成本與管理會計亨格瑞第13版英文版CA02

CHAPTER2AnIntroductiontoCostTermsandPurposes2024/2/41LEARNINGOBJECTIVESDefineandillustrateacostobjectDistinguishbetweendirectcostsandindirectcostsExplainvariablecostsandfixedcostsInterpretunitcostscautiouslyDistinguishamongmanufacturingcompanies,merchandisingcompanies,andservice-sectorcompaniesDescribethethreecategoriesofinventoriescommonlyfoundinmanufacturingcompaniesDistinguishinventoriablecostsfromperiodcostsExplainwhyproductcostsarecomputedindifferentwaysfordifferentpurposesDescribeaframeworkforcostaccountingandcostmanagement2024/2/42Learningobjective1Defineandillustrateacostobject2024/2/43ⅠBasicCostTerminologyCostSacrificedresourcetoachieveaspecificobjectiveItisusuallymeasuredasthemonetaryamountthatmustbepaidtoacquiregoodsandservices.2024/2/44ⅠBasicCostTerminologyActualCostAcostthathasoccurred,(ahistoricalcost)BudgetedCostApredictedcostOpportunityCostThenextbestchoiceforegone.CostObjectAnythingforwhichaseparatemeasurementofcostsisdesired2024/2/45CostObjectExamplesatBMWCostObjectIllustrationProductBMWX5sportsactivityvehicleServiceDealer-supporttelephonehotlineProjectR&DprojectonDVDsystemenhancementCustomerHerbChambersMotors,adealerthatpurchasesabroadrangeofBMWvehiclesActivitySettingupproductionmachinesDepartmentEnvironmental,Health&Safety2024/2/46CostAndCostTerminology2-7CostAccumulationCostObjectCostObjectCostObjectCostAssignmentTracingAllocatingvia2024/2/47BASICCOSTTERMINOLOGY,CONTS.CostAccumulationdescribestheprocessofaccumulatingcostsinsomeorganizedmannerthroughtheaccountingsystem.Followingaccumulation,costsareassignedtothechosencostobject.involvestracingandallocatingcostsTracing：accumulatedcostswithadirectrelationshiptothecostobjectAllocating：accumulatedcostswithanindirectrelationshiptothecostobject8Learningobjective2Distinguishbetweendirectcostsandindirectcosts2024/2/49ⅡDirectCostsandIndirectCostsDirectcostsofacostobjectarethosethatarerelatedtoagivencostobject(product,department,etc.)andthatcanbetracedtoitinaneconomicallyfeasibleway.Includes:PartsAssemblylinewagesCost-Tracingdescribestheassignmentofdirectcoststotheparticularcostobject.2024/2/410IndirectCostsIndirectCostsCannotbeconvenientlyoreconomicallytraced(tracked)toacostobject.Insteadofbeingtraced,thesecostsareallocatedtoacostobjectinarationalandsystematicmannerIndirectCostsIncludes:ElectricityRentPropertytaxes2-112024/2/411Typesofproduct(manufacturing)costsDirectMaterialsCanbephysicallyanddirectlyassociatedwithmanufacturingthefinishedproduct.DirectLaborTheworkoffactoryemployeesthatcanbephysicallyanddirectlyassociatedwithconvertingrawmaterialsintofinishedgoods.IndirectManufacturing–factorycostsNottraceabletotheproduct.knownasManufacturingOverheadcostsorFactoryOverheadcostsBasicallyeverythingbutdirectmaterialsanddirectlabor.2-122024/2/4122-132024/2/413

severalfactorsthataffecttheclassificationofcostsasdirectorindirect.P25Materialityofthecost.Thesmallertheamountofthecost,thelesslikelythatitiseconomicallyfeasibletotracethatcosttoaparticularcostobject.DirectandIndirectCosts,conts.2024/2/414

Severalfactorsthataffecttheclassificationofcostsasdirectorindirect.P25Easeofgatheringtheinformation.bar-codetechnologyhasmadeitpossibletotracejustaboutanymaterialusedinthemanufacturingprocessDesignofoperations.Acostusedexclusivelyforaspecificcostobjectcanbereadilytraced.DirectandIndirectCosts,conts.15Learningobjective3Explainvariablecostsandfixedcosts2024/2/416ⅢCostbehaviorandClassificationsCostbehaviormeanshowacostwillreacttochangesinthelevelofbusinessactivity.Totalvariablecostschangewhenactivitychanges.Totalfixedcostsremainunchangedwhenactivitychanges.2024/2/4172024/2/418ⅢCostbehaviorVariablecostsareconstantonaper-unitbasis.Ifaproducttakes5poundsofmaterialseach,itstaysthesameperunitregardlessofwhetherone,ten,orathousandunitsareproduced.Fixedcostschangeinverselywiththelevelofproduction.Asmoreunitsareproduced,thesamefixedcostisspreadovermoreandmoreunits,reducingthecostperunit.2024/2/419FIXEDCOSTSANDVARIABLECOSTS,CONTS.VariableCosts,P262024/2/420VariableCostsy=bx,wherey=totalcost,b=variablecostperunitandx=numberofunits.Coststhatvaryproportionatelywithchangesinthecostdriver.2024/2/421TotalVariableCostExampleYourtotallongdistancetelephonebillisbasedonhowmanyminutesyoutalk.MinutesTalkedTotalLongDistance

TelephoneBillMinutesTalkedPerMinute

TelephoneChargeVariableCostPerUnitExampleThecostperlongdistanceminutetalkedisconstant.Forexample,5centsperminute.2024/2/422FIXEDCOSTSANDVARIABLECOSTS,CONTS.FixedCosts,P272024/2/423FixedCostsy=a,whereaistheyinterceptandrepresentsthecostlevelregardlessofvolume.Eg,depreciation,rates&executivesalaries.FixedCostPerUnitExampleNumberofLocalCallsMonthlyBasicTelephoneBillperLocalCallTheaveragecostperlocalcalldecreasesasmorelocalcallsaremade.2024/2/424Costbehaviorsummarized2024/2/425FIXEDCOSTSANDVARIABLECOSTS,CONTS.Acostdriveriswhatcausesacosttobeincurred.P28Statedanotherwaythereisacause-and-effectrelationshipbetweenthelevelofactivityofthecostdriverandthecostincurred.2024/2/426FIXEDCOSTSANDVARIABLECOSTS,CONTS.Relevantrangeistherangeofactivitywithinwhichcostsbehaveaspredicted.P28Costsarefixedorvariableonlywithrespecttoaspecificactivityoragiventimeperiod.Outsidethislevelofactivity,costsbehavedifferently.Thisisnotaconceptthatcanbedeterminedfromatextbook.Observationoftheactualcostsmustbedoneinordertodeterminethisrange.2024/2/4272024/2/428MultipleClassificationofCostsCostsmaybeclassifiedas:Direct/Indirect,andVariable/FixedThesemultipleclassificationsgiverisetoimportantcostcombinations:Direct&VariableDirect&FixedIndirect&VariableIndirect&Fixed2024/2/4292024/2/430Learningobjective4Interpretunitcostscautiously2024/2/431ⅣUNITCOSTSANDTOTALCOSTSUnitcosts(alsocalledaveragecosts)arenormallyusedinmakingdecisionssuchasproductmixandpricing.P30However,managersshouldusuallythinkintermsoftotalcostsformostdecisions.Fixedcosts,whenexpressedonaunitbasiscanbemisleading.2024/2/432UNITCOSTSANDTOTALCOSTS,CONTS.Avoidusingthehigherunitcostwhenproductionlevelchanges.2024/2/433Learningobjective5Distinguishamongmanufacturingcompanies,merchandisingcompanies,andservice-sectorcompanies2024/2/434ⅤDIFFERENTTYPESOFFIRMSManufacturing-sectorcompaniespurchasematerialsandcomponentsandconvertthemintofinishedproducts.p32Merchandising-sectorcompaniespurchaseandselltangibleproductswithoutchangingtheirbasisform.Thesecompaniesareknownasretailers.Service-sectorcompaniesprovideservices(intangibles).However,thereisfrequentlyatangibleaspecttotheservice.2024/2/435Manufacturing2-36Manufacturingcompaniespurchasematerialsandcomponentsandconvertthemintofinishedgoods.

Amanufacturingcompanymustalsodevelop,design,market,anddistributeitsproducts.createandselltheirownproducts2024/2/436Merchandising2-37Merchandisingcompaniespurchaseandthenselltangibleproductswithoutchangingtheirbasicform.productresellers2024/2/437Service2-38Servicecompaniesprovideservicesorintangibleproductstotheircustomers.Laboristhemostsignificantcostcategory.2024/2/438Learningobjective6Describethethreecategoriesofinventoriescommonlyfoundinmanufacturingcompanies2024/2/439ⅥTypesofInventory,InventoriableCosts,andPeriodCostsTypesofInventoryDirectmaterialsinventoryWork-in-ProcessinventoryFinishedgoodinventory2024/2/440Typesofinventories2-41ResourcesinstockandavailableforuseProductsstartedbutnotyetcompleted.OftenabbreviatedasWIPProductscompletedandreadyforsale2024/2/441TypesofinventoriesMerchandisingcompaniespurchaseproductsintheircompletedformanddonotmakechangesintheirbasicform.AninventoryaccountforamerchandisingcompanyiscalledMerchandiseInventory,orsimplyInventory.2024/2/442Learningobjective7Distinguishinventoriablecostsfromperiodcosts2024/2/443INVENTORIABLECOSTSANDPERIODCOSTSInventoriablecostsareallcostsofaproductthatareconsideredassetsonthebalancesheet.P33Thesecostsaredirectmaterials,directlabor,andfactoryoverhead.Theybecomeapartofthecostoftheproductandareassetsuntilsold,whentheybecomecostofgoodssold.Thesearealsoknownasproductcosts.Thesecostsarecapitalizedasassets(inventory)untiltheyaresoldandtransferredtoCostofGoodsSold.2024/2/444INVENTORIABLECOSTSANDPERIODCOSTS,CONTS.Periodcostsareallcostsontheincomestatementotherthancostofgoodssold.P33Periodcostsaretreatedasexpensesoftheperiodinwhichtheyareincurred.havenofuturevalueandareexpensedasincurred2024/2/445ⅦCostFlowsThreekindscondition2024/2/446ⅦCostFlowsPeriodcostsareallcostsintheincomestatementotherthancostofgoodssold.2024/2/447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InventoriableCostsandPeriodCosts,conts.2024/2/448Illustration1-4BeginningWorkInProcessInventory+TotalCurrentManufacturingCosts=TotalCostOfWorkInProcessTotalCostOfWorkInProcess-EndingWorkInProcessInventory=CostOfGoodsManufacturedFormulaOfCostFlows2024/2/4492024/2/4502024/2/451CostOfGoodsManufacturedCalculatesthecostofDirectMaterialsUsedAccumulatesthethreeproductcostsforthecurrentperiodAdjuststhecurrentperiodmanufacturingcoststoaccountforunitsactuallycompleted2024/2/452IncomeStatementFigurecarriesforwardfromtheScheduleofCostofGoodsManufacturedPeriodCostsareexpensedasincurred2024/2/4532024/2/4542024/2/455PRIMECOSTSANDCONVERSIONCOSTSPrimecostsisatermusedtodescribealldirectcostsordirectmaterialsplusdirectlabor.P38Primecosts=$76000+$9000=$85000Conversioncostsisdirectlaborplusfactoryoverhead.itisthecostofconvertingthematerialsintoafinishedproduct.Conversioncosts=$20000+$9000=$290002024/2/456MeasuringcostrequiresjudgmentTwotypicalcostOvertimepremiumOvertimepremiumofdirectlaborasoverheadcostratherthandirectcostforitsrandom.Ifovertimenotrandom,regardasdirectcost.IdletimeOverheadcostsiswagespaidforlackoforders,machinebreakdowns,materialshortages,poorschedulingandsoon.2024/2/457Learningobjective8Explainwhyproductcostsarecomputedindifferentwaysfordifferentpurposes2024/2/458Mayusea“super〞costapproach(comprehensive)Veryspecificdefinitionsofcostfor“costplusprofit〞(mark-up)contractsGAAP-drivenproductcostsonlyⅧDifferentdefinitionsofcostfordifferentapplications2024/2/4592024/2/460Learningobjective9Describeaframeworkforcostaccountingandcostmanagement2024/2/461THREECOMMONFEATURESOFCOSTACCOUNTINGANDCOSTMANAGEMENTCalculatingthecostofproducts,services,andothercostobjects.Managersusethisinformationinavarietyofwaystoformulatestrategyandmakevariousdecisions.2024/2/462THREECOMMONFEATURESOFCOSTACCOUNTINGANDCOSTMANAGEMENT.CONTS.Obtaininginformationforplanningandcontrolandforperformanceevaluation.Budgetingisthemostcommonlyusedtoolforplanningandcontrolandforcesmanagersto:LookaheadTranslatestrategyintoplansCoordinateandcommunicatewithintheorganizationProvideabenchmarkforevaluatingperformance2024/2/463Analyzingtherelevantinformationformakingdecisions.Managersmustunderstandwhichrevenuestoconsiderandwhichtoignoreinthedecision-makingprocess.Managementaccountingcanassistmanagersindeterminingwhichcostsarerelevant.THREECOMMONFEATURESOFCOSTACCOUNTINGANDCOSTMANAGEMENT.CONTS.2024/2/464Question:FinancialStatementsforManufacturingCompaniesChairsPlusisasmallfurnituremanufacturingcompany.Beginningandendingworkinprocessinventorieswere$20,000and$18,000.Directmaterialsusedwere$70,000.Directlabourwas$100,000.Manufacturingoverheadincurredwas$150,000.Whatisthecostofgoodsmanufactured?Beginningworkinprocess$Directlabour$