostingFullcostoftheunitDirectcostsoftheunitFairshareofindirectcosts(overhead)Illustration7-1.TheRelationshipBetweenDirectandIndirectCostsThefullcostofanyparticularjobisthesumofthosecoststhatcanbemeasuredspecificallywithrespecttothejob,ordirectcosts,andashareofthosecoststhatcreatetheenvironmentinwhichproductionofanobjectorservicecantakeplace,butwhichdonotrelatespecificallytoanyparticularjob,overhead.JobCostingTheproblemofIndirectCostsDistinguishingbetweendirectanindirectcostsisrelatedonlytodeducingfullcostinajob-costingenvironmentwhenunitsofoutputdiffer.Indirectcostsofanyactivitymustformpartofthecostofeachunitofoutput.Bydefinition,however,theycannotbedirectlyrelatedtoindividualcostunits.Thisraiseamajorpracticalissue:Howareindirectcoststobeapportionedtoindividualcostunits?ChargingOverheadItisreasonabletoviewtheoverheadasrenderingaservicetothecostunits.Inpractice,timespentworkingontheunitcostofdirectlaboristhebasisthatismostpopular.Itmustbestressedthatthisisnotnecessarilythe“correct”way,anditcertainlyisnottheonlyway.Toseehowjobcostingworks,letusconsiderExample7.1:p167Overheadabsorption(recovery)rate,istherateatwhichindividualrepairswillbechargedwithoverhead.Direct-labor-hourmethod,inpractice,however,isseemstoberegardedasbeingthemostusefulmethod.Thenatureofoverheadshouldinfluencethechoiceofthebasisofchargingoverheadtojobs.Capital-intensive:machinebasedOtherwise:direct-laborhoursExample7.2:p169ChargingOverhead7.3Activity-BasedCostingAnalternativeapproachtofullcostingExample7.3:p170CostDriversRealizationthatoverheaddoesnotjoustoccur,butiscausedbyactivities—likeholdingproductsinstorage—that“drive”thecosts,isattheheartofactivity-basedcosting(ABC).Thetraditionalapproachisthatdirect-laborhoursathecostdriver.ThereisabasicphilosophicaldifferencebetweenthetraditionalandtheABCapproaches.AdoptingABCrequiresthatmostoverheadcanbeanalyzedandthecostdriversidentified.CostPoolsUnderABC,anoverheadcostpoolisestablishedforeachcostdriverinwhichallofthecostscausedbythatdriverareplaced.Thetotalcostsinthatpoolwouldthenbeallocatedtooutputaccordingtotheextenttowhicheachunitofoutput“drove”thosecosts,usingthecostdriveridentified.Example7.4:p172Traditionalvs.ABCWiththetraditionalapproach,overheadisapportionedtoproductdepartments.Eachdepartmentwouldthenderiveanoverheadrecoveryrate,typicallyoverheadperdirect-laborhour.Overheadwouldthenbeappliedtounitsofoutputaccordingtohowmanydirect-laborhourswereworkedonthem.WithABC,theoverheadisanalyzedintocostpools,withonecostpoolforeachcostdriver.Theoverheadisthenchargedtounitsofoutput,throughactivitycostdriverrates.Theseratesareanattempttorepresenttheextenttowhicheachparticularcostunitsisbelievedtocauseaparticularpartoftheoverhead.Illustration7-2:p173Traditionalvs.ABCOverheadisthenallocatedtocostunitsusinganoverheadrecoveryrateOverheadisfirstassignedtoproductcostcentersCostcenteroverheadrecoveryrate1ProductCostcenter1TotaloverheadProductCostcenter2ProductCostcenter3Costcenteroverheadrecoveryrate2CostcenterOverheadrecoveryrate3ProductsABCDOverheadsassignedtocostunitsusingcostdriverrateOverheadisarefirstassignedtoproductcostpoolsActivitycostdriverrate1ActivityCostcenter1TotaloverheadsActivityCostcenter2ActivityCostcenter3Activitycostdriverrate2Activitycostdriverrate2ProductsABCDABCandServiceIndustries

MuchofourdiscussionofABChasconcentratedonmanufacturingindustry.Infact,ABCispossiblyevenmorerelevanttoserviceindustries.ThereiscertainlyevidencethatABChasbeenadoptedmorereadilybybusinessesthatsellservicesratherthangoods.7.4CostandPricingFull-Cost(Cost-plus)PricingInsomeindustriesandcircumstances,fullcostsareusedasthebasisofpricing,Here,thefullcostisdeductedandapercentageisaddedforprofit.Thisisknownascost-pluspricing.Ifafull-cost(cost-plus)pricingapproachistobetakentheissuethatmustbeaddressedisthelevelofprofitthatisrequiredformeachunitsold.Anobviousproblemwithcost-pluspricingtakes