成本与管理会计 亨格瑞 第13版 英文版 CA02.ppt

1、2020/7/17,1,CHAPTER 2,An Introduction to Cost Terms and Purposes,2020/7/17,2,LEARNING OBJECTIVES,Define and illustrate a cost object Distinguish between direct costs and indirect costs Explain variable costs and fixed costs Interpret unit costs cautiously Distinguish among manufacturing companies, m

2、erchandising companies, and service-sector companies Describe the three categories of inventories commonly found in manufacturing companies Distinguish inventoriable costs from period costs Explain why product costs are computed in different ways for different purposes Describe a framework for cost

3、accounting and cost management,2020/7/17,3,Learning objective 1 Define and illustrate a cost object,2-3,2020/7/17,4, Basic Cost Terminology,Cost Sacrificed resource to achieve a specific objective It is usually measured as the monetary amount that must be paid to acquire goods and services.,2-4,2020

4、/7/17,5, Basic Cost Terminology,Actual Cost A cost that has occurred, (a historical cost) Budgeted Cost A predicted cost Opportunity Cost The next best choice foregone. Cost Object Anything for which a separate measurement of costs is desired,2-5,2020/7/17,6,Cost Object Examples at BMW,2020/7/17,7,C

5、ost And Cost Terminology,2-7,Cost Accumulation,Cost Object,Cost Object,Cost Object,Cost Assignment,Tracing,Allocating,via,2020/7/17,8,BASIC COST TERMINOLOGY,CONTS.,Cost Accumulation describes the process of accumulating costs in some organized manner through the accounting system. Following accumula

6、tion, costs are assigned to the chosen cost object. involves tracing and allocating costs Tracing：accumulated costs with a direct relationship to the cost object Allocating：accumulated costs with an indirect relationship to the cost object,2020/7/17,9,Learning objective 2 Distinguish between direct

7、costs and indirect costs,2-9,2020/7/17,10, Direct Costs and Indirect Costs,Direct costs of a cost object are those that are related to a given cost object (product, department, etc.) and that can be traced to it in an economically feasible way. Includes: Parts Assembly line wages Cost-Tracing descri

8、bes the assignment of direct costs to the particular cost object.,2020/7/17,11,Indirect Costs,Indirect Costs Cannot be conveniently or economically traced (tracked) to a cost object. Instead of being traced, these costs are allocated to a cost object in a rational and systematic manner Indirect Cost

9、s Includes: Electricity Rent Property taxes,2-11,2020/7/17,12,Types of product (manufacturing) costs,Direct Materials Can be physically and directly associated with manufacturing the finished product. Direct Labor The work of factory employees that can be physically and directly associated with conv

10、erting raw materials into finished goods. Indirect Manufacturing factory costs Not traceable to the product. known as Manufacturing Overhead costs or Factory Overhead costs Basically everything but direct materials and direct labor.,2-12,2020/7/17,13,2-13,2020/7/17,14,several factors that affect the

11、 classification of costs as direct or indirect.P25 Materiality of the cost. The smaller the amount of the cost, the less likely that it is economically feasible to trace that cost to a particular cost object.,Direct and Indirect Costs,conts.,2020/7/17,15,Several factors that affect the classificatio

12、n of costs as direct or indirect.P25 Ease of gathering the information. bar-code technology has made it possible to trace just about any material used in the manufacturing process Design of operations. A cost used exclusively for a specific cost object can be readily traced.,Direct and Indirect Cost

13、s,conts.,2020/7/17,16,Learning objective 3 Explain variable costs and fixed costs,2-16,2020/7/17,17, Cost behavior and Classifications,2-17,Cost behavior means how a cost will react to changes in the level of business activity. Total variable costs change when activity changes. Total fixed costs rem

14、ain unchanged when activity changes.,2020/7/17,18,2020/7/17,19, Cost behavior,Variable costs are constant on a per-unit basis. If a product takes 5 pounds of materials each, it stays the same per unit regardless of whether one, ten, or a thousand units are produced. Fixed costs change inversely with

15、 the level of production. As more units are produced, the same fixed cost is spread over more and more units, reducing the cost per unit.,2-19,2020/7/17,20,FIXED COSTS AND VARIABLE COSTS ,CONTS.,Variable Costs ,P26,2020/7/17,21,Variable Costs,y = bx, where y = total cost, b = variable cost per unit

16、and x = number of units. Costs that vary proportionately with changes in the cost driver.,2020/7/17,22,Total Variable Cost Example,Your total long distance telephone bill is based on how many minutes you talk.,Minutes Talked,Total Long DistanceTelephone Bill,Minutes Talked,Per MinuteTelephone Charge

17、,Variable Cost Per Unit Example,The cost per long distance minute talked is constant. For example, 5 cents per minute.,2020/7/17,23,FIXED COSTS AND VARIABLE COSTS ,CONTS.,Fixed Costs,P27,2020/7/17,24,Fixed Costs,y = a, where a is the y intercept and represents the cost level regardless of volume. Eg

18、, depreciation, rates & executive salaries.,Fixed Cost Per Unit Example,Number of Local Calls,Monthly Basic Telephone Bill per Local Call,The average cost per local call decreases as more local calls are made.,2020/7/17,25,Cost behavior summarized,2-25,2020/7/17,26,FIXED COSTS AND VARIABLE COSTS ,CO

19、NTS.,A cost driver is what causes a cost to be incurred. P28 Stated another way there is a cause-and-effect relationship between the level of activity of the cost driver and the cost incurred.,2020/7/17,27,FIXED COSTS AND VARIABLE COSTS ,CONTS.,Relevant range is the range of activity within which co

20、sts behave as predicted. P28 Costs are fixed or variable only with respect to a specific activity or a given time period. Outside this level of activity, costs behave differently. This is not a concept that can be determined from a textbook. Observation of the actual costs must be done in order to d

21、etermine this range.,2020/7/17,28,2-28,2020/7/17,29,Multiple Classification of Costs,Costs may be classified as: Direct / Indirect, and Variable / Fixed These multiple classifications give rise to important cost combinations: Direct & Variable Direct & Fixed Indirect & Variable Indirect & Fixed,2020

22、/7/17,30,2-30,2020/7/17,31,Learning objective 4 Interpret unit costs cautiously,2-31,2020/7/17,32, UNIT COSTS AND TOTAL COSTS,Unit costs (also called average costs) are normally used in making decisions such as product mix and pricing. P30 However, managers should usually think in terms of total cos

23、ts for most decisions. Fixed costs, when expressed on a unit basis can be misleading.,2020/7/17,33,33,UNIT COSTS AND TOTAL COSTS,CONTS.,Avoid using the higher unit cost when production level changes.,2020/7/17,34,Learning objective 5 Distinguish among manufacturing companies, merchandising companies

24、, and service-sector companies,2-34,2020/7/17,35, DIFFERENT TYPES OF FIRMS,Manufacturing-sector companies purchase materials and components and convert them into finished products. p32 Merchandising-sector companies purchase and sell tangible products without changing their basis form. These compani

25、es are known as retailers. Service-sector companies provide services (intangibles). However, there is frequently a tangible aspect to the service.,2020/7/17,36,Manufacturing,2-36,Manufacturing companies purchase materials and components and convert them into finished goods.,A manufacturing company m

26、ust also develop, design, market, and distribute its products.,create and sell their own products,2020/7/17,37,Merchandising,2-37,Merchandising companies purchase and then sell tangible products without changing their basic form.,product resellers,2020/7/17,38,Service,2-38,Service companies provide

27、services or intangible products to their customers.,Labor is the most significant cost category.,2020/7/17,39,Learning objective 6 Describe the three categories of inventories commonly found in manufacturing companies,2-39,2020/7/17,40, Types of Inventory, Inventoriable Costs ,and Period Costs,Types

28、 of Inventory Direct materials inventory Work-in-Process inventory Finished good inventory,2020/7/17,41,Types of inventories,2-41,Resources in stock and available for use,Products started but not yet completed. Often abbreviated as WIP,Products completed and ready for sale,2020/7/17,42,Types of inve

29、ntories,Merchandising companies purchase products in their completed form and do not make changes in their basic form. An inventory account for a merchandising company is called Merchandise Inventory, or simply Inventory.,2-42,2020/7/17,43,Learning objective 7 Distinguish inventoriable costs from pe

30、riod costs,2-43,2020/7/17,44,INVENTORIABLE COSTS AND PERIOD COSTS,Inventoriable costs are all costs of a product that are considered assets on the balance sheet.P33 These costs are direct materials, direct labor, and factory overhead. They become a part of the cost of the product and are assets unti

31、l sold, when they become cost of goods sold. These are also known as product costs. These costs are capitalized as assets (inventory) until they are sold and transferred to Cost of Goods Sold.,2020/7/17,45,INVENTORIABLE COSTS AND PERIOD COSTS,CONTS.,Period costs are all costs on the income statement

32、 other than cost of goods sold. P33 Period costs are treated as expenses of the period in which they are incurred. have no future value and are expensed as incurred,2020/7/17,46, Cost Flows,Three kinds condition,2020/7/17,47, Cost Flows,Period costs are all costs in the income statement other than c

33、ost of goods sold.,2020/7/17,48,48,Inventoriable Costs and Period Costs,conts.,2020/7/17,49,Illustration 1-4,Beginning Work In Process Inventory+ Total Current Manufacturing Costs=Total Cost Of Work In Process,Total Cost Of Work In Process-Ending Work In Process Inventory= Cost Of Goods Manufactured

34、,Formula Of Cost Flows,2020/7/17,50,2020/7/17,51,2020/7/17,52,Cost Of Goods Manufactured,2-52,Calculates the cost of Direct Materials Used,Accumulates the three product costs for the current period,Adjusts the current period manufacturing costs to account for units actually completed,2020/7/17,53,In

35、come Statement,2-53,Figure carries forward from the Schedule of Cost of Goods Manufactured,Period Costs are expensed as incurred,2020/7/17,54,2020/7/17,55,2020/7/17,56,PRIME COSTS AND CONVERSION COSTS,Prime costs is a term used to describe all direct costs or direct materials plus direct labor. P38

36、Prime costs=$76000+$9000=$85000 Conversion costs is direct labor plus factory overhead. it is the cost of converting the materials into a finished product. Conversion costs=$20000+$9000=$29000,2020/7/17,57,Measuring cost requires judgment,Two typical cost Overtime premium Overtime premium of direct

37、labor as overhead cost rather than direct cost for its random. If overtime not random, regard as direct cost. Idle time Overhead costs is wages paid for lack of orders, machine breakdowns, material shortages, poor scheduling and so on.,2020/7/17,58,Learning objective 8 Explain why product costs are

38、computed in different ways for different purposes,2-58,2020/7/17,59,2-59,May use a “super” cost approach (comprehensive),Very specific definitions of cost for “cost plus profit” (mark-up) contracts,GAAP-driven product costs only, Different definitions of cost for different applications,2020/7/17,60,

39、2-60,2020/7/17,61,Learning objective 9 Describe a framework for cost accounting and cost management,2-61,2020/7/17,62,THREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGEMENT,Calculating the cost of products, services, and other cost objects. Managers use this information in a variety of ways to

40、 formulate strategy and make various decisions.,2020/7/17,63,THREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGEMENT.CONTS.,Obtaining information for planning and control and for performance evaluation. Budgeting is the most commonly used tool for planning and control and forces managers to: Lo

41、ok ahead Translate strategy into plans Coordinate and communicate within the organization Provide a benchmark for evaluating performance,2020/7/17,64,Analyzing the relevant information for making decisions. Managers must understand which revenues to consider and which to ignore in the decision-making process. Management accounting can assist managers in determining which costs are relevant.,THREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGEMENT.CONTS.,2020/7/17,65,Question: Financial Statements for Manufacturing Companies,Chairs Plus is a small furni