亨格瑞成本与管理会计（第16版） 课件Chapter 12Decision-Making and Relevant Information

CostAccountingSeventeenthEdition,GlobalEditionChapter12Decision-MakingandRelevantInformationCopyright©2021PearsonEducationLtd.LearningObjectives(1of2)12.1Usethefive-stepdecision-makingprocess12.2

Distinguishrelevantfromirrelevantinformationindecisionsituations12.3Explaintheconceptofopportunitycostandwhymanagersshouldconsideritwhenmakinginsourcingversusoutsourcingdecisions12.4

Knowhowtochoosewhichproductstoproducewhentherearecapacityconstraints12.5ExplainhowtomanagebottlenecksLearningObjectives(2of2)12.6Discussthefactorsmanagersmustconsiderwhenaddingordroppingcustomersorbusinessunits12.7Explainwhybookvalueofequipmentisirrelevanttomanagersmakingequipment-replacementdecisions12.8Explainhowconflictscanarisebetweenthedecisionmodelamanagerusesandtheperformance-evaluationmodeltopmanagementusestoevaluatemanagersInformationandtheDecisionProcessManagersusuallyfollowadecisionmodelforchoosingamongdifferentcoursesofaction.Adecisionmodelisaformalmethodofmakingachoicethatofteninvolvesbothquantitativeandqualitativeanalyses.Managementaccountantsanalyzeandpresentrelevantdatatoguidemanagers’decisions.Managersusethefive-stepdecision-makingprocesspresentedinChapter1tomakedecisions.Five-StepDecision-MakingProcessExhibit12.1Five-StepDecision-MakingProcessforPrecisionSportingGoodsTheConceptofRelevanceRelevantinformationhastwocharacteristics:Itoccursinthefuture.Itdiffersamongthealternativecoursesofaction.Relevantcostsareexpectedfuturecosts.Relevantrevenuesareexpectedfuturerevenues.Pastcosts(historicalcosts)areneverrelevantandarealsocalledsunkcosts.QualitativeandQuantitativeRelevantInformationManagersdividetheoutcomesofdecisionsintotwobroadcategories:quantitativeandqualitative.Quantitativefactorsareoutcomesthataremeasuredinnumericalterms.Qualitativefactorsareoutcomesthataredifficulttomeasureaccuratelyinnumericalterms,suchassatisfaction.Althoughquantitativenonfinancialfactorsandqualitativefactorsaredifficulttomeasureinfinancialterms,theyareimportantformanagerstoconsider.RelevantCostIllustrationExhibit12.2DeterminingRelevantRevenuesandRelevantCostsSunkCostsAreIrrelevantinDecision-MakingSunkcostsarecoststhathavealreadyoccurredandcannotbechanged.Sunkcostsareexcludedbecausetheycannotbechangedbyfutureactions.TerminologyIncrementalcost—theadditionaltotalcostincurredforanactivityDifferentialcost—thedifferenceintotalcostbetweentwoalternativesIncrementalrevenue—theadditionaltotalrevenuefromanactivityDifferentialrevenue—thedifferenceintotalrevenuebetweentwoalternativesNow,let’slookatthetypesofdecisionsthatneedtobemade.TypesofDecisionsThatNeedtoBeMade(1of4)One-time-onlyspecialorders(Slide15)Short-runpricingdecisions(Slide19)Insourcingvs.outsourcing(makeorbuy)(Slide20)Outsourcingandidlefacilities(Slide21)Strategicandqualitativefactors(Slide21)Internationaloutsourcing(Slide22)Thetotalalternativesapproach(Slide22)Theopportunity-costapproach(Slide23)Carryingcostsofinventory(Slide23)TypesofDecisionsThatNeedtoBeMade(2of4)Product-mixdecisionswithcapacityconstraints(Slide24)Managersmakedecisionsaboutwhichproductstosellandinwhatquantities.Thesedecisionsusuallyhaveonlyashort-runfocusbecausetheytypicallyariseinthecontextofcapacityconstraintsthatcanberelaxedinthelongrun.

TypesofDecisionsThatNeedtoBeMade(3of4)Bottlenecks,theoryofconstraints,andthroughput-marginanalysis(Slide26)Thetheoryofconstraints(TOC)describesmethodstomaximizeoperatingincomewhenfacedwithsomebottleneckandsomebottleneckoperations.ToimplementTOC,wedefineandusethreemeasures:ThroughputmarginInvestmentequalsthesumofmaterials,R&DcostsandcapitalcostsofequipmentandbuildingsOperatingcostsequalcostsofoperations(otherthandirectmaterials)TypesofDecisionsThatNeedtoBeMade(4of4)Customerprofitabilityandrelevantcosts(Slide29)Managersmustmakedecisionsaboutaddingordroppingaproductlineorbusinesssegment,butifthecostobjectisacustomer,managersmustdecideaboutadding(Slide32)ordroppingcustomers(Slide31).Branch/segment:addingordiscontinuing(Slide31)Equipmentreplacement(Pastcostsareirrelevant)(Slide34)One-Time-OnlySpecialOrdersDecision:Toacceptorrejectspecialorderswhenthereisidleproductioncapacityandthespecialordershavenolong-runimplications.Decisionrule:Doesthespecialordergenerateadditionaloperatingincome?Yes—acceptNo—rejectComparesrelevantrevenuesandrelevantcoststodetermineprofitability.SpecialOrdersDecisionsExhibit12.5ComparativeContributionIncomeStatementsPotentialProblemsinRelevant-CostAnalysisManagersshouldavoidtwopotentialproblemsinrelevant–costanalysis:Avoidincorrectgeneralassumptionssuchas“Allvariablecostsarerelevant,andallfixedcostsareirrelevant.”Eveninoursimpleexample,wehadirrelevant,variablemarketingcosts.Beawarethatunit-fixed-costdatacanpotentiallymisleadmanagersintwoways.(Seenextslidefordetails)Beware:Unit-Fixed-CostDataUnit-fixed-costdatacanpotentiallymisleadmanagersintwoways:Fixedunitcostsmightincludeirrelevantcosts,coststhatwillnotchangewhetherornottheone-timeonlyorderisacceptedornot.Ifusingthesameunitfixedcostsatdifferentoutputlevels,managersmayreacherroneousconclusions.Totalfixedcostsshouldbeused.Short-RunPricingDecisionsAspecialorderdecisionis,inmanyrespects,ashort-runpricingdecision.Sometimes,thedecisionissimplyaboutsettinganacceptableprice.Rememberthedecisionrule?Anypriceaboveincrementalcostswillimproveoperatingincome;however,considerationmustbegiventocapacityconstraints,currentmarketconditions,customerdemand,competition,etc.InsourcingVersusOutsourcingandMake-or-BuyDecisions(1of4)Outsourcingispurchasinggoodsandservicesfromoutsidevendors.Insourcingmeansyou’llproducethegood(orprovidetheservice)withintheorganization.Decisionsaboutwhethertoinsourceoroutsourcearecalledmake-or-buydecisions.Opportunitycostsarethecontributiontooperatingincomeforgonebynotusingalimitedresourceinitsnext-bestalternativeuse.InsourcingVersusOutsourcingandMake-or-BuyDecisions(2of4)OutsourcingandIdleFacilitiesTomakeagooddecision,managersmustconsiderthedifferenceinrelevantcostsbetweenthealternatives,includingthecostofidlecapacityandrelatedfixedcosts.StrategicandQualitativeFactorsOutsourcingdecisionsinvariablyhavealong-runhorizoninwhichthefinancialcostsandbenefitsofoutsourcingbecomemoreuncertain.Almostalways,strategicandqualitativefactorsbecomeimportantdeterminantsoftheoutsourcingdecision.Weighingallthesefactorsrequiresconsiderablemanagerialjudgmentandcare.InsourcingVersusOutsourcingandMake-or-BuyDecisions(3of4)InternationalOutsourcingInternationaloutsourcingrequiresmanagerstoevaluatemanufacturingandtransportationcosts,exchange-raterisks,andotherstrategicandqualitativefactors,suchasquality,reliability,andefficiencyofthesupplychain.TheTotalAlternativesApproachThisapproachsimplymeansthatmanagersshouldconsiderfuturecostsandrevenuesforallproducts.If,forexample,onedecisionwillcreateidlecapacitybutthatidlecapacitycanbeusedformanufactureofanotherproduct,thatshouldbeconsideredintheoveralldecision.InsourcingVersusOutsourcingandMake-or-BuyDecisions(4of4)TheOpportunity-CostApproachOpportunitycostisthecontributiontooperatingincomethatisforgonebynotusingalimitedresourceinitsnext-bestalternativeuse.Decidingtousearesourceonewaymeansamanagermustforgotheopportunitytousetheresourceinanyotherway.Managersmustconsiderthatcostintheirdecision-making.CarryingCostsofInventoryRecallthatundertheopportunity-costapproach,therelevantcostofanyalternativeis(1)theincrementalcostofthealternativeplus(2)theopportunitycostoftheprofitforgonefromchoosingthatalternative.Theopportunitycostofholdinginventoryistheincomeforgonebytyingupmoneyininventoryandnotinvestingitelsewhere.Product-MixDecisionswithCapacityConstraintsProduct-mixdecisionsaredecisionsmanagersmakeaboutwhichproductstosellandinwhatquantities.Decisionrule(withaconstraint):Choosetheproductthatproducesthehighestcontributionmarginperunitoftheconstrainingresource(notthehighestcontributionmarginperunitoftheproduct).Product-MixDecisionswithCapacityConstraintExampleItemProductAProductBSellingprice$10$30Variablecostperunit$6$15Contributionmargin/unit$4$15Contributionmargin%40%50%Machinehoursrequiredperunit0.53.0Contributionmargin/machinehour$8$5Bottlenecks,TheoryofConstraints,andThroughput-MarginAnalysis(1of3)Abottleneckisaphenomenonwheretheperformanceorcapacityofanentiresystemislimitedbyasingleorlimitednumberofcomponentsorresources.Thetermbottleneckistakenfromthe“assetsarewater”metaphor.Aswaterispouredoutofabottle,therateofoutflowislimitedbythewidthoftheconduitofexit—thatis,bottleneck.Byincreasingthewidthofthebottleneck,onecanincreasetherateatwhichthewaterflowsoutoftheneckatdifferentfrequencies.Suchlimitingcomponentsofasystemaresometimesreferredtoasbottleneckpoints.Bottlenecks,TheoryofConstraints,andThroughput-MarginAnalysis(2of3)Thetheoryofconstraints(TOC)describesmethodstomaximizeoperatingincomewhenfacedwithsomebottleneckandsomenon-bottleneckoperations.TOCdefinesthesethreemeasures:ThroughputmarginInvestmentsOperatingcostsTheobjectiveofTOCistoincreasethroughputmarginwhiledecreasinginvestmentsandoperatingcosts.TOCfocusesonmanagingbottleneckoperations.Bottlenecks,TheoryofConstraints,andThroughput-MarginAnalysis(3of3)Managingbottleneckoperationshasfoursteps:1.Recognizethatbottleneckoperationsdeterminethecontributionmarginoftheentiresystem.2.Identifythebottleneckoperations.3.Keepthebottleneckoperationbusyandsubordinateallnon-bottleneckoperationstothebottleneckoperation.4.Takeactionstoincreasetheefficiencyandcapacityofthebottleneckoperation.CustomerProfitabilityandRelevantCosts(1of2)Whenthecostobjectisacustomer,managersmustdecideaboutaddingordroppingthecustomer.Decisionrule:Doesaddingordroppingacustomeraddoperatingincometothefirm?Yes—addordon’tdropNo—dropordon’taddDecisionisbasedonincrementalincomeofthecustomer,nothowmuchrevenueacustomergenerates.CustomerProfitabilityandRelevantCosts(2of2)Exhibit12.8CustomerProfitabilityAnalysisCustomerProfitabilityAnalysis:Relevant-RevenueandRelevant-CostAnalysisofDroppingaCustomerWhenacustomerdoesn’tproducepositiveoperatingincome,managersshouldattempttodeterminewhy.Somepossiblereasonsmightbethefollowing:Low-marginproductsorderedHighsalesordercostsHighdelivery-processingandotherhandlingcostsHighmarketingcostsOnceidentified,managerscouldworkwiththecustomertoreducecostssothecustomerbecomesprofitable.CustomerProfitabilityAnalysis:Relevant-RevenueandRelevant-CostAnalysisofAddingaCustomerAtleastonecriticaldistinctionexistsbetweentherelevantcostsofaddingversusdroppingacustomer.Depreciationcostisirrelevantindecidingwhethertodropacustomerbecausedepreciationonequipmentthathasalreadybeenpurchasedisapast(sunk)cost,butthecostofpurchasingnewequipmentinthefuturethatwillthenbewrittenoffasdepreciationISrelevantindecidingwhethertoaddacustomer.Relevant-RevenueandRelevant-CostAnalysisofClosingorAddingBranchOfficesorBusinessDivisionsSometimescompaniesmustdecideaboutclosingoraddingbranchofficesorbusinessdivisions.Thisanalysisissimilartothedecisionprocessofaddingorclosingacustomer,withanotableexception:Often,branchesordivisionsareallocatedashareofcorporate-officecosts.Ifabranchordivisionisclosed,thesecostsmaybeallocateddifferentlybuttheymaynotactuallychange.IrrelevanceofPastCostsandEquipment-ReplacementDecisionsSomeitemsofcostareNOTrelevant:Cost,accumulateddepreciation,andbookvalueofexistingequipmentAnypotentialgainorlossonthetransaction,afinancialaccountingphenomenononlySunkcosts(pastcosts)areunavoidable,cannotb