ManufacturingCostConcepts(英文版知识讲义)

ManufacturingCostConcepts(英文版知识讲义)TheProductDirect

MaterialsDirect

LaborManufacturing

OverheadManufacturingCostsDirectMaterials

Thosematerialsthatbecomeanintegralpartoftheproductandthatcanbeconvenientlytraceddirectlytoit.Exle:AradioinstalledinanautomobileDirectLaborThoselaborcoststhatcanbeeasilytracedtoindividualunitsofproduct.Exle:WagespaidtoautomobileassemblyworkersManufacturingcoststhatcannotbetraceddirectlytospecificunitsproduced.ManufacturingOverheadExles:IndirectlaborandindirectmaterialsWagespaidtoemployeeswhoarenotdirectlyinvolvedinproductionwork.

Exles:maintenanceworkers,janitorsandsecurityguards.Materialsusedtosupporttheproductionprocess.

Exles:lubricantsandcleaningsuppliesusedintheautomobileassemblyplant.ClassificationsofCostsDirect

MaterialsDirect

LaborManufacturing

OverheadPrime

CostConversion

CostManufacturingcostsareoften

combinedasfollows:NonmanufacturingCostsMarketingandsellingcosts...Costsnecessarytogettheorderanddelivertheproduct.Administrativecosts...Allexecutive,organizational,andclericalcosts.CostClassificationsforPredictingCostBehavior

Howacostwillreacttochangesinthelevelofbusinessactivity.Totalvariablecostschangewhenactivitychanges.Totalfixedcostsremainunchangedwhenactivitychanges.TotalVariableCost

Yourtotallongdistancetelephonebillisbasedonhowmanyminutesyoutalk.MinutesTalkedTotalLongDistance

TelephoneBillVariableCostPerUnitMinutesTalkedPerMinute

TelephoneChargeThecostperlongdistanceminutetalkedisconstant.Forexle,10centsperminute.TotalFixedCost

Yourmonthlybasictelephonebillprobablydoesnotchangewhenyoumakemorelocalcalls.NumberofLocalCallsMonthlyBasicTelephoneBillFixedCostPerUnitNumberofLocalCallsMonthlyBasicTelephoneBillperLocalCallTheaveragecostperlocalcalldecreasesasmorelocalcallsaremade.CostClassificationsforPredictingCostBehaviorCostBehaviorFixedcostsareusuallycharacterizedby:

a. Unitcoststhatremainconstant. b. Totalcoststhatincreaseasactivity decreases. c. Totalcoststhatincreaseasactivity increases. d. Totalcoststhatremainconstant.CostBehaviorVariablecostsareusuallycharacterizedby:a. Unitcoststhatdecreaseasactivity increases.b. Totalcoststhatincreaseasactivity decreases.c. Totalcoststhatincreaseasactivity increases.d. Totalcoststhatremainconstant.Variablecostsareusuallycharacterizedby:a. Unitcoststhatdecreaseasactivity increases.b. Totalcoststhatincreaseasactivity decreases.c. Totalcoststhatincreaseasactivity increases.d. Totalcoststhatremainconstant.CostBehaviorTheLinearityAssumptionandtheRelevantRangeActivityTotalCostEconomist’s

CurvilinearCostFunctionActivityTotalCostEconomist’s

CurvilinearCostFunctionAccountant’sStraight-LineApproximation(constantunitvariablecost)TheLinearityAssumptionandtheRelevantRangeActivityTotalCostRelevant

RangeTheLinearityAssumptionandtheRelevantRangeAccountant’sStraight-LineApproximation(constantunitvariablecost)Economist’s

CurvilinearCostFunctionAstraightlinecloselyapproximatesacurvilinearvariablecostlinewithintherelevantrange.TypesofFixedCostsFixedCostsDiscretionaryMaybealteredintheshort-termbycurrentmanagerialdecisionsCommittedLong-term,cannotbereducedintheshortterm.ExlesDepreciationonBuildingsandEquipmentExlesAdvertisingandResearchandDevelopmentTrendTowardFixedCostsIncreasedautomation.Increaseinsalariedknowledgeworkerswhoaredifficulttotrainandreplace.ImplicationsManagersaremore“locked-in”withfewerdecisionalternatives.Planningbecomesmorecrucialbecausefixedcostsaredifficulttochangewithcurrentoperatingdecisions.RentCostinThousandsofDollars01,0002,0003,000

RentedArea(SquareFeet)03060FixedCostsandRelevantRange90

Relevant

RangeTotalcostdoesn’tchangeforawiderangeofactivity,andthenjumpstoanewhighercostforthenexthigherrangeofactivity.Howdoesthistypeoffixedcostdifferfromastep-variablecost?Step-variablecostscanbeadjustedmorequicklyand...Thewidthoftheactivitystepsismuchwiderforthefixedcost.FixedCostsandRelevantRangeAmixedcost

hasbothfixedandvariable

components.MixedCostsConsiderthe

followingelectricutilityexle.FixedMonthly

UtilityChargeVariable

UtilityChargeActivity(KilowattHours)TotalUtilityCostMixedCostsXYTotalmixedcostTotalmixedcostY=a+bXFixedMonthly

UtilityChargeVariable

UtilityChargeActivity(KilowattHours)TotalUtilityCostMixedCostsXYFixedMonthly

UtilityChargeVariable

UtilityChargeActivity(KilowattHours)TotalUtilityCostTotalmixedcostY=a+bXMixedCostsbXaXYTheAnalysisofMixedCostsEngineeringApproachAccountAnalysisScattergraphMethodLeast-SquareRegressionMethodHigh-LowMethodEngineeringEstimatesCostestimatesarebasedonanevaluation

ofproductionmethods,andmaterial,labor

andoverheadrequirements.WiseCorecordedthefollowingproductionactivityandmaintenancecostsfortwomonths:

Usingthesetwolevelsofactivity,compute:thevariablecostperunit;thefixedcost;andthenexpressthecostsinequationformY=a+bX.TheHigh-LowMethod

Unitvariablecost=Changeincost

ChangeinunitsTheHigh-LowMethodTheHigh-LowMethod

Unitvariablecost=$3,600÷4,000units=$0.90perunitTheHigh-LowMethod

Unitvariablecost=$3,600÷4,000units=$0.90perunitFixedcost=Totalcost–TotalvariablecostFixedcost=$9,700–($0.90perunit×9,000units)Fixedcost=$9,700–$8,100=$1,600

Unitvariablecost=$3,600÷4,000units=$0.90perunitFixedcost=Totalcost–TotalvariablecostFixedcost=$9,700–($0.90perunit×9,000units)Fixedcost=$9,700–$8,100=$1,600Totalcost=Fixedcost+Variablecost(Y=a+bX)

Y=$1,600+$0.90XTheHigh-LowMethod

Ifsalessalariesandcommissionsare$10,000when80,000unitsaresoldand$14,000when120,000unitsaresold,whatisthevariableportionofsalessalariesandcommission? a.$0.08perunit b.$0.10perunit c.$0.12perunit d.$0.125perunit TheHigh-LowMethod$4,000÷40,000units

=$0.10perunit

Ifsalessalariesandcommissionsare$10,000when80,000unitsaresoldand$14,000when120,000unitsaresold,whatisthefixedportionofsalessalariesandcommissions? a.$2,000 b.$4,000 c.$10,000 d.$12,000 TheHigh-LowMethod

Ifsalessalariesandcommissionsare$10,000when80,000unitsaresoldand$14,000when120,000unitsaresold,whatisthefixedportionofsalessalariesandcommissions? a.$2,000 b.$4,000 c.$10,000 d.$12,000 TheHigh-LowMethodTheScattergraphMethodPlotthedatapointsonagraph(totalcostvs.activity).01234*TotalCostin

1,000’sofDollars10200*********Activity,1,000’sofUnitsProducedXYTheScattergraphMethodDrawalinethroughthedatapointswithaboutan

equalnumbersofpointsaboveandbelowtheline.01234*TotalCostin

1,000’sofDollars10200*********Activity,1,000’sofUnitsProducedXYTheScattergraphMethodSlope=Changeincost

ChangeinunitsHorizontaldistanceisthechangeinactivity.01234*TotalCostin

1,000’sofDollars10200*********Activity,1,000’sofUnitsProducedXYVerticaldistanceisthechangeincost.Accountantsandmanagersmayusecomputersoftwaretofitaregressionlinethroughthedatapoints.Thecostanalysisobjectiveisthesame:Y=a+bxLeast-SquaresRegressionMethodLeast-squaresregressionalsoprovidesastatistic,called

theadjustedR2,thatisameasureofthegoodness

offitoftheregressionlinetothedatapoints.

01234TotalCost10200Activity**********Least-SquaresRegressionMethodR2isthepercentageofthevariation

intotalcostexplainedbytheactivity.R2forthisrelationshipisnear

100%sincethedatapointsare

veryclosetotheregressionline.XYTheContributionFormatThecontributionmarginformatemphasizescostbehavior.Contributionmargincoversfixedcosts

andprovidesforincome.TheContributionFormatUsedprimarilyfor

externalreporting.Usedprimarilyby

management.DirectCostsandIndirectCostsDirectcostsCoststhatcanbe

easilyandconvenientlytracedtoaunitofproductorothercostobjective.Exles:directmaterialanddirectlaborIndirectcostsCostscannotbeeasilyandconvenientlytracedtoaunitofproductorothercostobject.Exle:manufacturingoverheadCostConceptsforDecisionMaking

Arelevantcost

isacostthatdiffersbetweenalternatives.12IdentifyingRelevantCostsSunkcost

--acostthathasalreadybeenincurredandthatcannotbeavoidedregardlessofwhatamanagerdecidestodo.DifferentialCostsandRevenuesCostsandrevenuesthatdifferamongalternatives.Exle:Youhaveajobpaying$1,500permonthinyourhometown.Youhaveajobofferinaneighboringcitythatpays$2,000permonth.Thecommutingcosttothecityis$300permonth.Differentialrevenueis:$2,000–$1,500=$500DifferentialCostsandRevenuesCostsandrevenuesthatdifferamongalternatives.Differentialrevenueis:$2,000–$1,500=$500

Differentialcostis:

$300Exle:Youhaveajobpaying$1,500permonthinyourhometown.Youhaveajobofferinaneighboringcitythatpays$2,000permonth.Thecommutingcosttothecityis$300permonth.OpportunityCostsThepotentialbenefitthatisgivenupwhenonealternativeisselectedoveranother.

Exle:Ifyouwere

notattendingcollege,

youcouldbeearning

$15,000peryear.

Your