管理会计（双语）atkinson6e-ppt-ch08 REVISED

1、 2012 Pearson Prentice Hall. All rights reserved.Measuring and ManagingLife-Cycle CostsChapter 8 1 2012 Pearson Prentice Hall. All rights reserved.Total-Life-CycleCostingTotal-life-cycle costing (TLCC) is the approach companies use to understand and manage all costs incurred in:Research, development

2、 and engineering cycleManufacturing cyclePost-sale service and disposal cycleAlso known as managing costs “from the cradle to the grave”2 2012 Pearson Prentice Hall. All rights reserved.Total-Life-CycleCosting Each part of a companys value chain is typically managed by a different organizational fun

3、ctionCompanies need a total-life-cycle perspective that integrates the tradeoffs and performance over time and across functional units3 2012 Pearson Prentice Hall. All rights reserved.Research, Development, and Engineering (RD&E) StageThe RD&E Stage has three substages:Market researchProduct designP

4、roduct developmentBy some estimates, 80% to 85% of a products total life costs are committed by decisions made in the RD&E stage of a products life4 2012 Pearson Prentice Hall. All rights reserved.Manufacturing StageThis stage offers little opportunity for engineering decisions to reduce costs since

5、 most costs have already been determined during the RD&E stageMethods to help improve product costs include:Product and process costingFacilities layoutKaizenBenchmarkingJust-in-time manufacturing5 2012 Pearson Prentice Hall. All rights reserved.Post-Sale Service and Disposal StageThe service stage

6、begins once the first unit of a product is in the hands of the customerDisposal occurs at the end of a products life and lasts until the customer retires the final unit of a productThe costs for service and disposal are committed in the RD&E stage6 2012 Pearson Prentice Hall. All rights reserved.The

7、 Service StageThe service stage typically consists of three substages:Rapid growthFrom the first time the product is shipped through the growth stage of its salesTransitionFrom the peak of sales to the peak in the service stageMaturityFrom the peak in the service stage to the time the last shipment

8、is made to a customer7 2012 Pearson Prentice Hall. All rights reserved.The Disposal StageDisposal occurs at the end of a products life and lasts until the customer retires the final unit of a productDisposal costs often include those associated with eliminating any harmful effects associated with th

9、e end of a products useful lifeProducts whose disposal could involve harmful effects to the environment, such as nuclear waste or toxic chemicals, often incur very high costs8 2012 Pearson Prentice Hall. All rights reserved.Life-Cycle CostsThe following table illustrates four types of products and t

10、he percentage of life-cycle costs incurred in each cycleCombatJetsCommercialAircraftNuclearMissilesComputerSoftwareRD&EManufacturingService and DisposalAverage Years in Life Cycle21%45%34%3020%40%40%2520%60%20%2 to 2575%*25%59 2012 Pearson Prentice Hall. All rights reserved.Target CostingAn approach

11、 that considers manufacturing costs early in the design decisionsHelps engineers design new products that meet customers expectations and that can be manufactured at a desired costAn important management accounting method for cost reduction during the design stage that helps manage total-life-cycle

12、costs10 2012 Pearson Prentice Hall. All rights reserved.The Traditional MethodBegins with market research into customer requirements followed by product specificationCompanies engage in product design and engineering and obtain prices from suppliersAfter the engineers and designers have determined p

13、roduct design, cost is estimated11 2012 Pearson Prentice Hall. All rights reserved.Target Costing MethodAlthough the initial steps appear similar to traditional costing, there are some notable differences:Marketing research is customer-drivenProject engineers attempt to design costs out of the produ

14、ct before design and development end and manufacturing beginsThe total-life-cycle concept is used by making it a key goal to minimize the cost of ownership of a product over its useful life12 2012 Pearson Prentice Hall. All rights reserved.Target Costing MethodEngineers set an allowable cost that en

15、ables the targeted product profit margin to be achieved at a price customers are willing to payThe target profit margin results from a long-run profit analysis, often based on return on sales The target cost is the difference between the target selling price and the target profit margin13 2012 Pears

16、on Prentice Hall. All rights reserved.Target Costing Method Once the total target cost has been set, the company must determine target costs for each componentThe value engineering process includes examination of each component of a product to determine whether it is possible to reduce costs while m

17、aintaining functionality and performanceSeveral iterations of value engineering are usually needed before the final target cost is achieved14 2012 Pearson Prentice Hall. All rights reserved.Target Costing Method Two other differences characterize the process:Throughout the entire process, cross-func

18、tional product teams made up of individuals representing the entire value chain guide the process Suppliers play a critical role in making target costing work15 2012 Pearson Prentice Hall. All rights reserved.Cost AnalysisCost analysis requires five sub-activities:1.Develop a list of product compone

19、nts and functions2.Perform a functional cost breakdown3.Determine the relative importance of customers requirements4.Relate features to functions5.Develop relative functional rankings16 2012 Pearson Prentice Hall. All rights reserved.Conduct Value EngineeringValue engineeringorganized effort directe

20、d at the various components for the purpose of achieving these functions at the lowest overall cost without reductions in required performance, reliability, maintainability, quality, safety, recyclability, and usability17 2012 Pearson Prentice Hall. All rights reserved.Conduct Value EngineeringTwo s

21、ub-activities: Identify components for cost reduction by computing a value index (ratio of the value to the customer and the percentage of total cost devoted to each component)Generate cost reduction and function enhancement ideas18 2012 Pearson Prentice Hall. All rights reserved.Concerns about Targ

22、et CostingLack of understanding of the target costing conceptPoor implementation of the teamwork conceptEmployee burnoutOverly long development time19 2012 Pearson Prentice Hall. All rights reserved.Break-Even Time (BET)BET measures the length of time from the projects beginning until the product ha

23、s been introduced and generates enough profit to pay back the investment originally made in its development20 2012 Pearson Prentice Hall. All rights reserved.Break-Even Time (BET)BET brings together in a single measurement three critical elements in an effective and efficient product development pro

24、cess:BET requires tracking the entire cost of the design and development process so that the company can recover its total investmentBET stresses profitability and encourages cross functional teamwork to meet the customer needsBET is denominated in time and encourages the launch of new products fast

25、er than the competition so that higher sales can be earned sooner to repay the product development investment21Innovation Measures on the Balanced ScorecardExamples of financial measures:Target costPercentage of sales from recently launched productsGross margins from new products 2012 Pearson Prenti

26、ce Hall. All rights reserved.22Innovation Measures on the Balanced ScorecardExamples of nonfinancial measures:Market Research and Generation of New Product IdeasNumber of new projects launched based on customer inputNumber of new value-added services identifiedDesign, Development, and Launch of New

27、ProductsNumber of patentsTotal RD&E time: from idea to market 2012 Pearson Prentice Hall. All rights reserved.23 2012 Pearson Prentice Hall. All rights reserved.Environmental CostingEnvironmental remediation, compliance, and management have become critical aspects of enlightened business practiceEnvironmental costing involves:Selecting suppliers whose philosophy and practices in dealing with the environment match the buyersDisposing of waste products du