Cost-Accumulation--Tracing--and-Allocation.ppt
《Cost-Accumulation--Tracing--and-Allocation.ppt》由会员分享,可在线阅读,更多相关《Cost-Accumulation--Tracing--and-Allocation.ppt(61页珍藏版)》请在沃文网上搜索。
1、Cost Accumulation,Tracing,and AllocationChapter 5Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-2IntroductionDid costs increase or decrease from last year?Who isresponsible?Were actual costsconsistent withexpected costs?Is our selling pricesufficient to cover costsand provide foradequate profita
2、bility?Who shouldbe rewarded?How can improvementbe accomplished?What is our costof goods sold?What is ourinventory cost?Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-3Using Cost Drivers to Accumulate CostsMachinehoursLabourhoursUnitsproducedKilometresdrivenA cost driver is anyfactor that causes
3、 or“drives”an activitys costsCopyright 2003 McGraw-Hill Ryerson Limited,Canada5-4Using Cost Drivers to Accumulate Costs Accumulated Minutes Rate per Cost Talked Minute Minutes TalkedTotal Long DistanceTelephone Bill=Minutes talked isthe cost driver.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-
4、5Estimated Versus Actual CostEstimated CostsManagers use estimated costs tomake decisions about the future.Actual CostsKnowledge of actual costs,after the fact,may not be useful for planning and decision making.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-6Estimated Versus Actual CostRelevantP
5、otentialInaccuraciesTimelyEstimated CostsManagers use estimated costs tomake decisions about the future.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-7Estimated Versus Actual CostEstimated CostsMay be used to set prices,make bids,evaluate proposals,distribute resources,plan production,and set g
6、oals.RelevantPotentialInaccuraciesTimelyCopyright 2003 McGraw-Hill Ryerson Limited,Canada5-8Assigning Cost to Objects in a Retail BusinessStyle,Inc.Department Store pays a bonus to eachdepartment manager based on departmental sales.The incentive has increased departmental sales,but departmental prof
7、its have not increased accordingly.Management has decided to base future bonuseson department profitability.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-9Assigning Cost to Objects in a Retail BusinessThe first step in the development of the new bonusstrategy is to determine the costs of each d
8、epartment.Costs that are easily traced todepartments are called direct costs.Costs that cannot be easily traced todepartments are called indirect costs.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-10Assigning Cost to Objects in a Retail BusinessCopyright 2003 McGraw-Hill Ryerson Limited,Canada
9、5-11Assigning Cost to Objects in a Retail BusinessDirect and indirect costs may be either fixed or variable.A cost can be either direct or indirectdepending on the cost object.The store manager salary is indirect to any onedepartment,but is directly traceable to the store.Copyright 2003 McGraw-Hill
10、Ryerson Limited,Canada5-12Allocating Indirect Costs to DepartmentsIdentify the most appropriate costdriver for each indirect cost.Indirect costs should be allocated to reflecthow the departments consume resources.Style,Inc.chosethese cost drivers:Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-13
11、Allocating Indirect Costs to DepartmentsUse a two-step process to allocate indirect costs:Allocation rate=total cost cost driver activity.Allocated cost=allocation rate weight of the cost driver activity.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-14Assigning Cost to Objects in a Retail Busin
12、ess$9,360 3 departments=$3,120 per department$3,120 1 department=$3,120Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-15Assigning Cost to Objects in a Retail Business$18,400 23,000 square metres =$0.80 per square metre$0.80 12,000 Womens square metres=$9,600$0.80 7,000 Mens square metres=$5,600$
13、0.80 4,000 Childrens square metres=$3,200Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-16Assigning Cost to Objects in a Retail Business$2,300 23,000 square metres =$0.10 per square metre$0.10 12,000 Womens square metres =$1,200$0.10 7,000 Mens square metres=$700$0.10 4,000 Childrens square metr
14、es=$400Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-17Assigning Cost to Objects in a Retail Business$7,200$360,000 sales =$0.02 per sales dollar$0.02$190,000 Womens sales=$3,800$0.02$110,000 Mens sales=$2,200$0.02$60,000 Childrens sales=$1,200Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-
15、18Assigning Cost to Objects in a Retail Business$900$360,000 sales =$0.0025 per sales dollar$0.0025$190,000 Womens sales=$475$0.0025$110,000 Mens sales=$275$0.0025$60,000 Childrens sales=$150Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-19Assigning Cost to Objects in a Retail BusinessCopyright
16、2003 McGraw-Hill Ryerson Limited,Canada5-20Assigning Cost to Objects in a Retail BusinessNow lets combine thecosts and revenues andsee how departmentalprofitability looks.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-21Assigning Cost to Objects in a Retail BusinessCopyright 2003 McGraw-Hill Rye
17、rson Limited,Canada5-22The Effects of Cost Behaviour on Cost Driver SelectionDoes this mean that I should use different costdrivers for variable andfixed overhead?Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-23Using Volume Measures to Allocate Variable Manufacturing OverheadIncreases in the vo
18、lume of production willcause variable overhead costs to increase.Volume measuresserve as good cost driversfor the allocation ofvariable overhead.UnitsProducedLabourHoursMaterialsUsedCopyright 2003 McGraw-Hill Ryerson Limited,Canada5-24Using Volume Measures to Allocate Variable Manufacturing Overhead
19、Filmier Furniture CompanyProduction and Cost InformationUse the two-step process to allocate indirect materialscost using the three volume measures as cost drivers.Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-25Using Volume Measures to Allocate Variable Manufacturing Overhead$60,000 5,000 unit
20、s =$12 per unit$12 per unit 4,000 chairs=$48,000$12 per unit 1,000 tables=$12,000Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-26Using Volume Measures to Allocate Variable Manufacturing Overhead$60,000 6,000 hours =$10 per hour$10 per hour 3,500 hours=$35,000$10 per hour 2,500 hours=$25,000Copy
21、right 2003 McGraw-Hill Ryerson Limited,Canada5-27Using Volume Measures to Allocate Variable Manufacturing Overhead$60,000$1,500,000 of material =$0.04 per$0.04 per$1,000,000=$40,000$0.04 per$500,000=$20,000Copyright 2003 McGraw-Hill Ryerson Limited,Canada5-28Selecting the Best Cost DriverSo which vo
- 1.请仔细阅读文档,确保文档完整性,对于不预览、不比对内容而直接下载带来的问题本站不予受理。
- 2.下载的文档,不会出现我们的网址水印。
- 3、该文档所得收入(下载+内容+预览)归上传者、原创作者;如果您是本文档原作者,请点此认领!既往收益都归您。
下载文档到电脑,查找使用更方便
20 积分
下载 | 加入VIP,下载更划算! |
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Cost Accumulation Tracing and Allocation