成本與管理會計亨格瑞第13版英文版CA02ppt課件

1、CHAPTER 2An Introduction to Cost Terms and PurposesLEARNING OBJECTIVESDefine and illustrate a cost objectDistinguish between direct costs and indirect costsExplain variable costs and fixed costsInterpret unit costs cautiously Distinguish among manufacturing companies, merchandising companies, and se

2、rvice-sector companiesDescribe the three categories of inventories commonly found in manufacturing companiesDistinguish inventoriable costs from period costsExplain why product costs are computed in different ways for different purposesDescribe a framework for cost accounting and cost managementLear

3、ning objective 1Define and illustrate a cost object Basic Cost TerminologyCost Sacrificed resource to achieve a specific objectiveIt is usually measured as the monetary amount that must be paid to acquire goods and services. Basic Cost TerminologyActual Cost A cost that has occurred, (a historical c

4、ost) Budgeted Cost A predicted costOpportunity CostThe next best choice foregone. Cost Object Anything for which a separate measurement of costs is desiredCost Object Examples at BMWCost ObjectIllustrationProductBMW X 5 sports activity vehicleServiceDealer-support telephone hotlineProjectR&D project

5、 on DVD system enhancementCustomerHerb Chambers Motors, a dealer that purchases a broad range of BMW vehiclesActivitySetting up production machinesDepartmentEnvironmental, Health & Safety Cost And Cost Terminology2-7CostAccumulationCost ObjectCost ObjectCost ObjectCostAssignmentTracingAllocatingviaB

6、ASIC COST TERMINOLOGY,CONTS.Cost Accumulation describes the process of accumulating costs in some organized manner through the accounting system.Following accumulation, costs are assigned to the chosen cost object. involves tracing and allocating costsTracing：accumulated costs with a direct relation

7、ship to the cost object Allocating：accumulated costs with an indirect relationship to the cost object Learning objective 2Distinguish between direct costs and indirect costs Direct Costs and Indirect CostsDirect costs of a cost object are those that are related to a given cost object (product, depar

8、tment, etc.) and that can be traced to it in an economically feasible way.Includes:PartsAssembly line wagesCost-Tracing describes the assignment of direct costs to the particular cost object.Indirect CostsIndirect Costs Cannot be conveniently or economically traced (tracked) to a cost object. Instea

9、d of being traced, these costs are allocated to a cost object in a rational and systematic mannerIndirect Costs Includes:ElectricityRentProperty taxes2-11Types of product (manufacturing) costsDirect MaterialsCan be physically and directly associated with manufacturing the finished product.Direct Lab

10、orThe work of factory employees that can be physically and directly associated with converting raw materials into finished goods.Indirect Manufacturing factory costs Not traceable to the product. known as Manufacturing Overhead costs or Factory Overhead costsBasically everything but direct materials

11、 and direct labor.2-122-13several factors that affect the classification of costs as direct or indirect.P25Materiality 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.Seve

12、ral factors that affect the classification of costs as direct or indirect.P25Ease of gathering the information. bar-code technology has made it possible to trace just about any material used in the manufacturing processDesign of operations. A cost used exclusively for a specific cost object can be r

13、eadily traced. Direct and Indirect Costs,conts.Learning objective 3Explain variable costs and fixed costs Cost behavior and Classifications 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 remai

14、n unchanged when activity changes. Cost behaviorVariable 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 the level of production.As mor

15、e units are produced, the same fixed cost is spread over more and more units, reducing the cost per unit.FIXED COSTS AND VARIABLE COSTS ,CONTS.Variable Costs ,P26Variable Costsy = bx, where y = total cost, b = variable cost per unit and x = number of units.Costs that vary proportionately with change

16、s in the cost driver.Total Variable Cost Example Your total long distance telephone bill is based on how many minutes you talk.Minutes TalkedTotal Long DistanceTelephone BillMinutes TalkedPer MinuteTelephone ChargeVariable Cost Per Unit Example The cost per long distance minute talked is constant. F

17、or example, 5 cents per minute.FIXED COSTS AND VARIABLE COSTS ,CONTS.Fixed Costs,P27 Fixed Costsy = a, where a is the y intercept and represents the cost level regardless of volume.Eg, depreciation, rates & executive salaries.Fixed Cost Per Unit ExampleNumber of Local Calls Monthly Basic Telephone B

18、ill per Local CallThe average cost per local call decreases as more local calls are made. Cost behavior summarizedFIXED COSTS AND VARIABLE COSTS ,CONTS.A cost driver is what causes a cost to be incurred. P28Stated another way there is a cause-and-effect relationship between the level of activity of

19、the cost driver and the cost incurred. FIXED COSTS AND VARIABLE COSTS ,CONTS. Relevant range is the range of activity within which costs behave as predicted. P28Costs are fixed or variable only with respect to a specific activity or a given time period.Outside this level of activity, costs behave di

20、fferently. This is not a concept that can be determined from a textbook.Observation of the actual costs must be done in order to determine this range. Multiple Classification of CostsCosts may be classified as:Direct / Indirect, and Variable / FixedThese multiple classifications give rise to importa

21、nt cost combinations:Direct & VariableDirect & FixedIndirect & VariableIndirect & FixedLearning objective 4Interpret unit costs cautiously UNIT COSTS AND TOTAL COSTS Unit costs (also called average costs) are normally used in making decisions such as product mix and pricing. P30However, managers sho

22、uld usually think in terms of total costs for most decisions.Fixed costs, when expressed on a unit basis can be misleading. UNIT COSTS AND TOTAL COSTS,CONTS.Avoid using the higher unit cost when production level changes.Learning objective 5 Distinguish among manufacturing companies, merchandising co

23、mpanies, and service-sector companies DIFFERENT TYPES OF FIRMS Manufacturing-sector companies purchase materials and components and convert them into finished products. p32Merchandising-sector companies purchase and sell tangible products without changing their basis form. These companies are known

24、as retailers.Service-sector companies provide services (intangibles). However, there is frequently a tangible aspect to the service. Manufacturing2-36Manufacturing companiespurchase materials and components andconvert them into finished goods.A manufacturing company must also develop, design, market

25、, and distribute its products.create and sell their own productsMerchandising2-37Merchandising companiespurchase and then sell tangible productswithout changing their basic duct resellersService2-38Service companiesprovide services or intangibleproducts to their customers.Labor is the most s

26、ignificant cost category.Learning objective 6 Describe the three categories of inventories commonly found in manufacturing companies Types of Inventory, Inventoriable Costs ,and Period CostsTypes of InventoryDirect materials inventoryWork-in-Process inventoryFinished good inventoryTypes of inventori

27、es2-41Resources in stock and available for useProducts started but not yet completed. Often abbreviated as WIPProducts completed and ready for saleTypes of inventoriesMerchandising companies purchase products in their completed form and do not make changes in their basic form. An inventory account f

28、or a merchandising company is called Merchandise Inventory, or simply Inventory. Learning objective 7 Distinguish inventoriable costs from period costsINVENTORIABLE COSTS AND PERIOD COSTS Inventoriable costs are all costs of a product that are considered assets on the balance sheet.P33These costs ar

29、e direct materials, direct labor, and factory overhead. They become a part of the cost of the product and are assets until 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 o

30、f Goods Sold.INVENTORIABLE COSTS AND PERIOD COSTS,CONTS.Period costs are all costs on the income statement other than cost of goods sold. P33Period costs are treated as expenses of the period in which they are incurred.have no future value and are expensed as incurred Cost FlowsThree kinds condition

31、 Cost FlowsPeriod costs are all costs in the incomestatement other than cost of goods sold.直接人工制造費用直接資料管理費用財務(wù)費用銷售費用期間本錢變動性制造費用固定性制造費用固定本錢期間本錢產(chǎn)品本錢變動本錢產(chǎn)品本錢制造本錢按本錢習(xí)性本錢會計管理睬計Inventoriable Costs and Period Costs,conts. Illustration 1-4Beginning Work In Process Inventory+ Total Current Manufacturing Costs

32、=Total Cost Of Work In ProcessTotal Cost Of Work In Process-Ending Work In Process Inventory= Cost Of Goods ManufacturedFormula Of Cost FlowsCost Of Goods ManufacturedCalculates the cost of Direct Materials UsedAccumulates the three product costs for the current periodAdjusts the current period manu

33、facturing costs to account for units actually completedIncome StatementFigure carries forward from the Schedule of Cost of Goods ManufacturedPeriod Costs are expensed as incurred PRIME COSTS AND CONVERSION COSTSPrime costs is a term used to describe all direct costs or direct materials plus direct l

34、abor. P38Prime costs=$76000+$9000=$85000Conversion costs is direct labor plus factory overhead. it is the cost of converting the materials into a finished product. Conversion costs=$20000+$9000=$29000Measuring cost requires judgmentTwo typical costOvertime premium Overtime premium of direct labor as

35、 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.Learning objective 8 Explain why product costs are computed in different wa

36、ys for different purposes May use a “super cost approach (comprehensive)Very specific definitions of cost for “cost plus profit (mark-up) contractsGAAP-driven product costs only Different definitions of cost for different applicationsLearning objective 9 Describe a framework for cost accounting and

37、cost managementTHREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGEMENTCalculating the cost of products, services, and other cost objects. Managers use this information in a variety of ways to formulate strategy and make various decisions. THREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGE

38、MENT.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: Look aheadTranslate strategy into plansCoordinate and communicate within the organizationProvide a benchmark for evaluat

39、ing performanceAnalyzing 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.Question: Financial Statements for Manufacturing CompaniesChairs Plus is a sm