ACCAF5復(fù)習(xí)提綱講課稿

1、學(xué)習(xí)資料Self-review F5Part A Std. costingLife cycle costingestimates the costs and revenues attributable to a product over its entireexpected life cycle, from productionconceptand designto eventual withdrawal fromthemarket.How to maximize the return? (profit)1.Extend the length of the life span.2. Minim

2、ize the time to market.3. Shorten the introduction.4.Control the R&D.5.Minimize the breakeven time.Profitability 、 Pricing 、 Cost control 、Decision makingTarget costingPurpose: improve the competition to suit the environment with similar productsProcess :Step 1 Determine a product specificationS

3、tep 2 Decide a target selling price at which the organisation will be able to sell the product successfully and achieve a desired market share.Step 3 Estimate the required profit, based on required profit margin or return on investment.Step 4Calculate: Target cost = Target selling priceTarget profit

4、.Step 5Prepare an estimated cost for the product, based on the initial design specificationand current cost levels.Step 6Calculate: Target cost gap = Estimated costTarget cost.Step 7Make efforts to close the gap.How to close the cost gap?1.Using cheaper staff2.Acquiring more efficient technology3.Cu

5、tting out non-value-added activities4.Training staff in more efficient techniquesBenefits:1.cost reduction techniques2.focus on customer improve the level of satisfaction3.focus on product design and process4.improve the competitiveness of products and enhancing the profitability of success Throughp

6、ut AccountingTOC(The theory of constraints): Its key financial concept is to turn materials into sales as quickly as possible, thereby maximizing the net cash generated from sales-productionmanagementAssumptions:1.In the short run, the cost of purchase materials is the only variable cost, other cost

7、s in the factory are fixed costs.2.Producing for orders, the ideal inventory level should be zero.精品文檔學(xué)習(xí)資料3.profitability is determined by how quickly goods can be produced to satisfy customer orders.4.idle time at non-bottleneck exist and is acceptedTA per bottleneck resource(return per factory hr)

8、-Throughput/bottleneck hrs per unit計(jì)算題：Optimum plan:(1).Limiting factor analysis(contribution per bottleneck resource)(2).TA accounting(Throughput per bottleneck resource)1.TA 類process ：1. The bottleneck resource is xxxx2. calculation TA/unit TA/bottleneck hours 3.rank production4.allocate resource

9、to arrive at optimum production planTA ratio :total TA/ total factory costTA per bottleneck resource/Factory cost per bottleneck resource TA per unit/ Factory per unit2.ABC 類Cost poolO/Hactivity driverno. of driversOH/driverCost(O/H) per productEAEMA(environmental management accounting)-internalUS:1

10、.Conventional cost2.Potentially hidden cost3.Contingent costs4.Image and relationship costsUNDSD:1.Input/output analysis2.Flow cost accounting-materialsystemdelivery&disposal3.ABC4.Lifecycle costingPart B Decision makingSingle limiting factor-optimum production planRankcontribution per limiting

11、factor=CPU/limiting factor per unitMultiple limiting factor-linear programming畫圖可行域交點(diǎn)代入目標(biāo)方程式Variables:Let x = number of XXXLet c represent the contribution精品文檔學(xué)習(xí)資料Constraints: 聯(lián)立不等式組p.s: non negativityObjective: c=SlackSlack occurs when maximum availability of a resource or other constraining factor

12、 is not used.Constraint with slack-non-critical constraint, shadow price=0Constraint without slack-critical constraint (binding)This is a non-critical scarce resource and as such it has a shadow price of nil.Shadow priceThe shadow price （ dual price ） of a limiting factor is the increase in value wh

13、ich would be created by having one additional unit of the limiting factor at its original cost.（ linear programming ）extra contribution or profit that may be earned by relaxing a binding resource constraint by one unit.Process：聯(lián)立兩個(gè) bindingShadow price= total contribution（ new optimal plan） -total co

14、ntribution in original solutionRelevant costs are future cash flows arising as a direct consequence of a decision. Opportunity cost is the benefit sacrificed by choosing one opportunity rather than the next best alternative.Cash inflowsLess: Cash outflowsNet cash flowSpare capacityMake or buydecisio

15、nsNo spare capacityProcess;Variable cost of makingVariable cost of buyingExtra variable cost of buyingLimiting factor saved by buying(per unit)Extra variable cost of buying per hour savedRankingShut-downdecisionsFactors to consider for shutting-down decisions:精品文檔學(xué)習(xí)資料1.Loss of contribution from the

16、segment2.Savings in specific fixed costs from closure3.Penalties resulting from the closure4.Alternative use for resources released5.Non-quantifiable effects6.Knock-on impact loss leader局部故意虧損以求整體利益If shut down;Cash inflows;Saved costsIncreased contribution of other products（ substitute ）Cash outflo

17、ws;Loss contribution (complement&itself)PenaltiesNCFsJoint productfurther processing decisionsIncremental revenueLess:Incremental costIncremental profit/(loss)The xxx product is worth further processing in that the extra revenue exceeds the extra cost by $xxxPricing DecisionsPrice elasticity of

18、demand- inelastic0 x<1Elasticx>1Demand equation;P=a-bQMR=a-2bQP=pricea=the price at which demand would be nilb= in price/ in quantityQ=the quantity demandedProfits maximised: MR=MCRevenue maximised: MR=0CVP analysisCost volume profit (CVP)/breakeven analysis is the study of the interrelationsh

19、ips between costs, volume and profit at various levels of activity.精品文檔學(xué)習(xí)資料CPU-contribution per unitBEP=contribution-FCTo make zero profit,sales volumeshould be atBEP=FC/CPUTo make zero profit,sales revenueshould be atBreakeven revenue=FC/ c/s ratioSales volume for target profit= FC+ target profit/C

20、PU利潤(rùn)率指標(biāo)（不變）C/S ratio=contribution/ sales= CPU/ priceWeighted average sales price per unit= price*volume/ volume Margin of safetyMOS=budgeted sales- BEP -in salesMOS=budgeted units-breakeven units-in unitsMOS/budgeted sales（百分比形式）Limitations of CVP analysis1. It is assumed that fixed costs are the sa

21、me in total and variable costs are the same per unit at all levels of output.2. It is assumed that sales prices will be constant at all levels of activity.3. Production and sales are assumed to be the same.4. Uncertainty in the estimates of fixed costs and unit variable costs is often ignored.Advant

22、ages1.Highlighting the breakeven point and the margin of safety gives managers some indication of the level of risk involved.2. Graphical representation of cost and revenue data (breakeven charts) can be more easily understood by non-financial managers.3. A breakeven model enables profit or loss at

23、any level of activity within the range for which the model is valid to be determined, and the C/S ratio can indicate the relative profitability of different products.Risk&uncertaintyRisk involves events which may or may not occur, but whose probability of occurrence can be estimated statisticall

24、y.Risk preferenceA risk seekeris a decision-maker who is interested in the best outcomes, no matter howsmall the chance that they may occur. -optimistA riskaverse is a decision-makeracts on the assumptionthat the worst outcomemightoccur and will make a decision to minimize the risk. -pessimist精品文檔學(xué)習(xí)

25、資料A risk neutral is a decision-maker who will make a decision that balance risk and return, and consider the most likely outcome.Expected value-support a risk neutral attitudeEV=possible outcome *probabilitiesLimitations of expected values;1. The expected value of a decision may be a value that will

26、 never occur.2. EV is an average value, it ignores the extreme outcomes.3.It ignores the aspect of probability distribution.Sensitivity analysisSensitivity analysis is used to testify the critical value to make the decision invalid. Sensitivity analysis can help to concentrate management attention o

27、n the most important factors.If xxx costs are more thanx% above estimate, the project would make a loss.X%=profit/xx costMonte carlo simulationSimulation models can be used to deal with decision problems when there are a large number of uncertain variables in the situation. Random numbers are used t

28、o assign values to the variables.Part C Budgeting and controlA budget is a quantified plan of action for a forthcoming accounting period.Objectives of a budgetary planning and control system:1.Ensure the achievement of the organisationectivesobj2.Compel planning3.Communicate ideas and plans4.Co-ordi

29、nate activities5.Provide a framework of responsibility accounting.6.Establish a system of control7.Motivate employees to improve their performanceThe planning and control cycle has seven steps.Step 1. Identify objectivesStep 2. Identify potential strategiesStep 3. Evaluate strategiesStep 4. Choose a

30、lternative courses of actionStep 5. Implement the long-term planStep 6. Measure actual results and compare with the planStep 7. Respond to divergences from the plan精品文檔學(xué)習(xí)資料FeedbackFeedback is information produced as output from operations; it is used to compare actual results with planned results fo

31、r control purposes. Budgeting and performance managementA fixedbudgetis abudgetwhich remainsunchanged throughoutthebudgetperiod,regardless of differences between the actual and the original planned volume of output orsales. -planning purpose & prepared in advanceA flexiblebudgetis a budgetwhich,

32、by recognisingdifferentcostbehaviourpatterns,ischangedas the volume of output andsales changes. -controlpurpose&preparedretrospectivelyTop-down (Imposed budgeting)Budgetpreparedbyseniormanagerandbeingposted toindividualmanagers.Noparticipation of junior manager.Bottom-up (Participative budgeting

33、)Budget prepared by lower management and submit to high level for approvalRolling budgets (continuous budgets) are budgets which are continuously updated throughout a financial year, by adding a further period (say a month or a quarter) and removing the corresponding period that has just ended.Aim:

34、Rolling budgets may be used when the pace of change in the business environment isfast and continual. They represent an attempt to prepare realistic plans and keep tight control.Incremental budgetingis a method of budgeting in which next year's budget is preparedby using the current year's a

35、ctual results as a starting point, and making adjustments for known changes.Zero based budgetinginvolves preparing a budget for each cost centre or activity from azero base. Every item of expenditure has then to be justified in its entirety in order to beincluded in the next year's budget.- admi

36、nistrative expenses and departments,The aim of zero based budgeting is toremove unnecessary and wasteful spendingfromthe budget.精品文檔學(xué)習(xí)資料ZBB is particularly useful for budgeting for discretionary costs and for rationalisation purposes, in areas of operations where efficiency standards are not properl

37、y established,such as administration work.ZBB recognition:1.The current year's results may include wasteful spending and inefficiencies.2.Budgetedactivitiesshouldbe reviewedand assessed to establish whetherthey are stillrequired or whether they should continue at the same level of activity as in

38、 the past.3 steps approach to ZBBDefine decision package(items or activities) for which costs should be budgeted, and spending decisions should be planned:Evaluate and rank the packages in orderof priority:eliminatepackages whose costs exceed their value.Allocateresources to the decisionpackagesacco

39、rdingto theirranking.Beyond Budgeting is a budgeting model which proposes that traditional budgeting should be abandoned. Adaptive management processes should be used rather than fixed annual budgets.Variance analysisA mix variance occurs when the materials are not mixed or blended in standard propo

40、rtions and it is a measure of whether the actual mix is cheaper or more expensive than the standard mix.A yield variance arises because there is a difference between what the input should have been for the output achieved and the actual input.The sales mix variance occurs when the proportions of the

41、 various products sold are different from those in the budget.The sales quantity variance shows the difference in contribution/profit because of a change in sales volume from the budgeted volume of sales.The principle of controllability is that managers of responsibility centres should only be held

42、accountable for costs over which they have some influence.Part D Performance managementPerformance measurement is a vital part of the planning and control process.Non-financial measures may relate to a number of different aspects of performance, such as:Product or service qualityReliabilitySpeed of

43、performanceRiskFlexibility精品文檔學(xué)習(xí)資料Customer satisfactionInnovationCapabilityDeliveryFPIs analyse return on capital, profitability, liquidity and financial risk, often in relation to a plan or budget, or in relation to performance in preceding time periods.Balance scorecardThe balanced scorecardis a s

44、trategicmanagementtechniquefor communicating andevaluating the achievement of the strategy and mission of an organisation. It comprises anintegrated frameworkoffinancialandnon-financialperformancemeasures that aimtoclarify, communicateandmanagestrategy implementation. It translates an organisation s

45、strategy into objectives and performance measurements for the following four perspectives:Financialperspective:thisperspective considers howtheorganisationappearstoshareholders. How can it create value for its shareholders?KaplanandNorton,whodeveloped the balanced scorecard, identified three core financial themes that will drive thebusiness strategy: revenue growth and mix, cost reduction and asset utilisation.Customerperspective:thisconsidershowthe organisation appearstocustomers.Thecustomer perspective should identify the customer and market se