1、1,Review,2,Chapter 1: Introduction,Why management accounting? Origin and evolution of management accounting Contrasting financial and management accounting Ethical standards for management accounting Management accounting in China,3,Chapter 2 :Classifying Costs,Assigning costs to cost objects Produc
2、t cost Direct materials Direct labor Manufacturing overhead Period cost Selling cost Administrative cost Prime cost and conversion cost,4,Chapter 2 :Classifying Costs,Inventory classifications Raw materials Work-in-process Finished goods The flow of product costManufacturing cost for current period
3、+ Beginning work-in-process inventory = cost of goods available to be finished - Ending work-in-process inventory = Cost of goods manufactured,5,Chapter 3 :Determining Costs of Products,Job order costing Direct material : trace Direct labor : trace Manufacturing overhead : allocate Cost pool and all
4、ocation base Actual cost system vs. normal cost system Over-apply vs. under-apply Process costing Equivalent units and cost per equivalent unit Cost of ending work-in-process Cost of completed units,6,Chapter 4 : Activity Based Costing,ABC Cost driver : causes the cost to occur Steps to employ ABC R
5、eview manufacturing overhead Identify major activities Pool the costs of major activities Determine multiple cost application rates Determine the costs assigned to individual products Comparison of traditional and ABC overhead allocation,7,Major Points of Cost Allocation,Why allocate?,How much to al
6、locate?,Allocate to whom?,How to allocate?,1,2,3,4,8,Chapter 5 : Cost Behavior,Common cost behavior patterns Fixed costs : think as total Variable costs : think on a per-unit basis Relevant range Mixed costs and its separation The engineering approach Scatter graphing The high-low method Regression
7、analysis,9,Chapter 6 : Business Decisions using Cost Behavior,Cost-volume-profit analysis Contribution margin total vs. per unit Contribution margin ratio Break-even (in units and in dollars) Target profit (in units and in dollars) Three formulas (page 136) Sensitivity analysis,10,CVP Equations,Sale
8、s Variable Costs Fixed Costs = target profit,(Sales) (VC ratio * Sales) FC = target profit,(SP/unit * units) (VC/unit * units) FC = target profit,(Sales) (VC ratio * Sales) FC = TP ratio * Sales,11,Chapter 6 : Business Decisions using Cost Behavior,Absorption costing and variable costing Functional
9、and contribution income statement,12,Sales,Variable Costs,Contribution Margin,Direct Material,Direct Labor,Variable Mfg.,Variable S&A,Fixed Mfg.,Fixed S&A,Profit,13,Sales,Cost of Good Sold,Gross Margin,Direct Material,Direct Labor,Variable Mfg.,Fixed Mfg.,Variable S&A,Fixed S&A,Profit,14,Chapter 7 :
10、 Making Decisions Using Relevant Information,Relevant Information Relevant Cost & Relevant Benefit Sunk Costs Opportunity Costs Quantitative Factors Qualitative Factors Segment Margin,15,Determining Relevant Cost and Benefit,Is the item a future cost or benefit?,16,According to the above two criteri
11、a:Historical cost (sunk cost) is irrelevant. Future cost that will not differ is irrelevant. Variable cost can be irrelevant. Fixed cost can be relevant. Precise but irrelevant information is worthless for decision making. Imprecise but relevant information can be useful.,17,Types of Problems,A. Equ
12、ipment Replacement Sunk Costs & Depreciation B. Special Order Fixed Cost & Opportunity Costs C. Outsourcing: Make or Buy Decision Fixed Costs and Opportunity Costs D. Discontinuing A Business Segment Avoidable Costs & Unavoidable Costs,18,Chapter 8 : Capital Budgeting,Time value of money Exhibit A8-
13、5 and A8-10 (P 213 and P 216) The business planning process The why, the what, the how and the who Cost of capital Weighted average cost of capital Capital budgeting methods Net present value Profitability index Internal rate of return Payback period Accounting rate of return,19,Chapter 9 : The Oper
14、ating Budget,Different approaches to budgeting Preparing an operating budget Sales budget Cost of goods sold budget Selling and administrative expenses budget Purchases budget Cash budget Cash receipts and cash payments schedule Budgeted statements Balance sheet, income statement and statement of ca
15、sh flow,20,Chapter 9 : The Operating Budget,Performance report Static budget Flexible budget Static budget variance Sales volume variance Flexible budget variance Favorable variance and unfavorable variance Management by exception,21,Chapter 10 : Standard Costing,Standards Quantity and price standar
16、ds Ideal and practical standards Variance Analysis Direct material quantity variance Direct material price variance Direct labor efficiency variance Direct labor rate variance Variable mfg. overhead efficiency variance Variable mfg. overhead spending variance Fixed mfg. overhead budget variance Fixe
17、d mfg. overhead volume variance,22,Chapter 11 : Evaluating Performance,Allocating service department cost Centralization and decentralization Evaluating business segments Revenue center Cost center Profit center Investment center Return on investment and residual income Transfer pricing,23,Problems,
18、1. Cost allocation and ABC Calculate and comment 2. Gross margin and contribution margin Absorption costing and variable costing 3. Capital budget Net present value Profitability index Internal rate of return Payback period Accounting rate of return,24,Problems,4. Variance analysis Calculate and com
19、ment 5. Cost-volume-profit analysis Break-even point and target profit Sensitivity analysis Relevant range 6. Making decisions using relevant information Identify relevant information Sunk cost and opportunity cost Quantitative factors and qualitative factors,25,Problems,7. Evaluating performance Re
20、turn on investment and residual income 8. Comprehensive problem CVP analysis and sensitivity analysis Relevant information and decision making 9. Comprehensive problem Capital budgeting CVP analysis Transfer pricing and decision making,Problem 1,26,Problem 1,27,Problem 1,28,Problem 1,29,Problem 2,30
21、,Problem 2,31,32,Sales,Cost of Good Sold,Gross Margin,Direct Material,Direct Labor,Variable Mfg.,Fixed Mfg.,Variable S&A,Fixed S&A,Profit,20,000,100,000,33,Problem 2,*Answer (e) is simply 100 - 20 = 80.,34,Sales,Cost of Good Sold,Gross Margin,Direct Material,Direct Labor,Variable Mfg.,Fixed Mfg.,Var
22、iable S&A,Fixed S&A,Profit,20,000,100,000,80,000,35,000,25,000,15,000,35,Problem 2,*Answer (c) is 80 - (35 + 25 + 15) = 5.,36,Sales,Cost of Good Sold,Gross Margin,Direct Material,Direct Labor,Variable Mfg.,Fixed Mfg.,Variable S&A,Fixed S&A,Profit,20,000,100,000,80,000,35,000,25,000,15,000,-5,000,37,
23、Problem 2,*Total selling and administrative expenses = 5 + 20 = 25. The fixed selling and administrative expenses =10Then answer (a) is 25 - 10 = 15.,38,Problem 2,Sales $100 Cost of goods manufactured and sold (i.e.,manufacturing cost of goods sold): Direct material $35 Direct labor 25 Variable manu
24、facturing overhead 5* Fixed manufacturing overhead 15 Total manufacturing cost of goods sold 80 * Gross profit 20 Selling and administrative expenses: Variable 15* Fixed 10 25 Net loss $ (5),39,Problem 2,*Answer (e) is simply 100 - 20 = 80. *Answer (c) is 80 - (35 + 25 + 15) = 5. *Total selling and
25、administrative expenses = 5 + 20 = 25.Then answer (a) is 25 - 10 = 15.,40,Sales,Variable Costs,Contribution Margin,Direct Material,Direct Labor,Variable Mfg.,Variable S&A,Fixed Mfg.,Fixed S&A,Profit,41,Problem 2,Sales $100Direct materials (35)Direct labor (25)Variable manufacturing overhead (5)Varia
26、ble selling and administrative (15)Contribution margin $ 20Break-even =(15000+10000)/0.2 = $125,000,42,Problem 3,43,44,Problem 3,Problem 3,Problem 3,Problem 4,Page 183 7-32,48,Page 183 7-32,49,Problem 4,Howe Tie Company manufactures ties. When 18,000 items are produced, the costs per unit are:Direct
27、 materials $0.60Direct manufacturing labor 3.00Variable manufacturing overhead 1.20Fixed manufacturing overhead 1.60Variable selling 0.80Fixed selling 1.13Total $8.30The ties normally sell for $13 each. Howe Tie Company has received a special order for 2,000 ties at $6.00 per tie. Howe Tie Company h
28、as excess capacity.Required: Compute the amount by which the operating income would change if the order were accepted.,50,Problem 4,Answer: Additional sales (2,000 x $6.00) $12,000Relevant costs:Direct materials (2,000 x $0.60) $1,200Direct labor 2,000 x $3.00) 6,000Variable manufacturing overhead 2
29、,400(2,000 x $1.20) Variable selling (2,000 x $0.80) 1,600 11,200 Additional operating income $800,51,Problem 5,Page 184, 7-35 Page 184, 7-36,52,Page 184, 7-35,53,Page 184, 7-36,54,Problem 5,练习3,55,56,Problem 6,57,Problem 6,58,Problem 6,59,Problem 6,60,Problem 6,61,Problem 6,6.Osaka Company is plann
30、ing to buy new equipment to expand their production of a popular desk. Estimated data are: Cash cost of the new equipment now $380 000 Estimated life in years 10 Terminal salvage value $ 60 000 Incremental revenues per year $320 000 Incremental expenses per year (other than depreciation ) $165 000,6
31、2,Problem 6,Assume a 60% flat rate for income taxes. The company receives all revenues and pays all expenses other than depreciation in cash. Use a 14% discount rate. Assume that the company uses ordinary straight-line depreciation based on a ten-year recovery period for tax purposes. Also assume th
32、at the company depreciates the original cost less the terminal salvage value. The present value of $1 at 14% for ten years is 0.270; the present value of an annuity of $1 at 14% for ten years is 5.216.; the future value of $1 at 14% for ten years is 3.707; the future value of an annuity of $1 at 14%
33、 for ten years is 19. 337.,63,Problem 6,Compute: (1) Anticipate net income per year (2%) (2) Annual net cash flow (3%) (3) Payback period (2%) (4) Accounting rate of return on initial investment (2%) (5) Net present value (3%),64,Problem 6,（1）Depreciation expense:(380,000 - 60,000) 10 = 32,000 Net i
34、ncome: Revenues 320,000 Less expense:Depreciation 32,000Other 165,000 197,000Operating income 123,000 Less income tax (60%) 73,800Net income 49,200,65,Problem 6,（2）Cash flow: 49,200 + 32,000 = 81,200 per yearor 320,000 - 165,000 - 73,800 = 81,200 （3）Payback period: 380,000 81,200 = 4.7 years （4）Acco
35、unting rate of return: 49,200 380,000 = 12.9%,66,Problem 6,（5）NPV: Annual cash flows, 81,200 x 5.2161 = 423,547Salvage value, 60,000 x 0.2697 = 16,182Gross present value 439,729Less: Investment 380,000 Net present value 59,729,67,Page 318 10-44,Problem 7,68,Page 318 10-44,Direct material price varia
36、nce =19360-16000*1.10=1760 U Direct material quantity variance =12000*1.10-2300*5*1.10=550 U Direct labor rate variance =46410-4750*12=10590 F Direct labor efficiency variance =4750*12-2300*2*12=1800 U,(Actual material price Standard material price) Actual material quantity,(Actual material quantity
37、 Standard material quantity) Standard material price,(Actual labor hours Standard labor hours) Standard labor rate per hour,(Actual labor rate Standard labor rate) Actual labor hours,69,Page 318 10-44,Variable mfg. overhead spending variance =29100-4750*6=600 U Variable mfg. overhead efficiency variance =4750*6-2300*2*6=900 U Fixed mfg. overhead budget variance =50125-48000=2125 U Fixed mfg. overhead volume variance =(3000-2300)*2*8=11200 U,单选 20*1 判断10*1 计算 6,70,71,期中考试试题,72,The End! Thanks!,
