成本与管理会计亨格瑞第13版英文版CA05

2019/8/231Activity-BasedCostingandActivity-BasedManagementCHAPTER52019/8/232LEARNINGOBJECTIVESExplainhowbroadaveragingundercostsandovercostsproductsorservicesPresentthreeguidelinesforrefiningacostingsystemDistinguishbetweensimpleandactivity-basedcostingsystemsDescribeafour-partcosthierarchyCostproductsorservicesusingactivity-basedcostingExplainhowactivity-basedcostingsystemsareusedinactivity-basedmanagementCompareactivity-basedcostingsystemsanddepartmentcostingsystemsEvaluatethecostsandbenefitsofimplementingactivity-basedcostingsystems2019/8/233StructureofLectureUnder-andover-costing–whyithappens?ActivityBasedCosting(ABC)IndicatorsofneedforABCABCsystemDifferencebetweenABCandTraditionalProductCostsActivityBasedManagement(ABM)Valueandnon-valueaddedcosts2019/8/234LEARNINGOBJECTIVE1Explainhowbroadaveragingundercostsandovercostsproductsorservices2019/8/235BackgroundEasytotraceDirectmaterialsanddirectlaborcostsOverheadcannotbetracedeasilyandmustbeallocatedwithestimates.RecallthatFactoryOverheadisappliedtoproductioninarationalandsystematicmanner,usingsometypeofaveraging.Thereareavarietyofmethodstoaccomplishthisgoal.SimpleMethodsComplexMethodsUnrealisticRealistic2019/8/236entreedessertdrinkstotalemma110415james2081442jessica154827matthew144624total601632108average154827BroadAveragingandCross-subsidizationP1102019/8/237BroadAveragingandCross-subsidization,conts.Historically,firmsproducedalimitedvarietyofgoodswhiletheirindirectcostswererelativelysmall.Allocatingoverheadcostswassimple:usebroadaveragestoallocatecostsuniformlyregardlessofhowtheyareactuallyincurredTheuseofbroadaveragesinallocatingindirectcostscanhaveanumberofadverseconsequences.Traditionalproduct-costingmethodsuseasingleindirectcostratetoallocatecoststoallproducts.2019/8/238BroadAveragingandCross-subsidization,conts.Differentproductsconsumeactivitiesatdifferentrates,traditionalcostingdoesnotrecognizethesedifferences.Peanut-buttercostingusesbroadaveragestoassign(orspread)costsuniformlytocostobjects.Theresultcanbeundercostingorovercostingofproducts.Overcosting–aproductconsumesalowlevelofresourcesbutisallocatedhighcostsperunit(Emma’sdinner)Undercosting–aproductconsumesahighlevelofresourcesbutisallocatedlowcostsperunit(James’sdinner)2019/8/239BroadAveragingandCross-subsidization,conts.Whenacompanyhasasituationinwhichundercostingorovercostingofproductsoccurs,thisisreferredtoasproduct-costcross-subsidization.P110Theresultsofovercostingoneproductandundercostinganother.Theovercostedproductabsorbstoomuchcost,makingitseemlessprofitablethanitreallyis.Theundercostedproductisleftwithtoolittlecost,makingitseemmoreprofitablethanitreallyis.2019/8/2310TheNeedforABCLinemanagersdonotbelievetheproductcostsreportsMarketingdoesnotusecostsreportsforpricingdecisionsProduct-lineprofitmarginsarehardtoexplainSalesareincreasing,butprofitsaredeclining.SomeproductsthathavereportedhighprofitmarginsarenotsoldbycompetitorsDirectlaborisasmallpercentageoftotalcosts2019/8/2311LEARNINGOBJECTIVE2Presentthreeguidelinesforrefiningacostingsystem2019/8/2312RationaleforRefiningCostingSystemIncreaseinproductdiversityAdvancesinITCompetitioninmarketsIncreaseinIndirectCosts•Strategicdecision•Pricedecision•Marketdecision•Maketracemorecost-effective•Providemoredata•MultiplecostdriverpoolsAdvanceinproductandprocesstechnologyincreaseindirectcost,lowerdirectcosts•Customizedproducts•DifferentiatefromcompetitorsGuidelinesforRefiningacostsystems1.Direct-costtracingclassifyasmanyofthetotalcostsasdirectcostsasiseconomicallyfeasible.2.Indirect-costpoolsexpandthenumberofcostpoolsuntileachofthesepoolsishomogeneous.3.Cost-allocationbasisidentifythepreferredcost-allocationbaseforeachindirect-costpool.2019/8/2313RefiningaCostingSystemArefinedcostsystemreducestheuseofbroadaveragesforassigningcoststoresources.Therearethreeprincipalreasonsthathaveacceleratedthedemandforsuchrefinements.P115Increaseinproductdiversity.Thegrowingdemandforcustomizedproductshasledtoproductdiversitywiththeresultthatproductsdemanddifferinglevelsofresources.2019/8/2314RefiningaCostingSystem,contsArefinedcostsystemreducestheuseofbroadaveragesforassigningcoststoresources.Therearethreeprincipalreasonsthathaveacceleratedthedemandforsuchrefinements.Increaseinindirectcosts.Withmoderntechnology,companieshaveexperiencedadecreaseindirectcostswitharesultingincreaseinindirectcosts.Competitioninproductmarkets.Marketshavebecomemorecompetitive,forcingmanagerstoobtainmoreaccuratecostinformationtohelpthemmakestrategicdecisions.2019/8/2315RefiningaCostingSystem,contsThreeguidelinesarepresentedforrefiningacostingsystem.Direct-costtracing.Identifyasmanydirectcostsasiseconomicallyfeasible.Indirect-costpools.Expandthenumberofcostpoolssothateachpoolissomewhathomogeneous.Eachcostinthepoolhasasimilarcause-and-effectrelationshipwithasinglecostdriver.Cost-allocationbases.Thecostdriverservesasthecostallocationbaseforeachhomogeneousindirect-costpool.2019/8/2316LEARNINGOBJECTIVE3Distinguishbetweensimpleandactivity-basedcosting