本科会计专业英语教案Chapter 10

(本科）会计专业英语教案Chapter10(本科）会计专业英语教案Chapter10(本科）会计专业英语教案Chapter10教学目标知识目标：Explainthedefinition

ofcostUnderstandthedifferentofallkindsofcost能力目标：Usehigh-lowanalysistoseparatethefixedandvariableelementsoftotalcostsExplainthestructureoflinearfunctionsandequations.素质目标：Calculateprofitorlossbyusingvariablecostingandabsorptioncosting教学重点UnderstandthedifferentofallkindsofcostUsehigh-lowanalysistoseparatethefixedandvariableelementsoftotalcosts教学难点Calculateprofitorlossbyusingvariablecostingandabsorptioncosting教学手段结合理论与案例小组讨论教学学时2课时教学内容与教学过程设计注释Chapter10CostBehaviorAnalysis〖理论知识〗Topic1:CostClassification1.GeneralCostClassifications(1)ManufacturingCostDirectmaterialDirectmaterialisallofthephysicalitemsbuiltintoaproduct.Itisrolledintothetotalcostofgoodsproduced,whichisthensubdividedintothecostofgoodssold(whichappearsintheincomestatement)andendinginventory(whichappearsinthebalancesheet).Acompanymaybuydirectmaterialsfromsuppliers,createthemon-site,orbuythemfromitsownsubsidiaries.DirectLaborDirectlaborisproductionorserviceslaborthatisassignedtoaspecificproduct,costcenter,orworkorder.Whenabusinessmanufacturesproducts,directlaborisconsideredtobethelaboroftheproductioncrewthatproducesgoods,suchasmachineoperators,assemblylineoperators,painters,andsoforth.Whenabusinessprovidesservices,directlaborisconsideredtobethelaborofthosepeoplewhoprovideservicesdirectlytocustomers,suchasconsultantsandlawyers.Generally,apersonwhoischargingbillabletimetoacustomerisworkingdirectlaborhours.ManufacturingOverheadManufacturingoverhead,thethirdelementofmanufacturingcostincludesallcostsofmanufacturingexceptdirectmaterialsanddirectlabor.Manufacturingoverheadincludesitemssuchasindirectmaterials;indirectlabor;maintenanceandrepairsonproductionequipment;heatandlight,propertytaxes,depreciation,andinsuranceonmanfracturingfacilities.Acompanyalsoincurscostsforheatandlightpropertytaxes,insurance,depreciationandsoforthassociatedwithitssellingandadministrativefunctions,butthesecostsarenotincludedaspartofmanufacturingoverhead.Onlythosecostsassociatedwithoperatingthefactoryareincludedinmanufacturingoverhead.Acrosslargenumbersofmanufacturingcompanies,manufacturingoverheadaveragesabout16%ofsalesrevenues.（2）NonmanufacturingCostsNonmanufacturingcostsareoftendividedintotwocategories:sellingcostsandadministrativecosts.Sellingcostsincludeallcoststhatareincurredtosecurecustomerordersandgetthefinishedproducttothecustomer.Examplesofsellingcostsincludeadvertising,shipping,salestravel,salescommissions,salessalaries,andcostsoffinishedgoodswarehouses.2.ProductCostsandPeriodCosts(1)ProductCostProductcostreferstothecostsusedtocreateaproduct.Thesecostsincludedirectlabor,directmaterials,consumableproductionsupplies,andfactoryoverhead.Productcostcanalsobeconsideredthecostofthelaborrequiredtodeliveraservicetoacustomer.Inthelattercase,productcostshouldincludeallcostsrelatedtoaservice,suchascompensation,payrolltaxes,andemployeebenefits.Thecostofaproductonaunitbasisistypicallyderivedbycompilingthecostsassociatedwithabatchofunitsthatwereproducedasagroup,anddividingbythenumberofunitsmanufactured.Thecalculationis:(Totaldirectlabor+Totaldirectmaterials+Consumablesupplies+Totalallocatedoverhead)/Totalnumberofunits=Productunitcost(2)PeriodCostAperiodcostisanycostthatcannotbecapitalizedintoprepaidexpenses,inventory,orfixedassets.Aperiodcostismorecloselyassociatedwiththepassageoftimethanwithatransactionalevent.Sinceaperiodcostisessentiallyalwayschargedtoexpenseatonce,itmaymoreappropriatelybecalledaperiodexpense.Thistypeofcostisnotincludedwithinthecostofgoodssoldontheincomestatement.Instead,itistypicallyincludedwithinthesellingandadministrativeexpensessectionoftheincomestatement.Examplesofperiodcostsare:sellingexpenses;advertisingexpenses;travelandentertainmentexpenses.3.CostClassificationsforPredictingCostBehavior(1)VariableCostVariablecostisacostthatvariesinrelationtochangesinthevolumeofactivity.Thevariablecostconceptcanbeusedtomodelthefuturefinancialperformanceofabusiness,aswellastosetminimumpricepoints.Themostcommonvariablecostsare:Directmaterials:sincethecostofmaterialsarechargedtoexpensewhentheassociatedproductsaresold.Commissions:sincethesalesstaffearnscommissionswhensalestransactionsarecompleted.Billablelabor:sincewagesassociatedwithbillablehoursarechargedtoexpensewhentheassociatedsalestransactionsarecompleted.Pieceratelabor:whereemployeesarepaidbasedonthenumberofunitsproduced.Creditcardfees:whereafeeisnotincurredunlessacustomerusesacreditcardtopayforapurchase.Tocalculatetotalvariablecosts,theformulais:Totalquantityofunitsproduced×Variablecostperunit=Totalvariablecost(2)FixedCostAfixedcostisacostthatdoesnotvaryintheshortterm,irrespectiveofchangesinproductionorsaleslevels,orothermeasuresofactivity.Afixedcostisabasicoperatingexpenseofabusinessthatcannotbeavoided,suchasarentpayment.Theconceptisusedinfinancialanalysistofindthebreakevenpointofabusiness,aswellastodetermineproductpricing.4.CostClassificationforAssigningCoststoCostObjects(1)DirectCostAdirectcostisacostthatcanbeclearlyassociatedwithspecificactivitiesorproducts.Thesecostsarecommonlyusedinincrementaldecisionmaking,wherethesalesmanagerneedstoknowthedirectcostofaproductinordertoensurethataone-timesaletransactioncanbemadeatapricethatexceedsthetotalofalldirectcosts.(2)IndirectCostIndirectcostsarecoststhatarenotdirectlyassociatedwithasingleactivity,event,orothercostobject.Suchcostsarefrequentlyaggregatedintoanoverheadcostpoolandallocatedtovariousactivities,basedonanallocationmethodthathasaperceivedoractuallinkagebetweentheindirectcostandtheactivity.5.CostClassificationsforDecisionMarking(1)DifferentialCostandRevenueDifferentialcostisthedifferencebetweenthecostoftwoalternativedecisions,orofachangeinoutputlevels.Theconceptisusedwhentherearemultiplepossibleoptionstopursue,andachoicemustbemadetoselectoneoptionanddroptheothers.Theconceptcanbeparticularlyusefulinstepcostingsituations,whereproducingoneadditionalunitofoutputmayrequireasubstantialadditionalcost.Differentialrevenueisthedifferenceinsalesthatwillbegeneratedbytwodifferentcoursesofaction.Theconceptiscommonlyusedwhenevaluatingwhichoftwo(ormore)investmentstomakeinabusiness.Thefallacyinusingthedifferentialrevenueconceptisthatitpaysnoattentiontothedifferentialprofitorcashflowsgeneratedbythevariousdecisions.Profitsorcashflowsarevastlymoreimportantthanrevenue,sincetheycontributetothefinancialhealthofabusiness.(2)OpportunityCostOpportunitycostisthecostofnotselectingthenextbestchoicewheninvestingresourcesinanactivity.Opportunitycostcanbeusedtoweighthemeritsofvariouscapitalinvestmentopportunities.Forexample,youhave$1,000,000andchoosetoinvestitinaproductlinethatwillgenerateareturnof5%.Ifyoucouldhavespentthemoneyonadifferentinvestmentthatwouldhavegeneratedareturnof7%,thenthe2%differencebetweenthetwoalternativesistheforegoneopportunitycostofthisdecision.(3)SunkCostAsunkcostisacostthatanentityhasincurred,andwhichitcannolongerrecoverbyanymeans.Topic2:CostBehaviorCostbehaviorreferstothesensitivityoftotalcostsofactivityinputstochangesinthelevelsofactivityoutput(activityvolume).Heretheactivityoutput(volumemaybemeasuredintermsofunitsofproductionorsales,hoursworked,milestraveled,patientsseenstudentsenrolledoranyotherappropriatemeasureoftheactivityofanorganization.therangeofoutputorsalesoverwhichcostbehaviorpatternsremainunchangediscalledtherelevantrange.1.VariableCostVariablecostswerediscussedbrieflyintopic1.Wewillsummarizethatdiscussionherebyusingtheexampleoftastydonuts.Example10-1Tastydonuts'directmaterialcostisavariablecost.Asthecompanysellsmoredonutsmuffinsandsweetrolls,thetotalcostoftheingredientsforthesegoodsincreasesindirectproportiontothenumberofitemssold.Moreover,thequantitiesofbeveragessoldandpaperproductsusedbycustomersalsoincreaseindirectproportiontothenumberofbakeryitemssold.Asaresult,thecostsofbeveragesandpaperproductsarealsovariablecosts.Exhibit10-1displaysagraphoftastydonutsdirect-materialcost.Asthegraphshows,totalvariablecostincreasesinproportiontotheactivitylevel(orcostdriver).Whenactivitytriples,forexample,from50,000dozenitemsto150,000dozenitems,totaldirect-materialcostswilltriplefrom$55,000to$165,000.However,thevariablecostperunitremainsthesameasactivitychanges.Thetotaldirect-materialcostincurredperdozenitemssoldisconstantat$1.1perdozen.Theexhibit10-2illustratesthispoint.Thevariablecostperunitalsoisrepresentedinthegraphinpanel1ofexhibit10-lastheslopeofthecostline.Tosummarize,asactivitychanges,totalvariablecostincreasesindirectproportiontothechangeinactivitylevel,butthevariablecostperunitremainsconstant.Exhibit10-1GraphofTotalDirect-MaterialCostTotaldirect-materialcost(foodingredients,beverages,paperproducts)Slopisvariablecostperunitofactivity,$1.10perdozenbakeryitemsSlopisvariablecostperunitofactivity,$1.10perdozenbakeryitems$165,000$110,00$55,00000$50,0000$100,0000$150,0000Exhibit10-2TabulationofDirect-MaterialCostActivity(orcostdirect)Direct-MaterialCostperDozenBakeryItemsSoldTotalDirect-MaterialCost50,000$1.10$55,000100,0001.10110,000150,0001.10165,0002.FixedCostFixedcostsarecostsincurredforaperiodoftime,whichareconstantintotalovertherelevantrange.Fixedcostsincludethingslikerent,insurancepremiums,depressofthefactorybuilding,supervisors’salaries,leasingchargesforcarsusedbythesalesforce,andpropertytaxes.Example10-2XCompanyexampleabove,ifthenumberofchairsproduceddoubles,thedepreciationofthefactorybuildingdonotchange.Saythedepreciationis$50,000foronemonth,andtherelevantrangeisfrom0to5,000chairs,thenthedepreciationchargeperchairfordifferentunitswillbeasfollows:NumberofchairsproducedDepreciationchargeperchair1$50，000105，000100500100050200025Fixedcostcanberepresentedbyalinearequationasbelow:F=totalvariablecostInourexampleforXCompany,therelationshipthatdescribesthetotaldepreciationoffactorybuildingisF=$50,000Thegraphoffixedcostisalsoastraightline,itdoesn’tchangewithvolumeoractivity.Exhibit10-3illustratesfixedcostbehavior:Exhibit10-3FixedCostBehaviorTTotalfixedcostLevelofactivityCost3.MixedCostAlthoughhereareseveralcostswhichareeitherpurelyvariableorpurelyfixedmanycostsaremixedorsemi-variable.Theutilityhasbothafixedandavariablecomponent,suchastelephoneandelectricityoftenhaveafixedcostelementsuchaslinerentalorastandingchargewhichhastobepaidirrespectiveofusage.Inaddition,thereisalsoacostperunitused.Thosecoststhatcontainbothfixedelementandvariableelementsarecalledmixedcostsorsemi-variablecosts.Example10-3Wealsousetheexampleoftastydonuts.Thecostofoperatingdeliverytrucksisasemi-variablecostfortastydonuts,Inc.Thesecostsaregraphedinexhibit10-4.Asthegraphshows,thecompany’sdelivery-truckcostshavetwocomponents.Thefixed-costcomponentis$3,000permonth,whichisthemonthlyrentalpaymentpaidundertheleasecontractforthedeliverytrucks.Themonthlyrentalpaymentisconstant,regardlessofthelevelofactivity(orcostdriver).Thevariable-costcomponentconsistsofthecostsofgasoline,oil,routinemaintenance,andtires.Thesecostsvarywithactivity,sincegreateractivitylevelsresultinmoredeliveries.Thedistancebetweenthefixed-costline(dashedline)andthetotal-costlineinexhibit10-4istheamountofvariablecost.Forexample,atanactivitylevelof100,000dozenbakeryitems,thetotalvariable-costcomponentis$10,000.Theslopeofthetotal-costlineisthevariablecostperunitofactivity.FortastyDonuts,thevariablecostofoperatingitsdeliverytrucksis$10perdozenbakeryitemssold.Exhibit10-4CostanalysisTotalcostofOperatingdeliverytrucksTotalcostofOperatingdeliverytrucksActivity,orcostdriver(dozensofbakeryitemssoldpermonth)SlopeisvariablecostPerunitofactivity,$.10perdozenbakeryitemsVariablecostComponentTotalcostlineFixedcostcomponent50,000100,000150,000$3,000$10,000$20,000Thereareavarietyofproceduresthatcanbeusedtoseparatethefixedandvariablecomponents.Themostwidelyusedmethodsincludingthehigh-lowmethod,thescattergraphsmethodandtheregressionanalysismethod.(1)TheHigh-lowMethodInthehigh-lowmethodthesemivariable-costapproximationiscomputedusingexactlytwodatapoints.Thehighandlowactivitylevelsarechosenfromtheavailabledataset.Followthestepsbelowtoestimatethefixedandvariableelementsofsemi-variablecosts:Reviewrecordsofcostsinpreviousperiods:Selecttheperiodwiththehighestactivitylevel.Selecttheperiodwiththelowestactivitylevel.Determinethefollowing:TotalcostathighactivitylevelTotalcostatlowactivitylevelTotalunitsathighactivitylevelTotalunitsatlowactivitylevelCalculatethefollowing:TTotalcostathighactivitylevel－totalcostatlevelactivitylevelTotalunitathighactivitylevel－totalunitatlevelactivitylevelVariablecost=perunit（2）ScatterGraphMethodOneoftheclearestwaysofpresentingtherelationshipbetweentwovariablesisbyplottingalinearequationasastraightlineonagraph.Agraphhasahorizontalaxis,thexaxis;andaverticalaxis,theyaxis.Thexaxisisusedtorepresenttheindependentvariableandtheyaxisisusedtorepresentthedependentvariable.Ifcalendartimeisonevariable,itisalwaystreatedastheindependentvariable.(3)RegressAnalysisMethodLeast-SquaresRegressMethodIntheleast-squaresregressionmethod,thecostlineispositionedsoastominimizethesumofthesquareddeviationsbetweenthecostlineandthedatapoints.Notethatthedeviationsbetweenthecostlineandthedatapointsaremeasuredverticallyonthegraphratherthanperpendiculartotheline.Thecostlinefittothedatausingleast-squaresregressioniscalledaleast-squaresregressionline(orsimplyaregressionline)Y=a+bXYisthedependentvariablewhosevaluedependsonthevalueofx;Xistheindependentvariablewhosevaluehelpstodeterminethecorrespondingvalueofy;aisaconstant;thatis,afixedamount;bisalsoaconstant,beingthecoefficientofx(thatis,thenumberbywhichthevalueofxshouldbemultipliedtoderivethevalueofy).Usingtheleast-squaresregressionmethodforthebest-fittinglineisgivenbelow:b=[na=(Inordertocomputebanda,fiveinputsareneeded:n,x,y,MultipleRegressHowever,theremaybetwoormoreindependentvariablesthatareimportantpredictorsofcostbehavior.Multipleregressionisastatisticalmethodthatestimatesalinearstraightline)relationshipbetweenonedependentvariableandtwoormoreindependentvariables.Multipleregressionisastatisticalmethodthatestimatesalinear(straightline)relationshipbetweenonedependentvariableandtwoormoreindependentvariables.ThefollowingregressionequationwouldbeestimatedY=a+b1WhereYdenotesthedependentvariable,utilitiescostx1denotesthefirstindepenx2denotesadenotestheregressionestimateofthefixed-costcomponentb1b2denotestheregressionestimateofthevariableutilitiescostpercustomerserveAsimpleregressionisbasedonasingleindependent-variable.MultipleregressioniscoveredmoreextensivelyincostaccountingandstatisticstextsTopic3：VariableCostingandAbsorptionCosting1.VariableCostingVariablecostingisanalternativemethodofcostingtoabsorptioncosting.Invariablecosting,onlyvariablecostsarechargedasacostofsaleandacontributioniscalculated(salesrevenueminusvariablecostofsales).Closinginventoriesofworkinprogressorfinishedgoodsarevaluedatmarginal(variable)productioncost.Fixedcostsaretreatedasaperiodcost,andarechargedinfulltotheprofitandlossaccountoftheaccountingperiodinwhichtheyareincurred.Themarginalproductioncostperunitofanitemusuallyconsistsofthefollowing:direct-materials,variableproductionoverheads,directlabor.Theprinciplesofvariablecostingareasfollows:Periodfixedcostsarethesame,foranyvolumeofsalesandproduction(providedthatthelevelofactivityiswithinthe'relevantrange').Therefore,bysellinganextraitemofproductorservicethefollowingwillhappen:Revenuewillincreasebythesalesvalueoftheitemsold.Costswillincreasebythevariablecostperunit.Profitwillincreasebytheamountofcontributionearnedfromtheextraitem.Similarly,ifthevolumeofsalesfallsbyoneitem,theprofitwillfallbytheamountofcontributionearnedfromtheitem.Profitmeasurementshouldthereforebebasedonananalysisoftotalcontribution.Sincefixedcostsrelatetoaperiodoftime,anddonotchangewithincreasesordecreasesinsalesvolume,itismisleadingtochargeunitsofsalewithashareoffixedcosts.Absorptioncostingisthereforemisleading,anditismoreappropriatetodeductfixedcostsfromtotalcontributionfortheperiodtoderiveaprofitfigure.Whenaunitofproductismade,theextracostsincurredinitsmanufacturearethevariableproductioncosts.Fixedcostsareunaffected,andnoextrafixedcostsareincurredwhenoutputisincreased.Itisthereforearguedthatthevaluationofclosinginventoriesshouldbeatvariableproductioncost(directmaterials,directlabor,directexpenses(ifany)andvariableproductionoverhead)becausethesearetheonlycostsproperlyattributabletotheproduct.2.AbsorptionCostingAbsorptioncostingisdefinedasamethodforaccumulatingthecostsassociatedwithaproductionprocessandapportioningthemtoindividualproducts.Thistypeofcostingisrequiredbytheaccountingstandardstocreateaninventoryvaluationthatisstatedinanorganization'sbalancesheet.Thekeycostsassignedtoproductsunderanabsorptioncostingsystemare:directmaterials,directlabor,andvariablemanufacturingoverhead,fixedmanufacturingoverhead.Inabsorptioncosting,fixedproductioncostsareabsorbedintothecostofunitsandarecarriedforwardininventorytobechargedagainstsalesforthenextperiod.Inventoryvaluesusingabsorptioncostingarethereforegreaterthanthosecalculatedusingmarginalcosting.Thestepsrequiredtoabsorptioncostingare:Assigncoststocostpools.Thisiscomprisedofastandardsetofaccountsthatarealwaysincludedincostpools,andwhichshouldrarelybechanged.Calculateusage.Determinetheamountofusageofwhateveractivitymeasureisusedtoassignoverheadcosts,suchasmachinehoursordirectlaborhoursused.Assigncosts.Dividetheusagemeasureintothetotalcostsinthecostpoolstoarriveattheallocationrateperunitofactivity,andassignoverheadcoststoproducedgoodsbasedonthisusagerate.3.DifferencesbetweentwomethodVariablecostingappliesonlythosecoststoinventorythatwereincurredwheneachindividualunitwasproduced,whileabsorptioncostingappliesallproductioncoststoallunitsproduced.Thisresultsinthefollowingdifferencesbetweenthetwomethods:Costapplication.Onlythevariableco