《ABC成本分析法講義》由會員分享，可在線閱讀，更多相關(guān)《ABC成本分析法講義（72頁珍藏版）》請在裝配圖網(wǎng)上搜索。

1、Topic 6 Activity-Based CostingMAA 703Management Accounting第一管理資源網(wǎng)（），提供海量管理資料免費下載！1Evolution of ABClConventional costing systems use a two-stage allocation process:1.service department costs are allocated to production departments.2.production department overhead costs are allocated to products using

2、 a volume-based predetermined overhead rate.第一管理資源網(wǎng)（），提供海量管理資料免費下載！2Product costs dont make senselProblem:There may be no relationship between the overhead application base and the way that different products cause overhead costslThe result:vHigh-volume simple products are over-costed and over-price

3、dvLow-volume complex products are under-costed and under-priced第一管理資源網(wǎng)（），提供海量管理資料免費下載！3Plantwide Overhead RatesCompanies have tended to use as the overhead application base.However direct labour is now a relatively minor part of total manufacturing cost.Many tasks that used to be done by hand are no

4、w done by automated equipment.第一管理資源網(wǎng)（），提供海量管理資料免費下載！4A two stage process isnecessary because costsare allocated to departmentsand then to products.Finishing DepartmentShipping DepartmentPainting DepartmentDepartmental Overhead Rates第一管理資源網(wǎng)（），提供海量管理資料免費下載！5Department1Department2Department3IndirectLa

5、borIndirectMaterialsOtherOverheadDepartmental Overhead Rates第一管理資源網(wǎng)（），提供海量管理資料免費下載！下載自第一管理資源網(wǎng)6Department1Department2Department3 Products Departmental Overhead RatesIndirectLaborIndirectMaterialsOtherOverhead第一管理資源網(wǎng)（），提供海量管理資料免費下載！7Department1Department2Department3 Products Direct Labour HoursMachine

6、HoursRawMaterialsCostDepartmental Allocation BasesDepartmental Overhead RatesIndirectLaborIndirectMaterialsOtherOverhead第一管理資源網(wǎng)（），提供海量管理資料免費下載！8Cost Distortions caused by 2-stage allocationslThere is a no link between the cause of support activity costs and the basis for assigning these costs to pro

7、ductslWhy?1.Allocations are based on unit or volumerelated measures.2.Different products consume different amounts of support activities.第一管理資源網(wǎng)（），提供海量管理資料免費下載！9Questionable profit marginslTo compete in the marketplace,some companies have had to cut the prices of high volume popular items.lButThey h

8、ave been able to achieve high mark-ups on low volume specialty products.第一管理資源網(wǎng)（），提供海量管理資料免費下載！10Erosion of company profitslPrice cuts produce increased sales in units but decreased total revenuelHigh mark-ups on specialty products didnt offset the fall in profit margins of high volume products第一管理資

9、源網(wǎng)（），提供海量管理資料免費下載！11Causes of problemslIncreased product diversitylchanging cost structuresluse of volume-based cost driversHave resulted in:distorted product costs第一管理資源網(wǎng)（），提供海量管理資料免費下載！12Solution:Activity Based CostinglABC uses cost drivers that directly link activities performed to products made.

10、lcost drivers are selected which measure the average demand placed on each activity by each product.lactivity cost pools are assigned to products in proportion to the way that they consume each activity.第一管理資源網(wǎng)（），提供海量管理資料免費下載！13Solution:Activity Based CostinglACTIVITIES CONSUME RESOURCESlPRODUCTS CO

11、NSUME ACTIVITIESlActivities are used to link resource costs to products第一管理資源網(wǎng)（），提供海量管理資料免費下載！14Activity Based Costing(ABC)The objective of activity-based costing is to understand the causes of overhead costs and to identify the real profitability of products and customers.ABC is agood supplement to

12、 our traditional cost systemI agree!第一管理資源網(wǎng)（），提供海量管理資料免費下載！15Overhead rates maybe based on activityat capacity.Activity Based Costing(ABC)Activity-Based CostingBoth manufacturingand nonmanufacturingcosts may be assigned toproducts.Some manufacturingcosts may be excludedfrom productcosts.There are a

13、numberof cost pools,each ofwhich is allocatedusing a uniquemeasure of activity.Allocation bases oftendiffer fromtraditional costingsystems.第一管理資源網(wǎng)（），提供海量管理資料免費下載！16How Costs are Treated Under Activity-Based CostingLevel of ComplexityOverhead Allocation Plantwide OverheadRateDepartmentalOverheadRates

14、Activity BasedCosting第一管理資源網(wǎng)（），提供海量管理資料免費下載！17Activity-based costinglis a way of measuring both the cost of cost objects and the performance of activitieslcan help solve problems such as vdistorted product costsvpoor cost controllthe form of ABC adopted depends on the problems that need to be addres

15、sed第一管理資源網(wǎng)（），提供海量管理資料免費下載！18Designing an ABC SystemCost Objects(e.g.,productsand customers)ActivitiesConsumptionof ResourcesCost第一管理資源網(wǎng)（），提供海量管理資料免費下載！19第一管理資源網(wǎng)（），提供海量管理資料免費下載！20Identifying and Defining ActivitiesAn ACTIVITY is a part of the productionprocess for which managementwants a separate rep

16、orting ofcosts.Unit-LevelActivitiesBatch-Level ActivitiesProduct-sustainingActivitiesFacility-sustainingActivities第一管理資源網(wǎng)（），提供海量管理資料免費下載！21Output Unit-Level Costs.are resources sacrificed on activities performed on each individual unit of product or service e.g.Energy used by machinesMachine depreci

17、ation or repairsThe Key Question:Does the amount of the activity cost pool increase with the number of units produced?第一管理資源網(wǎng)（），提供海量管理資料免費下載！22Batch-Level Costs.are resources sacrificed on activities that are related to a batch of units rather than to each individual unit of product or service.Set-u

18、p activity costs may be driven by set-up hours.This will depend on the number set-ups carried out i.e.on the number of batches produced and the time each set-up takes.第一管理資源網(wǎng)（），提供海量管理資料免費下載！23Product-Sustaining.(or service-sustaining)costs are resources sacrificed on activities undertaken to support

19、 individual products or services.Design costs may be driven by the time spent by engineers designing the product itself and planning how it will be made.第一管理資源網(wǎng)（），提供海量管理資料免費下載！24Facility-Sustaining Costs.are resources sacrificed on activities that cannot be traced to individual products or services

20、but which support the organization as a whole.lGeneral administrationvrentvbuilding securityvCEOs salary第一管理資源網(wǎng)（），提供海量管理資料免費下載！25Different forms of ABClSimple approach-includes manufacturing overhead onlylABC system for all indirect costs-includes manufacturing and non-manufacturing costslComprehens

21、ive system-includes all product-related costs,except direct material第一管理資源網(wǎng)（），提供海量管理資料免費下載！26The Mechanics of ABCClassic Brass Ltd makes finely machined brass fittings for a variety of applications.For this company,the ultimate cost objects are:Products,Customer orders,andCustomers.One overhead cost

22、-shipping-can be traced directly to customer orders.The companys activity cost pools are shown on the next slide.第一管理資源網(wǎng)（），提供海量管理資料免費下載！27Identify and Define Activities and Activity Cost PoolsAt Classic Brass,the ABC team,selected the following activity cost pools and activity measures:第一管理資源網(wǎng)（），提供海

23、量管理資料免費下載！28Identify and Define Activities and Activity Cost Pools第一管理資源網(wǎng)（），提供海量管理資料免費下載！29Production DepartmentIndirect factory wages500,000$Factory equipment depreciation300,000 Factory utilities120,000 Factory building lease80,000 1,000,000$Shipping costs traced to customer orders40,000 General A

24、dministrative DepartmentAdministrative wages and salaries400,000 Office equipment depreciation50,000 Administrative building lease60,000 510,000 Marketing DepartmentMarketing wages and salaries250,000 Selling expenses50,000 300,000 Total overhead costs1,850,000$Overhead Costs at Classic Brass(Manufa

25、cturing and NonManufacturing)Whenever Possible,Directly Trace Overhead Costs to Activities and Cost Objects第一管理資源網(wǎng)（），提供海量管理資料免費下載！30Assign Costs to Activity Cost Pools Customer Orders Product Design Order Size Customer Relations Other TotalProduction DepartmentIndirect factory wages25%40%20%10%5%100

26、%Factory equipment depreciation20%0%60%0%20%100%Factory utilities0%10%50%0%40%100%Factory building lease0%0%0%0%100%100%Shipping costs*General Administrative DepartmentAdministrative wages and salaries15%5%10%30%40%100%Office equipment depreciation30%0%0%25%45%100%Administrative building lease0%0%0%

27、0%100%100%Marketing DepartmentMarketing wages and salaries20%10%0%60%10%100%Selling expenses10%0%0%70%20%100%Activity Cost PoolsAt Classic Brass the following distribution of resource consumption across activity cost pools is determined.*Not included because they are directly traced to customer orde

28、rs.第一管理資源網(wǎng)（），提供海量管理資料免費下載！31 Customer Orders Product Design Order Size Customer Relations Other TotalProduction DepartmentIndirect factory wages125,000$Factory equipment depreciationFactory utilitiesFactory building leaseGeneral Administrative DepartmentAdministrative wages and salariesOffice equipm

29、ent depreciationAdministrative building leaseMarketing DepartmentMarketing wages and salariesSelling expensesTotalActivity Cost PoolsAssign Costs to Activity Cost PoolsProduction DepartmentIndirect factory wages500,000$Factory equipment depreciation300,000 Factory utilities120,000 Factory building l

30、ease80,000 1,000,000$Shipping costs traced to customer orders40,000 General Administrative DepartmentAdministrative wages and salaries400,000 Office equipment depreciation50,000 Administrative building lease60,000 510,000 Marketing DepartmentMarketing wages and salaries250,000 Selling expenses50,000

31、 300,000 Total overhead costs1,850,000$Overhead Costs at Classic Brass(Manufacturing and NonManufacturing)第一管理資源網(wǎng)（），提供海量管理資料免費下載！32 Customer Orders Product Design Order Size Customer Relations Other TotalProduction DepartmentIndirect factory wages125,000$Factory equipment depreciation60,000 Factory

32、utilitiesFactory building leaseGeneral Administrative DepartmentAdministrative wages and salariesOffice equipment depreciationAdministrative building leaseMarketing DepartmentMarketing wages and salariesSelling expensesTotalActivity Cost PoolsProduction DepartmentIndirect factory wages500,000$Factor

33、y equipment depreciation300,000 Factory utilities120,000 Factory building lease80,000 1,000,000$Shipping costs traced to customer orders40,000 General Administrative DepartmentAdministrative wages and salaries400,000 Office equipment depreciation50,000 Administrative building lease60,000 510,000 Mar

34、keting DepartmentMarketing wages and salaries250,000 Selling expenses50,000 300,000 Total overhead costs1,850,000$Overhead Costs at Classic Brass(Manufacturing and NonManufacturing)Assign Costs to Activity Cost Pools第一管理資源網(wǎng)（），提供海量管理資料免費下載！33 Customer Orders Product Design Order Size Customer Relatio

35、ns Other TotalProduction DepartmentIndirect factory wages125,000$200,000$100,000$50,000$25,000$500,000$Factory equipment depreciation60,000 -180,000 -60,000 300,000 Factory utilities-12,000 60,000 -48,000 120,000 Factory building lease-80,000 80,000 General Administrative DepartmentAdministrative wa

36、ges and salaries60,000 20,000 40,000 120,000 160,000 400,000 Office equipment depreciation15,000 -12,500 22,500 50,000 Administrative building lease-60,000 60,000 Marketing DepartmentMarketing wages and salaries50,000 25,000 -150,000 25,000 250,000 Selling expenses5,000 -35,000 10,000 50,000 Total31

37、5,000$257,000$380,000$367,500$490,500$1,810,000$Activity Cost PoolsAssign Costs to Activity Cost Pools第一管理資源網(wǎng)（），提供海量管理資料免費下載！34Calculate Activity RatesDirectMaterialsDirectLaborShippingCostsOverhead CostsTracedTracedTracedCost Objects:Products,Customer Orders,Customers第一管理資源網(wǎng)（），提供海量管理資料免費下載！35Calcul

38、ate Activity RatesDirectMaterialsDirectLaborShippingCostsOrderSizeCustomerOrdersProductDesignCustomerRelationsOtherOverhead CostsCost Objects:Products,Customer Orders,CustomersFirst-Stage Allocation第一管理資源網(wǎng)（），提供海量管理資料免費下載！36Calculate Activity RatesDirectMaterialsDirectLaborShippingCostsCost Objects:P

39、roducts,Customer Orders,CustomersOrderSizeCustomerOrdersProductDesignCustomerRelationsOtherOverhead CostsFirst-Stage AllocationSecond-Stage Allocations$/MH$/Order$/Design$/CustomerUnallocated第一管理資源網(wǎng)（），提供海量管理資料免費下載！37Step 4:Calculate Activity RatesThe ABC team estimates that Classic Brass will have t

40、he following total activities for each activity cost pool.v1,000 customer orders,v200 new designs,v20,000 machine-hoursv100 customers.Now the team can compute the individual activity rates by dividing the total cost for each activity by the total activity levels第一管理資源網(wǎng)（），提供海量管理資料免費下載！38Calculate Act

41、ivity RatesAfter the first-stage allocation is complete,computation of activity rates for each activity cost pool can be done as follows:第一管理資源網(wǎng)（），提供海量管理資料免費下載！39Assign Costs to Cost ObjectsLets take a look at how our system works for just one customer Windward Yachts.Standard Stanchions(no design r

42、equired)Custom Compass Housing(requires new design)第一管理資源網(wǎng)（），提供海量管理資料免費下載！40Assign Costs to Cost Objects第一管理資源網(wǎng)（），提供海量管理資料免費下載！41Prepare Management ReportsStandard StanchionsSales13,600$Cost:Direct materials2,110$Direct labor1,850 Shipping costs180 Customer orders630 Product design-Order size3,800 8

43、,570 Product margin5,030$第一管理資源網(wǎng)（），提供海量管理資料免費下載！42Prepare Management Reports第一管理資源網(wǎng)（），提供海量管理資料免費下載！43Windward YachtsProduct margins:Standard stanchion5,030$Custom compass housing(1,114)Total product margin3,916 Less:Customer relations3,675 Customer margin241$Prepare Management Reports第一管理資源網(wǎng)（），提供海量管

44、理資料免費下載！44Product MarginsTraditionalPredetermined manufacturingoverhead rate$1,000,000 20,000 MH=$50/MH=第一管理資源網(wǎng)（），提供海量管理資料免費下載！45第一管理資源網(wǎng)（），提供海量管理資料免費下載！46Activity-based versus conventional product costslConventional costing assumes product costs are driven by volume-based cost driverslConventional c

45、osting ignores batch size-units produced in large batches consume a relatively low amount per unit of batch costs lABC can include non-manufacturing costs第一管理資源網(wǎng)（），提供海量管理資料免費下載！47ABC benefits will be greatest where.lOverhead costs are a significant proportion of total cost,and a large part of overhe

46、ad is not directly related to production volumelThe business has a diverse product range,and the individual products use of support resources differs from their use of volume-based cost drivers第一管理資源網(wǎng)（），提供海量管理資料免費下載！48ABC benefits will be greatest where.lProduction activity involves diverse batch si

47、zes and product complexity.lThere are likely to be high costs associated with making inappropriate decisions,based on inaccurate product costs.lThe cost of designing,implementing and maintaining an ABC system is relatively low due to sophisticated IT support第一管理資源網(wǎng)（），提供海量管理資料免費下載！49Impediments to in

48、troducing ABClLack of awareness of ABClUncertainty about the potential benefits from ABClFirms understand the need for change but are concerned about the extensive resource requirements to implement ABClResistance to change among managers and employeesvReading by Booth and Giacobbe第一管理資源網(wǎng)（），提供海量管理資料

49、免費下載！50Other activity-based costing issueslSources of variations in types of ABC include whethervactual(past)or budgeted costs are analysedvthe implementation is a one-off project or an on-going systemvcost objects,other than products,are included第一管理資源網(wǎng)（），提供海量管理資料免費下載！51Other activity-based costing

50、 issueslImplications of excess capacityvABC estimates the cost of resources used to perform activities to produce and sell products,which may not always equal the cost of resources suppliedvneed to account for the costs of unused capacity when budgeted costs have been used to generate activity-based

51、 product costs第一管理資源網(wǎng)（），提供海量管理資料免費下載！52Other activity-based costing issueslBehavioural issues vchange can be perceived as threateningABC may require changes in data collected and collection and analysis proceduresvbottom-up change management may give some degree of ownership of any changes caused by

52、 ABCvmanagement must be seen as committed to the change process第一管理資源網(wǎng)（），提供海量管理資料免費下載！53Limitations of activity-based costinglIf a high level of facility-level costs are allocated to products,this can lead to an arbitrary element of product costlUnitised batch,product and facility-level costs can le

53、ad to product costs that are of limited use for decision makinglThe cost of updating an ABC system can be very high,but this is needed to avoid producing outdated,irrelevant information第一管理資源網(wǎng)（），提供海量管理資料免費下載！54Activity-based costing in service organisationslABC can be difficult to implement in servi

54、ce firms,becausevhigh levels of facility costs cause problems with costing servicesvindividual activities are difficult to identify because they are non-repetitiveva non-repetitive production environment makes it difficult to identify service outputs第一管理資源網(wǎng)（），提供海量管理資料免費下載！55Activity-based management

55、(ABM)lProcess of using information from activity-based costing to analyse activities,cost drivers and performance so that customer value and profitability are improvedlCustomer valuevthe features of a product which customers are willing to pay 第一管理資源網(wǎng)（），提供海量管理資料免費下載！56Using ABM to reduce costslIdent

56、ify the major opportunities for cost reductionlDetermine the real causes of these costslDevelop a program to eliminate the causes,and,therefore,the costslIntroduce performance measures to monitor the effectiveness of cost reduction efforts第一管理資源網(wǎng)（），提供海量管理資料免費下載！57Identifying the major opportunities

57、for cost reductionlValue-added activitiesvessential to the customer,or businesslNon-value-added activitiesvcan be eliminated without detriment to either the customers or the business第一管理資源網(wǎng)（），提供海量管理資料免費下載！58Value-Added CostslA value-added cost is a cost that customers perceive as adding value,or uti

58、lity,to a product or service e.g.for a computer:Adequate memory Pre-loaded softwareReliabilityEasy-to-use keyboards第一管理資源網(wǎng)（），提供海量管理資料免費下載！59Non-value-added costslA non-value-added cost is a cost that customers do not perceive as adding value,or utility,to a product or service.vCost of expeditingvRew

59、orkvRepairvMaterial inspectionvIdle time第一管理資源網(wǎng)（），提供海量管理資料免費下載！60Activity-Based Management lABM can be used forlProduct pricing and mix decisionslCost reduction and process improvement decisionslDesign decisions第一管理資源網(wǎng)（），提供海量管理資料免費下載！61Product Pricing and Mix DecisionslABC gives management insight i

60、nto the cost structures for making and selling a diverse range of products.lIt provides more accurate product cost information and more detailed information on costs of activities and the drivers of those costs.第一管理資源網(wǎng)（），提供海量管理資料免費下載！62Cost Reduction and Process Improvement DecisionslManufacturing a

61、nd distribution personnel use ABC systems to focus on cost reduction efforts.lManagers set cost-reduction targets in terms of reducing the cost per unit of the cost-allocation base.第一管理資源網(wǎng)（），提供海量管理資料免費下載！63Design DecisionslManagement can identify and evaluate new designs to improve performance by ev

62、aluating how product and process designs affect activities and costs.lCompanies can work with their customers to evaluate the costs and prices of alternative design choices.第一管理資源網(wǎng)（），提供海量管理資料免費下載！64Just-In-Time Production SystemslJust-in-time(JIT)production systems take a“demand pull”approach in whi

63、ch goods are only manufactured when needed to satisfy customer orders.lDemand triggers each step of the production process,starting with customer demand for a finished product at the end of the process,to the demand for direct materials at the beginning of the process.第一管理資源網(wǎng)（），提供海量管理資料免費下載！65Major

64、Features of a JIT SystemlThe five major features of a JIT system are:lOrganizing production in manufacturing cellslHiring and retaining multi-skilled workerslEmphasizing total quality managementlReducing manufacturing lead time and setup timelBuilding strong supplier relationships第一管理資源網(wǎng)（），提供海量管理資料免

65、費下載！66Key features of JIT production1.A pull method of co-ordinating production which uses kanbans.Kanban is the Japanese term for card or visible record.Nothing is manufactured at any stage until its need is signalled from the subsequent stage,via a kanban.2.Simplified production processes.Non-valu

66、e-added activities are identified and removed.第一管理資源網(wǎng)（），提供海量管理資料免費下載！67Key features of JIT production3.Purchase of materials,and manufacture of sub-assemblies and products in small lotsBatch sizes tend to be small and inventory levels are low.4.Quick and inexpensive setups of production machinery.To produce in small batches setup times must be reduced.第一管理資源網(wǎng)（），提供海量管理資料免費下載！68Key features of JIT production5.High-quality levels for raw materials,components and finished products6.Effective prevent