管理會(huì)計(jì)（雙語）課后習(xí)題解析：AKMY 6e ch03_SM

1、Chapter 3Using Costs in Decision MakingQUESTIONS3-1Cost information is used in pricing, product planning, budgeting, performance evaluation, and contracting. Examples of specific uses of cost information include deciding whether to introduce a new product or discontinue an existing product (given th

2、e price structure), assessing the efficiency of a particular operation, and assessing the cost of serving customer segments.3-2Variable costs are costs that increase proportionally with changes in the activity level of some variable. Fixed costs are costs that in the short run do not vary with a spe

3、cified activity. Fixed costs depend on how much of the resource (capacity) is acquired, rather than on how much is used. 3-3Contribution margin per unit, which is the difference between revenue per unit and variable cost per unit, is the contribution that each unit makes to covering fixed costs and

4、generating a profit. The contribution margin is therefore an important component of the equation to determine the breakeven point and to understand the effect on profit of proposed changes, such as changes in sales volume in response to changes in advertising or sales prices. 3-4Contribution margin

5、per unit is the difference between revenue per unit and variable cost per unit. The contribution margin per unit indicates how much the total contribution margin will increase with an additional unit of sales. The contribution margin ratio expresses similar ideas, but as a percentage of sales dollar

6、s. Specifically, the contribution margin ratio is the total contribution margin divided by total sales dollars (or contribution margin per unit divided by sales price per unit), and indicates how much the total contribution margin increases with an additional dollar of sales revenue. 3-5In evaluatin

7、g whether a business venture will be profitable, the breakeven point is the volume at which the profit equals zero, that is, revenues equal total costs.3-6A mixed cost is a cost that has a fixed component and a variable component. For example, utilities bills may include a fixed component per month

8、plus a variable component that depends on the amount of energy used. A step variable cost increases in steps as quantity increases. For example, one supervisor may be hired for every 20 factory workers. Mixed costs and step variable costs both have elements of fixed and variable costs. However, mixe

9、d costs have distinct fixed and variable components, with fixed costs that are constant over a fairly wide range of activity (for a given time period) and variable costs that vary in proportion to activity. Step variable costs are fixed for a fairly narrow range of activity and increase only when th

10、e next step is reached.3-7Step variable costs are fixed for a fairly narrow range of activity and increase when the next step is reached. For example, one supervisor may be hired for every 20 factory workers. Fixed costs are costs that in the short run do not vary with a specified activity for a wid

11、e range of activity. For example, factory rent per month would likely remain unchanged as production increased or decreased, even if by large amounts.3-8Incremental cost is the cost of the next unit of production and is similar to the economists notion of marginal cost. In a manufacturing setting, i

12、ncremental cost is often defined as a constant variable cost of a unit of production. However, in some situations, the variable cost of a unit of production may be more complicated. For example, the variable cost of labor per unit may decrease over time if workers become more efficient (a learning e

13、ffect. Alternatively, the variable cost of labor per unit will change during overtime hours if workers receive an overtime premium (commonly 50%). Finally, some costs exhibit step-variable behavior, as when one supervisor can supervise a quantity of employees but an additional supervisor is needed b

14、eyond a certain number of employees. 3-9In evaluating the different alternatives from which managers can choose, it is better to focus only on the relevant costs that differ across different alternatives because it does not divert the managers attention with irrelevant facts. If some costs remain th

15、e same regardless of what alternative is chosen, then those costs are not useful for the managers decisions, as they are not affected by the decision. Therefore, it is better to omit them from the cost analysis used to support the decision. Moreover, resources are not expended to find or prepare irr

16、elevant information.3-10Sunk costs are costs that are based on a previous commitment and cannot be recovered. For example, depreciation on a building reflects the historical cost of the building, which is a sunk cost. Therefore, they are not relevant costs for the decision.3-11The general principal

17、is that sunk costs are not relevant costs. But, some managers may consider sunk costs to be relevant because they may be concerned about how others will perceive their original decision to incur these costs, and may want to cover up their initial poor judgment. Managers may also feel that they do no

18、t want to waste the sunk costs by giving up on the possibility of some benefit from the invested funds, or may continue to believe in potential success despite overwhelming evidence to the contrary. Also, managers may be embarrassed and unwilling to admit they made a mistake.3-12No, fixed cost are n

19、ot always irrelevant. For example, in comparing the status quo and a proposal to substantially increase the quantity of goods or services provided, additional fixed costs (that is, costs not proportional to volume) may be incurred to provide the increased quantity. Such costs might include a large e

20、xpenditure for more equipment or expanded factory facilities.3-13An opportunity cost is the maximum value forgone when a course of action is chosen. 3-14Yes, avoidable costs are relevant because they can be eliminated when, for example, a part, product, product line, or business segment is discontin

21、ued.3-15In the context of a make or buy decision, fixed costs such as production engineering staff salaries are relevant if these costs can be eliminated by assigning the staff to other tasks, or by laying off the engineers not required when a part is outsourced. If it is possible to find an alterna

22、tive use for the facilities made available because of the elimination of a product or a component, the associated fixed costs also are relevant. Conversely, fixed costs that cannot be eliminated or used for other productive purposes are not relevant for the decision. For example, if factory faciliti

23、es would remain idle if the company buys from outside, then the associated costs are not relevant for the decision.3-16There are several qualitative considerations that must be evaluated in a make-or-buy decision. For example, one must question whether the outside supplier has quoted a lower price t

24、o obtain the order, and plans to increase the price. Also, the reliability of the supplier in meeting the required quality standards and in making deliveries on time is important.3-17When a decision to outsource frees up space to produce an alternative product, then the contribution margin on the al

25、ternative product is a relevant opportunity cost for the “make” alternative in a make-or-buy decision. 3-18A difficulty that arises with respect to revenue when analyzing whether to drop a product or department is whether sales by one organizational unit can affect sales in another organizational un

26、it. A difficulty that arises with respect to cost analysis is that many product costs, such as machine and factory depreciation, are the result of sunk costs that often remain in whole or in part after the product is discontinued. The analysis of what costs are avoided when a product is dropped can

27、be difficult due to the closing of plants, severance pay and environmental cleanup costs.3-19The answer depends on the time frame and context considered. For example, a one-time order that covers variable production (and selling costs) is advantageous if capacity cannot be changed in the short run a

28、nd excess capacity exists. Also, for given capacity with one scare resource, maximizing contribution margin per unit of scarce resource will maximize profit. In the long run, prices must cover all their costs, both fixed and variable, in order for the firm to survive.3-20No. Products should be ranke

29、d by the contribution margin per unit of the constrained resource rather than by the contribution margin per unit of the product.3-21Yes. When capacity is fixed in the short run, the firm may need to sacrifice the production of some profitable products to make capacity available for a new order. The

30、 contribution margin on the production of profitable products sacrificed for a new order is an opportunity cost that must be considered to evaluate the profitability of the new order.3-22The three components of a linear program are the objective function, the decision variables, and the constraints.

31、EXERCISES3-23(a)Fixed(b) Variable(c) Variable(d) Fixed(e) Fixed(f) Variable(g) Variable (h) Fixed or variable (if number of production workers can vary in the short run); (i) Fixed(j) Variable (k) Fixed(l) Variable3-24(a)Variable (b) Fixed(c) Fixed or variable (if number of billing clerks can vary i

32、n the short run)(d) Fixed (e) Fixed(f) Variable (g) Fixed(h) Fixed (with respect to a unit of product, as stated in the problem. However, gasoline costs will vary with miles driven.)3-25Burger ingredientsVariableCooks wagesFixedServers wagesFixedJanitors wagesFixedDepreciation on cooking equipmentFi

33、xedPaper supplies (wrapping, napkins, and supplies)VariableRentFixedAdvertisement in local newspaperFixed3-26(a)Contribution margin per unit = $1,000 $500 $100 = $400Contribution margin ratio = (Contribution margin)/Sales = $400/$1,000 = 0.40(b)Let X = the number of units sold to break evenSales rev

34、enue Costs = Income(Price Quantity) Variable costs Fixed costs = Income$1,000X $600X $3,500,000 = $0$400X $3,500,000 = 0X = 8,750 units(c)Because the variable cost per unit will decrease, the contribution margin per unit will increase. The breakeven point equals (fixed costs)/(contribution margin),

35、so the breakeven point will decrease. Specifically, the new contribution margin per unit is $1,000 $450 $100 = $450 and the new breakeven point is $3,500,000/$450 = 7,778 units (rounded).3-27(a)Let P = charges per patient-day.(5,400 P) - (5,400 $500) - $2,000,000) = 05,400 (P - $500) = $2,000,000P -

36、 $500 = $2,000,000/5,400 = $370.37P = $870.37(b)Let X = the average number of patient days per month necessary to generate a target profit of $45,000 per monthRevenue Costs = Income(Price Quantity) Variable costs Fixed costs = Income$2,000X $500X $2,000,000 = $45,000$1,500X = $2,000,000 + $45,000 =

37、$2,045,000X = 1,363 patient days (rounded)3-28(a)Contribution margin per unit = $30 $19.50 = $10.50Contribution margin ratio = (Contribution margin)/Sales = $10.50/$30 = 0.35(b)Let X = the number of units sold to break evenSales revenue Costs = Income(Price Quantity) Variable costs Fixed costs = Inc

38、ome$30X $19.50X $147,000 = $0$10.50X $147,000 = 0X = 14,000 units(c)Let X = the number of units sold to generate revenue necessary to earn pretax income of 20% of revenueSales revenue Costs = Income(Price Quantity) Variable costs Fixed costs = Income$30X $19.50X $147,000 = 0.2 $30X$10.50X $147,000 =

39、 $6XX = 32,667 units (rounded)Desired revenue = $30X = $30 32,667 = $980,010Alternatively, let R = sales revenue necessary to earn pretax income of 20% of revenueSales revenue Variable costs Fixed costs = IncomeR 0.65R $147,000 = 0.2R R = $147,000/0.15 = $980,000(d)Let X = the number of units sold t

40、o generate after-tax profit of $109,200 (Before-tax income) (1 0.35) = $109,200 Before-tax income = $109,200/0.65 = $168,000$30X $19.50X $147,000 = $168,000$10.50X = $315,000X = $315,000/$10.50 = 30,000 units(e)Let Y = necessary increase in sales unitsIncremental sales revenue Incremental variable c

41、osts Incremental fixed costs = $0$30Y $19.50Y $38,500 = $0Y = 3,667 units (rounded)3-29(a)Let R = sales dollars necessary for a before-tax target profit of $250,000The contribution margin ratio = ($1,260,000 $570,000)/$1,260,000 = 0.547619 (rounded).Sales revenue Variable costs Fixed costs = IncomeC

42、ontribution margin Fixed costs = Income0.547619 R $480,500 = $250,000 R = ($250,000 + $480,500)/0.547619R = $1,333,956.60(c) Let R = sales dollars necessary to break evenContribution margin Fixed costs = 00.547619 R $480,500 = $0 R = $480,500/0.547619R = $877,434.853-30The sales mix in units is 3/5

43、Domestic and 2/5 International. The Domestic CM = $50 $30 = $20; the International CM = $40 $16 = $24Let X = total number of units that must be sold in the International market to earn $200,000 before taxes, assuming the stated sales mixTotal CM Fixed costs = $200,000($20 1.5X) + $24X $5,000,000 $1,

44、280,000= $200,000$54X = $6,480,000 X = $6,480,000/$54 = 120,000 units in the International market1.5 X = 180,000 units in the Domestic market Equivalently, one can compute a weighted average unit CM: (3/5) ($20) + (2/5) ($24) = $21.60Let Y = total number of units that must be sold to earn $200,000 b

45、efore taxes, assuming the stated sales mixTotal CM Fixed costs = $200,000$21.60Y $5,000,000 $1,280,000= $200,000$21.60Y = $6,480,000 Y = 300,000 units, which consists of 3/5 or 180,000 units in the Domestic market and 2/5 or 120,000 units in the International market3-31(a)AlligatorsDolphinsTotalUnit

46、s sold140,00060,000200,000Sales mix percentage*.7.3Weighted average*Weighted average*Sum of weighted averagesSales price per unit$20.00$14.00$25.00$7.50$21.50Variable costs per unit$ 8.00$ 5.60$10.00$3.00$ 8.60Unit CM$12.00$ 8.40$15.00$4.50$12.90 * 140,000/(140,000 + 60,000) = .7; 60,000/(140,000 +

47、60,000) = .3* $20 .7 = $14; $8 .7 = $5.60; $25 .3 = $7.50; $10 .3 = $3Breakeven units = $1,290,000/$12.90 = 100,000 units. Of these, 100,000 .7 = 70,000 will be alligators and 100,000 .3 = 30,000 will be dolphins.(b)AlligatorsDolphinsTotalUnits sold60,000140,000200,000Sales mix percentage*.3.7Weight

48、ed average*Weighted average*Sum of weighted averagesSales price per unit$20.00$6.00$25.00$17.50$23.50Variable costs per unit$ 8.00$2.40$10.00$ 7.00$ 9.40Unit CM$12.00$3.60$15.00$10.50$14.10 * 60,000/(140,000 + 60,000) = .3; 140,000/(140,000 + 60,000) = .7 * $20 .3 = $6; $8 .3 = $2.40; $25 .7 = $17.5

49、0; $10 .7 = $7Breakeven units = $1,290,000/$14.10 = 91,489.36, which we round up to 91,490 units. Of these, 91,490 .3 = 27,447 will be alligators and 91,490 .7 = 64,043 will be dolphins.(c)In part (b), the sales mix percentage for the higher-CM product (dolphins) is greater than in part (a). Consequ

50、ently, fewer total units are required to break even (91,490 in part (b) versus 100,000 in part (a). 3-32ProductTotal Sales WithoutSpecial PromotionTotal Sales WithSpecial PromotionDifferenceHamburgers$1.09 20,000 = $21,800$0.69 24,000 = $16,560($5,240)ChickenSandwiches1.29 10,000 = $12,9001.29 9,200

51、 = $11,868(1,032)French fries0.89 20,000 = $17,8000.89 22,400 = $19,9362,136 ($4,136)ProductVariable Costs Without Special PromotionVariable Costs With Special PromotionDifferenceHamburgers$0.51 20,000 = $10,200$0.51 24,000 = $12,240($2,040)ChickenSandwiches0.63 10,000 = $6,3000.63 9,200 = $5,796504

52、French fries0.37 20,000 = $7,4000.37 22,400 = $8,288(888)($2,424)Decrease in sales with special promotion $4,136Increase in variable costs with special promotion 2,424Decrease in contribution margin with special promotion $6,560Incremental advertising expenses with special promotion 4,500Decrease in

53、 profit with special promotion($11,060)Therefore, Andrea should not go ahead with this special promotion. A countervailing argument is the creation of new customers who may stay with the firm and generate additional contribution margin in the future.3-33(a)Healthy Hearth has sufficient excess capaci

54、ty to handle the one-time (short-run) order for 1,000 meals next month. Consequently, the analysis focuses on incremental revenues and costs associated with the order:Incremental revenue per meal$3.50 Incremental cost per meal3.00 Incremental contribution margin per meal$0.50 Number of meals 1,000 I

55、ncrease in contribution margin and operating income$ 500 Healthy Hearth will be better off by $500 with this one-time order. Note that total fixed costs remain unchanged, so it is sufficient to evaluate the change in the contribution margin. If the order had been long-term, Healthy Hearth would need to evalua