《成本与管理会计（英文）》课件-Chapter 5 The Analysis of Cost-Volume-Profit

Chapter5TheAnalysisofCost-Volume-ProfitCostandManagementAccountingLearningObjectives01Understandthebasicconceptsandassumptionsofcostvolumeprofitanalysis02Calculatethebreak-evenpointinsalesunitsusingthecostvolumeprofit(CVP)equationandprepareaCVPgraph03DescribethetargetnetprofitanalysisandusingCVPanalysisformanagementdecisionmakingPart1:TheConceptandAssumptionsofCVPChapter5TheanalysisofCost-Volume-ProfitCostandManagementAccountingTerminology:EnglishChineseCostVolumeProfit(CVP)本量利分析SalesVolume销售量Liner线性Constant不变的RelevantRange相关范围CostandManagementAccountingWhatiscostvolumeprofit(CVP)analysis?HowwillQantasAirlines’profitchangeifitdeletesanexistingflightontheSydneytoLosAngelesroutebecauseofrisingfuelcosts?HowwilltheAustralianBallet’sprofitchangeifthereisa10percentincreaseinthenumberofticketssoldforperformancesofSwanLake?CostandManagementAccountingWhatiscostvolumeprofit(CVP)analysis?

CVP:CostVolumeProfitDeterminestheeffectofchangesinanorganisation’ssalesvolume

onitscosts,revenueandprofitProvidesanswerstoaseriesofshort-termchanges–candeterminetheimpactonrevenueandcostsquicklyCanbeusedinbothprofitseekingandnot-for-profitorganisationsCostandManagementAccounting点击输入标题内容AssumptionsunderlyingCVPanalysis1.Thebehaviouroftotalrevenueislinear(astraightline).Thisimpliesthatthesellingpriceperunitoftheproductwillnotchangeassalesvolumevarieswithintherelevantrange.(a)Costscanbecategorisedasfixed,variableorsemivariable.Totalfixedcostsremainconstantasthesalesvolumechanges,andtheunitvariablecostremainsunchangedasthesalesvolumechanges.TotalCost/UnitVairableCostTheactivityoflevelCostandManagementAccounting点击输入标题内容AssumptionsunderlyingCVPanalysis(b)Labourproductivity,productiontechnologyandmarketconditionsdonotchange.Iftheseweretochange,thenwecouldnolongerassumethatcostswerelinearwithrespecttosalesvolume.(c)Therearenocapacityadditionsduringtheperiodunderconsideration.Thisensuresthattherearenoincreasesinfixedcosts,orchangesinvariablecostperunit.CostandManagementAccounting点击输入标题内容AssumptionsunderlyingCVPanalysis

2.Forbothvariableandfixedcosts,thesalesvolumeistheonlycostdriver.CostandManagementAccounting点击输入标题内容AssumptionsunderlyingCVPanalysis3.Inmultiproductorganisations,thesalesmixremainsconstantovertherelevantrangeSalesmix:TherelativesalesproportionsofeachtypeofproductsoldbytheorganisationCostandManagementAccounting点击输入标题内容AssumptionsunderlyingCVPanalysis4.Inmanufacturingfirms,thelevelsofallinventoryatthebeginningandendoftheperiodarethesame.ThisimpliesthatthenumberofunitsproducedduringtheperiodequalsthenumberofunitssoldQuickCheckCostandManagementAccountingCostvolumeprofit(CVP)analysisisbasedonanumberoflimitingassumptions.WhichofthefollowingisnotoneoftheassumptionsoftheCVPmodel?A.Productionunitsequalsalesunitsovertheperiod.B.Ifthefirmhasaproductmix,themixremainsconstant.C.Costbehaviourislinearovertherelevantrange.D.CVPanalysisonlyappliestoasingle-productfirm.QuickCheckCostandManagementAccountingTheconceptofcostvolumeprofitanalysisisbasedonclassifyingcostsas?A.Fixedandvariablecosts.B.Variablecostsandperiodcosts.C.ProductcontrollableanduncontrollablecostsD.FixedandvariablecostsANDvariablecostsandperiodcosts.CostandManagementAccountingSummary:CVPAnalysisWhatisCVPanalysis:atechniqueusedtodeterminetheeffectsofchangesinanorganisation’ssalesvolumeonitscosts,revenueandprofitAssumptions:ThebehaviouroftotalrevenueislinearSellingpriceisconstantThesalesmixisconstantUnitsproducedequalstoUnitssoldPart2:TheAnalysisofCVPChapter5TheAnalysisofCost-Volume-ProfitCostandManagementAccountingTerminology:

EnglishChineseSalesvolume销售量Contributionmargin边际贡献Unitcontributionmargin单位边际贡献Thebreak-evenpoint盈亏临界点CostandManagementAccountingTheAnalysisofCVPTheprofitmodelofacompanyThebreak-evenpointThetargetprofitanalysisandsafetymarginUsingCVPanalysisformanagementdecisionmakingTheAnalysisofCVPCostandManagementAccountingToillustratethevariousanalyticaltechniquesusedinCVPanalysis,wewillfocusonaperformingartsorganisation.TheMelbourneTheatreCompany(MTC)istheoldestprofessionaltheatrecompanyinAustralia.TheprofitmodelofacompanyCostandManagementAccountingTheprofitmodelofacompany

TheMelbourneTheatreCompany(MTC)RevenueperticketPrice$90.00VariablecostsperticketRoyalties$17.00Theatrerental14.50$31.50FixedcostsoftheplayCreative:Director$27000Stagedesigner22500Lightingdesigner11250Extraartisticstaff14250Actors359100Pre-production:Setsandprops$30000Wardrobe22500Freight15000Stagemanagement42000Setupanddemolishstage18000$561600CostandManagementAccountingTheprofitmodelofacompanyProfit=Salesrevenue-variablecost-fixedcostProfit=Sellingprice×Salesvolume-Unitvariablecost×salesvolume-FixedcostContributionmargin=SP×V-VC×V=(SP-VC)×V=UCM×VUnitcontributionmargin=SP-VCCMR=CM/(SP×V)QuickCheckCostandManagementAccountingThecontributionmarginperunitiscalculatedasthedifferencebetween?A.salesrevenueperunitandfixedcostperunit.B.salesrevenueperunitandvariablecostperunit.C.

salesrevenueperunitandproductcostperunit.D.

fixedcostperunitandvariablecostperunit.CostandManagementAccounting点击输入标题内容Thebreak-evenpointAsthefirststepintheCVPanalysisfortheMelbourneTheatreCompany,wewillfindthebreak-evenpointfortheplayCalypso.Thebreak-evenpointisthevolumeofsalesatwhichthetotalrevenuesandcostsareequal.Atthislevelofsales,thereisnoprofitorloss;theoperationbreakseven.CostandManagementAccounting点击输入标题内容Thebreak-evenpoint

TheBreak-evenPointFormula:Calypsowillbreakevenwhentherevenuefromticketsalesisequaltothetotalcostofstagingtheplay.

Profitcanbecalculatedassalesrevenueminuscosts,andthattheseexpensesconsistofvariableandfixedcosts:

Salesrevenue−variablecosts−fixedcosts=profitCostandManagementAccounting点击输入标题内容Thebreak-evenpointSalesvolumeinunits×(unitsalesprice－unitvariablecost)－fixedcost=0(unitsalesprice×salesvolumeinunits)－(unitvariablecost×salesvolumeinunits)－fixedcost=profitBreak-evenpoint(inunits)=Break-evenpoint(indollars)=fixedcostsunitcontributionmarginfixedcostscontributionmarginratioCostandManagementAccounting点击输入标题内容Thebreak-evenpoint

Wecancheckthisanswerbyconstructinganincomestatementfortheplay,forsalesof9600tickets:Appplyingthedatafortheplay,thebreak-evenpointcanbecalculated:Break-evenpoint(inunits)=

=

=9600unitsfixedcostsunitcontributionmargin$58.50$561600Salesrevenue(9600×$90)$864000Variablecosts(9600×$31.50)302400Totalcontributionmargin$561600Fixedcostsoftheplay561600Profitfromtheplay$ 0CostandManagementAccountingThebreak-evenpointSometimesmanagementpreferstocalculatethebreak-evenpointinsalesdollarsratherthanunits.Thebreak-evenpointfortheplayinsalesdollarsiscalculatedasfollowsThereisalsoaformulafordeterminingthebreak-evenpointinsalesdollarsBreak-evenpoint(indollars)=

=

=$864000fixedcostsunitcontributionmargin÷unitsalesprice$56160058.50÷90Break-evenpointinunits(tickets)9600Salespriceperunit×$90Break-evenpointinsalesdollars$864000CostandManagementAccountingGraphingcostvolumeprofitrelationshipsWhilethebreak-evenpointmayconveyusefulinformationtomanagement,itdoesnotshowhowcosts,revenueorprofitschangeassalesvolumechanges.Toillustratetheserelationships,acostvolumeprofit(CVP)graphmaybeused.ThestepsbelowareusedtoprepareaCVPgraphfortheplayCalypso.Stepone:Drawtheaxesofthegraph.Steptwo:Drawthefixedcostline.Stepthree:DrawthetotalcostlineStepfour:Drawthetotalrevenueline.Stepfive:Findthebreak-evenpoint.

CostandManagementAccountingGraphingcostvolumeprofitrelationshipsThebreak-evenpointinunits,andinsalesdollars,canbedeterminedbythecoordinatesofthepointattheintersectionofthetotalrevenuelineandthetotalcostline.ProfitandlossareasQuickCheckCostandManagementAccountingThebreak-evenpointisthatlevelofactivitywhere?A.totalrevenueequalstotalcost.B.totalrevenueequalsfixedcost.C.

totalrevenueequalsvariablecost.D.

totalrevenueequalsproductcost.CostandManagementAccountingSummary:TheAnalysisofCVPTheprofitmodelofacompany:profit=Salesrevenue−variablecosts−fixedcostsProfit=Sellingprice×Salesvolume-Unitvairablecost×salesvolume-FixedcostThebreak-evenpoint:Part3:TheTargetProfitAnalysisChapter5TheAnalysisofCost-Volume-ProfitCostandManagementAccountingTerminology:EnglishChineseTargetnetprofit目标利润Safetymargin安全边际Change变动Decisionmaking做决策CostandManagementAccountingThetargetprofitanalysis

TheMelbourneTheatreCompany(MTC)RevenueperticketPrice$90.00VariablecostsperticketRoyalties$17.00Theatrerental14.50$31.50FixedcostsoftheplayCreative:Director$27000Stagedesigner22500Lightingdesigner11250Extraartisticstaff14250Actors359100Pre-production:Setsandprops$30000Wardrobe22500Freight15000Stagemanagement42000Setupanddemolishstage18000$561600CostandManagementAccountingThetargetprofitanalysis

AssumetheboardofmanagementoftheMTCwouldliketorunaseriesoffreeworkshopsforyoungactorsandaspiringplaywrights,butitisonlywillingtodothisifitcangeneratesufficientprofitsfromtheplaytocoverthecostsoftheworkshops:teachers’salariesandrentalofspaceatalocalcollege.

IftheMTCmakesasurplusof$63000fromtheplay,thentheworkshopcanbeheld.Theboardhasaskedthefinancedirectortodeterminehowmanytheatreticketsmustbesoldduringtheplay’sruntomake

atargetnetprofitof$63000CostandManagementAccountingThetargetprofitanalysis

Thebreak-evenpointformulacanbeusedtodeterminethesalesunitsorsalesrevenuerequiredtoachieveatargetnetprofitAtargetnetprofitisadesiredprofitleveldeterminedbymanagementCostandManagementAccountingThetargetprofitanalysis

Modifyingthebreak-evenformular:

Targetnetprofit(inunits)

=

Targetnetprofit(in$)=fixedcosts+targetnetprofitunitcontributionmarginfixedcosts+targetnetprofitunitcontributionmarginratio

Salesvolumerequiredtoearnnetprofitaftertax:fixedcosts+Targetnetprofitaftertax

(1–t)unitcontributionmarginratioCostandManagementAccountingThetargetprofitanalysis

Targetnetprofit(inunits)=

=fixedcosts+targetnetprofitunitcontributionmargin

Targetnetprofit(indollars)=unitcontributionmarginratio$561600+$63000$58.50=10677tickets(rounded)fixedcosts+targetnetprofit=$561600+$63000$0.65=96092.3tickets(rounded)CostandManagementAccounting点击输入标题内容UsingCVPanalysisformanagementdecisionmakingSafetymarginThesafetymarginofanenterpriseisthedifferencebetweenthebudgetedsalesrevenueandthebreak-evensalesrevenue.ThemarketingmanageroftheMTCexpects80percentofallseatstobesoldfortheplayCalypsoThebudgetedsalesrevenueis$876960(348seats×35performancesoftheplay×0.80×$90perticket).Sincebreak-evensalesrevenueis$864000,theorganisation’ssafetymarginis$12960($876960–$864000).Thesafetymargingivesmanagementafeelforhowcloseprojectedoperationsaretothebreak-evenpoint.CostandManagementAccounting点击输入标题内容UsingCVPanalysisformanagementdecisionmaking

ChangeinfixedcostWhatwouldhappentothebreak-evenpointifestimatesoffixedcostschanged?InthecaseoftheplayCalypso,supposethattheinitialestimateforsettingupanddemolishingthestage,$18000,isnowconsideredtoolow.Thebreak-evencalculationsbasedonboththeoriginalandthenewestimateoffixedcostsareasfollows:OriginalestimateNewestimateSetupanddemolishstage$18000$54000Totalfixedcosts$561600$597600Break-evencalculation$561600$58.50$597600$58.50Break-evenpoint(units)9600tickets10215tickets(rounded)Break-evenpoint(dollars)$864000$919350*CostandManagementAccounting点击输入标题内容UsingCVPanalysisformanagementdecisionmakingChangeinvariablecostsperunitIfthevariablecostsperticketfortheplayincreasefrom$31.50to$37.12becauseoftheincreasedcostofrentingthetheatre,theunitcontributionmarginwillfallfrom$58.50to$52.88.Theoriginalandnewbreak-evenpointsarecalculatedasfollows:OriginalestimateNewestimateVariablecostsperticket$31.50$37.12Unitcontributionmarginperticket$58.50$52.88Break-evencalculation$561600$561600

$58.50$52.88Break-evenpoint(units)9600tickets10620tickets(rounded)Break-evenpoint(dollars)$864000$955800**or$955752basedonacontributionmarginratioof0.5876.

CostandManagementAccounting点击输入标题内容UsingCVPanalysisformanagementdecisionmakingChangeinsalespriceSupposethemanagementoftheMTCraisestheticketpricefrom$90to$99perseatThischangewillincreasetheunitcontributionmarginfrom$58.50to$67.50A$9increaseintheticketpricewilllowerthebreak-evenpointfrom9600ticketsto8320tickets($561600÷$67.50).CostandManagementAccounting点击输入标题内容Management’sdecisionabouttheticketpriceincreasewillalsobeinfluencedbythevaluesandmissionoftheMTCThelowertheticketprice,themoreaccessiblearethetheatre’sproductionstopeopleofallincomelevels.AnincreaseinticketpricemayconflictwiththeoverallmissionofthecompanyWhileCVPanalysisprovidesvaluableinformation,itisonlyoneofseveralelementsthatwillinfluencemanagement’sdecisionsUsingCVPanalysisformanagementdecisionmakingCostandManagementAccounting点击输入标题内容UsingCVPanalysisformanagementdecisionmakingMultiplechangesinkeyvarablesTicketpricesfrom$90to$81perseatThecampaignwillcost$23400andincreasethefixedcoststo$585000Theseactionsareexpectedtoincreaseticketsalesfrom9744to12500fortheplayUnitcontributionmargindecreasedfrom$58.50to$49.50perunit01Salesvolumeincreasedby2756tickets02Fixedcostsoftheplayincreasedby$23400.03CostandManagementAccounting点击输入标题内容UsingCVPanalysisformanagementdecisionmakingCVPanalysiswithmultipleproductsSalesmix:TherelativesalesproportionsofeachtypeofproductsoldbytheorganisationWeigh