F2 Chapter 05 Cost Classifying II

1、F2 Chapter 05 Cost Classifying IIACCAspaceProvided byACCA Research InstituteCopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台ACCA F2Management Accounting (MA)管理会计ACCA Lecturer: Belinda QiuCopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 2Part A7.3 Cost codingPurpose:? Assist precise informati

2、on? Facilitate data processing ? Facilitate logical arrangement of records ? Simplify comparison of similar expenses ? Incorporate checking of accuracy Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 3Part ASalesmans travel expense Wages of pressing department operatives1000 meters white cotton

3、 threadCleaning of stores department Production cost center Code Non-production center Code Pressing department 1 Selling & marketing department 3Cutting department 2 Store department 4Production labor 5 Non-production labor 7Production material 6 Non-production expense 837152648Copyright ? ACCA

4、ACCAspace 中国ACCA特许公认会计师教育平台 4Part A7.4 Analysis of costs into fixed and variable elements ? high/low method Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 5Part A7.4.1 steps of high/low method ? Select the highest and lowest activity levels and their relevant cost? Variable cost =(cos

5、t at high level-cost at low level)/(high level-low level )? fixed cost =total cost-total variable cost Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 6Part AExample : semi-variable 300 units for $2,160, 380 units for $2,320, 420 units for $2,400Vc=(2400-2160)/(420-300)=2Fc=2400-2*420=1560Copyr

6、ight ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 7Part AExample : stepped fixed cost Vc is constant ,a step up of 10% in the total fixed costs when the activity level exceeds 5,500 units .4000units 6000units 7500units $40,800 $50,000 $54,800Vc=(54800-50000)/(7500-6000)=$3.2/unitLevel >5500，fc=5480

7、0-3.2*7500=$30,800Level <=5500，fc=30800/110%=$28,000Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 8Part AExample :vc changes>350 units ,variable cost per unit falls by 10% (apply to all units )200units 300units 400units $7000 $8000 $8600<=350 units ,vc=(8000-7000)/(300-200)=$10/unitF

8、c=7000-200*10=$5000>350 units ,vc=10*90%=9Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 9Part A7.5 Cost objects, cost units and cost centers Cost objects: any activity for a which a separate measurement of cost is undertaken.(products ,product line ,customers ) Cost units: a unit of produc

9、t or service in relation to which costs are ascertained .(a room ,a unit of product ) Cost center: a production or service location, function, activity or item of equipment whose cost are identified and recorded.(a department ,a project )Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 10Part AR

10、evenue center: a center or activity that earns sales revenue and whose manager is responsible for the revenue earned but not the cost incurred.Profit center: whose manager is responsible for both cost and revenue.Investment center: whose manager is responsible for the investment decisions as well as

11、 the decisions affecting costs and revenue .Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 11Part ACopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 12Q1：The following diagram represents the behavior of one element of cost :Which of the following statement is consistent with the above diagr

12、am?Total cost $Level of activity Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 13A. Annual total cost of factory power where the supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption which is subject to a maximum annual charge.B. Total annual direct material

13、 cost where the supplier charges a constant amount per unit which then reduce to a lower amount per unit after a certain level of purchases.Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 14C. Total annual direct material cost where the supplier charges a constant amount per unit but when purch

14、ases exceed a certain level a lower amount per unit applies to all purchases in the year.D. Annual total cost of telephone services where the supplier makes a fixed charge and then a constant unit rate for calls up to a certain level. This rate can reduces for all calls above this level. DCopyright

15、? ACCAACCAspace 中国ACCA特许公认会计师教育平台 15Q2. Up to a given level of activity in each period the purchase price per unit of a raw material is constant. After that point a lower price per unit applies both to further units purchased and also retrospectively to all units already purchased.Which of

16、the following graphs is suitable for the cost ?A BDCDCopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 16Q3. A break-even chart for a company is depicted as follows:Which of the following statement is consistent with the above chart ?A. Both selling price per unit and variable cost per unit are c

17、onstant B. Selling price per unit is constant but variable cost per unit increases for sales over 4000units.C. variable cost per unit is constant but selling price per unit increases for sales over 4000units.D. selling price per unit increases for sales over 4000units and there is an increase in tot

18、al fixed cost at 4000units .ASales revenue Total cost Units $0 4000 Copyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 17Q4. A firm has to pay a $0.5 per unit royalty to the inventor of the device which it manufactures and sells. The royalty charge would be classified in the firms accounts as a :A

19、. Selling expense B. Direct expense C. Production overhead D. Administration overhead BCopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 18Q5. Belinda is the manager of production department M in a factory which has ten other production departments. She receives monthly information that compares

20、actual and planned expenditure for M. After M, all production goes into other factory to be completed prior to being dispatched to customers. Decisions involving capital expenditure in M are not taken by Belinda. Which is Belinda s role in M?A. A cost center manager B. An investment center manager C

21、. A profit center manager D. A revenue center manager ACopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 19Q6. the following statements relate to responsibilities centers:(1)Return on capital employed is a suitable measure of performance in both profit and investment centers.(2)Cost centers are f

22、ound in manufacturing organization but not in service organizations.(3)The manager of a revenue center is responsible for both salesman and costs in a part of an organization.which is correct ?A. 1 only B. 2 only C. 3 only D. None of them DCopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 20Q7. w

23、hich is correct ?A. Only direct production cost should be included in inventory valuation .B. All indirect cost should be treated as non-production cost.C. The sum of direct cost is called prime cost.D. Indirect costs per unit are always larger than direct costs per unit.CCopyright ? ACCAAC

24、CAspace 中国ACCA特许公认会计师教育平台 21Q8. which of the following shouldnt be included in the valuation of inventory in a manufacturing business?A. Depreciation on the plant and machinery.B. Salary of a salesman.C. Factory supervisor s salary D. Electricity of factory.BCopyright ? ACCAACCAspace 中国ACCA特许公认会计师教育平台 22Q9.Vc per unit is constant within the activity range and there is a step up of 10% in FC