成本與管理會(huì)計(jì) 亨格瑞 第13版 英文版 CA02

1、2022-3-281CHAPTER 2An Introduction to Cost An Introduction to Cost Terms and PurposesTerms and Purposes2022-3-282LEARNING OBJECTIVESuDefine and illustrate a cost objectDefine and illustrate a cost objectuDistinguish between direct costs and indirect costsDistinguish between direct costs and indirect

2、 costsuExplain variable costs and fixed costsExplain variable costs and fixed costsuInterpret unit costs cautiously Interpret unit costs cautiously uDistinguish among manufacturing companies, Distinguish among manufacturing companies, merchandising companies, and service-sector companiesmerchandisin

3、g companies, and service-sector companiesuDescribe the three categories of inventories commonly Describe the three categories of inventories commonly found in manufacturing companiesfound in manufacturing companiesuDistinguish Distinguish inventoriableinventoriable costs from period costs costs from

4、 period costsuExplain why product costs are computed in different ways Explain why product costs are computed in different ways for different purposesfor different purposesuDescribe a framework for cost accounting and cost Describe a framework for cost accounting and cost managementmanagement2022-3-

5、283uLearning objective 1Learning objective 1uDefine and illustrate a cost objectDefine and illustrate a cost object2-32022-3-284 Basic Cost TerminologyuCost Cost Sacrificed resource to achieve a specific objectiveSacrificed resource to achieve a specific objectiveIt is usually measured as the moneta

6、ry amount It is usually measured as the monetary amount that must be paid to acquire goods and services.that must be paid to acquire goods and services.2-42022-3-285 Basic Cost TerminologyuActual Cost Actual Cost A cost that has occurred, A cost that has occurred, (a historical cost) (a historical c

7、ost) uBudgeted Cost Budgeted Cost A predicted costA predicted costuOpportunity CostOpportunity CostThe next best choice foregone.The next best choice foregone. uCost Object Cost Object Anything Anything for which a separate measurement of for which a separate measurement of costs is desiredcosts is

8、desired2-52022-3-286Cost Object Examples at BMWCost Object Examples at BMWCost ObjectIllustrationProductProductBMW X 5 sports activity vehicleBMW X 5 sports activity vehicleServiceServiceDealer-support telephone hotlineDealer-support telephone hotlineProjectProjectR&D project on DVD system R&

9、;D project on DVD system enhancementenhancementCustomerCustomerHerb Chambers Motors, a dealer that Herb Chambers Motors, a dealer that purchases a broad range of BMW vehiclespurchases a broad range of BMW vehiclesActivityActivitySetting up production machinesSetting up production machinesDepartmentD

10、epartmentEnvironmental, Health & SafetyEnvironmental, Health & Safety2022-3-287 Cost And Cost Terminology2-7via2022-3-288BASIC COST TERMINOLOGY,CONTS.uCost Accumulation describes the process of accumulating costs in some organized manner through the accounting system.uFollowing accumulation,

11、 costs are assigned to the chosen cost object. involves tracing and allocating costsTracing：accumulated costs with a direct relationship to the cost object Allocating：accumulated costs with an indirect relationship to the cost object 2022-3-289uLearning objective 2Learning objective 2uDistinguish be

12、tween direct costs and indirect Distinguish between direct costs and indirect costscosts2-92022-3-2810 Direct Costs and Indirect CostsuDirect costs of a cost object are those that are Direct costs of a cost object are those that are related to a given cost object (product, related to a given cost ob

13、ject (product, department, etc.) and that can be department, etc.) and that can be traced traced to it in to it in an economically feasible way.an economically feasible way.uIncludes:Includes:PartsPartsAssembly line wagesAssembly line wagesuCost-TracingCost-Tracing describes the assignment of direct

14、 describes the assignment of direct costs to the particular cost object.costs to the particular cost object.2022-3-2811Indirect CostsuIndirect Costs Indirect Costs Cannot be conveniently or economically traced Cannot be conveniently or economically traced (tracked) to a cost object. Instead of being

15、 (tracked) to a cost object. Instead of being traced, these costs are allocated to a cost object traced, these costs are allocated to a cost object in a rational and systematic mannerin a rational and systematic manneruIndirect Costs Includes:Indirect Costs Includes:ElectricityElectricityRentRentPro

16、perty taxesProperty taxes2-112022-3-2812Types of product (manufacturing) costsDirect MaterialsCan be physically and directly associated with manufacturing the finished product.Direct LaborThe work of factory employees that can be physically and directly associated with converting raw materials into

17、finished goods.Indirect Manufacturing factory costs Not traceable to the product. known as Manufacturing Overhead costs or Factory Overhead costsBasically everything but direct materials and direct labor.2-122022-3-28132-132022-3-2814useveral factors that affect the classification of costs as direct

18、 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.2022-3-2815uSeveral factors that affect the classification of costs as direct or indirect.P25Ea

19、se 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 readily traced. Direct and Indirect Costs,conts.2022-3-2816uLearning objective 3

20、Learning objective 3uExplain variable costs and fixed costsExplain variable costs and fixed costs2-162022-3-2817 Cost behavior and Classifications2-17 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

21、costs remain unchanged when activity changes.2022-3-28182022-3-2819 Cost behavioruVariable costs Variable costs are constant on a per-unit basis. are constant on a per-unit basis. If a product takes 5 pounds of materials each, it If a product takes 5 pounds of materials each, it stays the same per u

22、nit regardless of whether stays the same per unit regardless of whether one, ten, or a thousand units are produced.one, ten, or a thousand units are produced.uFixed costs Fixed costs change inversely with the level of production.change inversely with the level of production.As more units are produce

23、d, the same fixed cost As more units are produced, the same fixed cost is spread over more and more units, reducing is spread over more and more units, reducing the cost per unit.the cost per unit.2-192022-3-2820FIXED COSTS AND VARIABLE COSTS ,CONTS.Variable Costs ,P262022-3-2821Variable Costsuy = y

24、 = bxbx, where y = total cost, b = variable cost per , where y = total cost, b = variable cost per unit and x = number of units.unit and x = number of units.uCosts that vary proportionately with changes in Costs that vary proportionately with changes in the cost driver.the cost driver.A Variable Cos

25、tNo of units producedCost2022-3-2822Total Variable Cost Total Variable Cost ExampleExample Your total long distance Your total long distance telephone bill is based telephone bill is based on how many minutes on how many minutes you talk.you talk.Minutes TalkedTotal Long DistanceTelephone BillMinute

26、s TalkedPer MinuteTelephone ChargeVariable Cost Per Variable Cost Per Unit ExampleUnit Example The cost per long The cost per long distance minute talked distance minute talked is constant. For is constant. For example, 5 cents per example, 5 cents per minute.minute.2022-3-2823FIXED COSTS AND VARIAB

27、LE COSTS ,CONTS.Fixed Costs,P272022-3-2824 Fixed Costsuy = a, where a is the y intercept and represents the y = a, where a is the y intercept and represents the cost level regardless of volume.cost level regardless of volume.uEgEg, depreciation, rates & executive salaries., depreciation, rates &

28、amp; executive salaries.Fixed cost02000400060008000100001200012345678No of units producedy costFixed Cost Per Unit ExampleNumber of Local Calls Monthly Basic Telephone Bill per Local CallThe average cost per local call decreases as more local calls are made.2022-3-2825 Cost behavior summarized2-25Be

29、havior of Cost (within the relevant range)CostIn TotalPer UnitVariableTotal variable cost changesVariable cost per unit remainsas activity level changes.the same over wide rangesof activity.FixedTotal fixed cost remainsAverage fixed cost per unit goesthe same even when thedown as activity level goes

30、 up. activity level changes.2022-3-2826FIXED COSTS AND VARIABLE COSTS ,CONTS.uA 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 the cost driver and the cost incurred. 2022-3-2827FIXED COSTS AND VARIABLE

31、 COSTS ,CONTS. uRelevant 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 differently. This is not a concept that can be determined from a

32、 textbook.Observation of the actual costs must be done in order to determine this range. 2022-3-28282-282022-3-2829Multiple Classification of CostsMultiple Classification of CostsuCosts may be classified as:Costs may be classified as:Direct / Indirect, and Direct / Indirect, and Variable / FixedVari

33、able / FixeduThese multiple classifications give rise to These multiple classifications give rise to important cost combinations:important cost combinations:Direct & VariableDirect & VariableDirect & FixedDirect & FixedIndirect & VariableIndirect & VariableIndirect & Fixe

34、dIndirect & Fixed2022-3-28302-302022-3-2831uLearning objective 4Learning objective 4uInterpret unit costs cautiously Interpret unit costs cautiously 2-312022-3-2832 UNIT COSTS AND TOTAL COSTS uUnit costs (also called average costs) are normally used in making decisions such as product mix and pr

35、icing. P30uHowever, managers should usually think in terms of total costs for most decisions.Fixed costs, when expressed on a unit basis can be misleading. 2022-3-283333UNIT COSTS AND TOTAL COSTS,CONTS.uAvoid using the higher unit cost when production level changes.2022-3-2834uLearning objective 5Le

36、arning objective 5u Distinguish among manufacturing Distinguish among manufacturing companies, merchandising companies, companies, merchandising companies, and service-sector companiesand service-sector companies2-342022-3-2835 DIFFERENT TYPES OF FIRMS uManufacturing-sector companies purchase materi

37、als and components and convert them into finished products. p32uMerchandising-sector companies purchase and sell tangible products without changing their basis form. These companies are known as retailers.uService-sector companies provide services (intangibles). However, there is frequently a tangib

38、le aspect to the service. 2022-3-2836Manufacturing2-36Manufacturing companiespurchase materials and components andconvert them into finished goods.A manufacturing company must also develop, design, market, and distribute its products.create and sell their own products2022-3-2837Merchandising2-37Merc

39、handising companiespurchase and then sell tangible productswithout changing their basic duct resellers2022-3-2838Service2-38Service companiesprovide services or intangibleproducts to their customers.Labor is the most significant cost category.2022-3-2839uLearning objective 6Learning objectiv

40、e 6u Describe the three categories of Describe the three categories of inventories commonly found in inventories commonly found in manufacturing companiesmanufacturing companies2-392022-3-2840 Types of Inventory, Types of Inventory, InventoriableInventoriable Costs ,andCosts ,and Period CostsPeriod

41、CostsuTypes of InventoryTypes of InventoryDirect materials inventoryDirect materials inventoryWork-in-Process inventoryWork-in-Process inventoryFinished good inventoryFinished good inventory2022-3-2841Types of inventories2-41Resources in stock and available for useProducts started but not yet comple

42、ted. Often abbreviated as WIPProducts completed and ready for sale2022-3-2842Types of inventoriesuMerchandising companies purchase products in their completed form and do not make changes in their basic form. An inventory account for a merchandising company is called Merchandise Inventory, or simply

43、 Inventory. 2-422022-3-2843uLearning objective 7Learning objective 7u Distinguish Distinguish inventoriableinventoriable costs from costs from period costsperiod costs2-432022-3-2844INVENTORIABLE COSTS AND PERIOD COSTS uInventoriable costs are all costs of a product that are considered assets on the

44、 balance sheet.P33These costs are 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 ar

45、e sold and transferred to Cost of Goods Sold.2022-3-2845INVENTORIABLE COSTS AND PERIOD COSTS,CONTS.uPeriod 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

46、 as incurred2022-3-2846 Cost FlowsThree kinds conditionThree kinds condition2022-3-2847 Cost FlowsPeriod costs are all costs in the incomestatement other than cost of goods sold.2022-3-284848直接人工制造費(fèi)用直接材料管理費(fèi)用財(cái)務(wù)費(fèi)用銷售費(fèi)用期間成本變動(dòng)性制造費(fèi)用固定性制固定性制造費(fèi)用造費(fèi)用固定成本期間成本產(chǎn)品成本變動(dòng)成本產(chǎn)品成本制造成本按成本習(xí)性成本會(huì)計(jì)管理會(huì)計(jì)Inventoriable Costs and

47、 Period Costs,conts. 2022-3-2849Illustration 1-4Beginning Work In Process Inventory+ Total Current Manufacturing Costs=Total Cost Of Work In ProcessTotal Cost Of Work In Process-Ending Work In Process Inventory= Cost Of Goods ManufacturedFormula OfFormula Of Cost FlowsCost Flows2022-3-28502022-3-285

48、12022-3-2852Cost Of Goods Manufactured2-52Calculates the cost of Direct Materials UsedAccumulates the three product costs for the current periodAdjusts the current period manufacturing costs to account for units actually completed2022-3-2853Income Statement2-53Figure carries forward from the Schedul

49、e of Cost of Goods ManufacturedPeriod Costs are expensed as incurred2022-3-28542022-3-28552022-3-2856 PRIME COSTS AND CONVERSION COSTSuPrime costs is a term used to describe all direct costs or direct materials plus direct labor. P38Prime costs=$76000+$9000=$85000uConversion costs is direct labor pl

50、us factory overhead. it is the cost of converting the materials into a finished product. Conversion costs=$20000+$9000=$290002022-3-2857Measuring cost requires judgmentuTwo typical costuOvertime premium Overtime premium of direct labor as overhead Overtime premium of direct labor as overhead cost ra

51、ther than direct cost for its random.cost rather than direct cost for its random.If overtime not random, regard as direct cost.If overtime not random, regard as direct cost.uIdle time Overhead costs is wages paid for lack of orders, Overhead costs is wages paid for lack of orders, machine breakdowns

52、, material shortages, poor machine breakdowns, material shortages, poor scheduling and so onscheduling and so on. .2022-3-2858uLearning objective 8Learning objective 8u Explain why product costs are computed in Explain why product costs are computed in different ways for different purposesdifferent

53、ways for different purposes2-582022-3-28592-59 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 applications2022-3-28602-602022-3-2861uLearning objecti

54、ve 9Learning objective 9u Describe a framework for cost accounting Describe a framework for cost accounting and cost managementand cost management2-612022-3-2862THREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGEMENTuCalculating the cost of products, services, and other cost objects. Managers u

55、se this information in a variety of ways to formulate strategy and make various decisions. 2022-3-2863THREE COMMON FEATURES OF COST ACCOUNTING AND COST MANAGEMENT.CONTS.uObtaining information for planning and control and for performance evaluation. Budgeting is the most commonly used tool for planni

56、ng and control and forces managers to: Look aheadTranslate strategy into plansCoordinate and communicate within the organizationProvide a benchmark for evaluating performance2022-3-2864uAnalyzing the relevant information for making decisions. Managers must understand which revenues to consider and w

57、hich 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.2022-3-2865Question: Financial Statements for Manufacturing CompaniesuChairs Plus is a small Chairs Plus is a small furniture manufacturing furniture manufacturing company. company. uBeginning and ending work Beginning and ending work in process inven