活动和过程决定的管理会计信息(英文)

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1、Management Accounting Information for Activity and Process DecisionsChapter 6Learning Objective 1Explain why sunk costs are not relevant costs.Evaluation of Financial ImplicationsuMany decisions require tradeoffs between the costs and the benefits of different alternatives.uFinancial information abo

2、ut the different types of costs forms the basis of decisions about the organizations activities and processes.Sunk CostsuWhat are sunk costs?uSunk costs consist of those costs incurred in the past.uThey are the costs of resources already committed and cannot be changed by any current action.uThese c

3、osts are irrelevant in decision making.Relevant Costs and RevenuesuWhat are relevant revenues and costs?uThey are the revenues and costs that differ across the decision alternatives.uCosts that remain the same regardless of the alternative chosen are not considered relevant for the decision.Relevant

4、 Costs and RevenuesuWhat are some examples of relevant cost increases or cost savings?Down paymenton a new machineLease paymentson a new machineDisposalof an old machineCost savingsRelevant Costs and RevenuesuManagement of Joe Printers,Inc.is considering replacing its current printing machines with

5、newer,faster,and more efficient technology.uThe following data have been compiled:Relevant Costs and Revenues Existing New Category Machines MachinesOriginal cost$100,000$120,000 Annual operating costs$55,000$20,000 Remaining useful life4 years4 years Disposal value now$25,000N/A Salvage value after

6、 4 years00 Four Years Together Keep Replace Difference Operating costs$220,000$80,000$140,000 Disposal value-($25,000)$25,000New machine acquisition cost$120,000 ($120,000)Total costs$220,000$175,000$45,000Relevant Costs and RevenuesRelevant Costs and RevenuesuShould Joe Printers,Inc.replace the exi

7、sting machines?uYes,because replacing the machines will provide the company with cost savings of$45,000 over the four years period.Learning Objective 2Analyze make-or-buy decisions.Make-Or-Buy DecisionsuWhat is a make-or-buy decision?uIt is to either make some parts and components in-house or subcon

8、tract with another company to supply them.uWhat is outsourcing?uIt is purchasing a product,part,or component from an outside supplier instead of manufacturing it in-house.Make-Or-Buy DecisionsuVirginia Motors manufactures auto parts.uAn outside supplier has offered to supply 30,000 parts of model G2

9、3 at a price of$180 per unit.uWhat costs must the decision maker identify before accepting this offer?Make-Or-Buy DecisionsuDecision makers must identify what costs are relevant for the decision.uAvoidable costs are eliminated when a part,product line,or a business segment is discontinued.uUnavoidab

10、le costs will continue.Make-Or-Buy DecisionsuUnit manufacturing costs for G23 are:Direct material$78 Direct labor 60 Unit related support 15 Batch related support 20 Product sustaining support 10 Facility sustaining support 17 Total cost$200Make-Or-Buy DecisionsuAssume that the avoidable costs are:D

11、irect material$78 Direct labor 60 Unit related support 13 Batch related support 10 Product sustaining support 6 Total avoidable cost$167Make-Or-Buy DecisionsuThe following costs will continue whether Virginia Motors makes the part or outsources it:Unit related support$2 Batch related support 10 Prod

12、uct sustaining support 4 Facility sustaining support 17 Total cost$33Make-Or-Buy DecisionsuShould Virginia Motors outsource model G23?uNo,because it will cost the company$390,000 more to purchase the part from the outside supplier.u($180$167)30,000=$390,000Learning Objective 3Explain the influence o

13、f qualitative factors in making decisions.Qualitative FactorsuAre the quantitative estimates of revenues and costs the only relevant considerations for decision makers?uNo,because qualitative factors also need to be considered.uWhat are examples of qualitative factors?Qualitative FactorsReputation o

14、f supplierSuppliers ability to meet performance standardsSuppliers ability to meet time commitmentsQualitative FactorsuWhat is a certified supplier?uIt is a specially selected supplier who is assured a high level of business for conforming to high standards for quality and delivery schedules.Learnin

15、g Objective 4Describe the different types of facilities layouts.Facility Layout SystemsuWhat are the three general types of facility designs?uProcess layoutsuProduct layoutsuCellular manufacturingFacility Layout SystemsuProcess layouts group similar equipment or functions together.uProcess layouts e

16、xist in organizations in which production is done in small batches of unique products.uProducts follow long production paths.uProcess layouts are characterized by high inventory levels.Facility Layout SystemsuProduct layout organizes equipment to accommodate the production of a specific product.uPro

17、duct layout exists primarily in companies with high volume production.uThe product moves along an assembly line.uProduct layouts reduce the level of inventory in the system.Facility Layout SystemsuCellular manufacturing layout refers to the organization of a plant into a number of cells.uAll machine

18、s required to manufacture a group of similar products are arranged in close proximity.uThe machines in a cellular manufacturing layout can be adjusted to make different products.Facility Layout Systems Cellular ManufacturingInventory Costs and Processing TimeuMoving and storage costs of inventory ca

19、n be significant and are non-value added.uManagers may stockpile work to avoid idle facilities.uBatch production creates inventory costs.Inventory Costs and Processing TimeuWhat are some inventory problems associated with batch production?uUnbalanced work rates cause inventory stockpiles.uDefects ar

20、e often found at the end of production.Inventory Costs and Processing TimeuWhat is processing time?uIt is the time spent in making a product.uWhat is manufacturing cycle time.uIt is the time from the receipt of the raw materials from the supplier to the delivery of the finished goods to the distribu

21、tors and customers.Inventory Costs and Processing TimeuOne method used by organizations to assess the efficiency of their manufacturing process is known as manufacturing cycle efficiency.MCEProcessing Time(Processing time+Moving time +Storage time+Inspection time)=Inventory Costs and Processing Time

22、uWhat are some benefits of layout reorganization?uReduced production cycle timeuReduced work-in-process inventoryuReduced production costsuReduced costs of reworkuReduced inventory carrying chargesuImprovements in production yield rateLearning Objective 5Discuss the theory of constraints.Theory of C

23、onstraintsuA central goal of the design process is to streamline operations and thus increase the operating income of the system.uThe theory of constraints(TOC)maintains that operating income can be increased by carefully managing the bottlenecks in a process.uWhat is a bottleneck?Theory of Constrai

24、ntsuIt is any condition that impedes or constrains the efficient flow of a process.uA bottleneck can be identified by determining points at which excessive amounts of work-in-process inventories are accumulated.uThe building of inventories also slows the cycle-time production.Theory of ConstraintsuT

25、he theory of constraints relies on the use of three measures.uThe throughput contributionuInvestmentsuOperating costsuThe throughput contribution is the difference between revenues and direct materials for the quantity of product sold.Theory of ConstraintsuInvestments equal the materials costs conta

26、ined in raw materials,work in process,and finished goods inventories.uOperating costs are all other costs,except for direct materials costs,that are needed to obtain throughput contribution.uThe TOC emphasizes the short-run optimization of throughput contribution.Learning Objective 6Explain the purp

27、ose of just-in-time manufacturing systems.Just-In-Time ManufacturinguJust-in-time production requires making a good or service only when the customer,internal or external,requires it.uIt uses a product layout with a continuous flow.uAt the core of the JIT process is a highly trained work force.JIT M

28、anufacturing and Management AccountinguJust-in-time manufacturing has two major implications for management accounting.uFirst,management accounting must support the move to just-in-time manufacturing by monitoring,identifying,and communicating to decision makers the sources of delay,error,and waste

29、in the system.JIT Manufacturing and Management AccountinguSecond,the clerical process of management accounting is simplified by JIT because there are fewer inventories to monitor and report.uWhat are some measures of a JIT systems reliability?uDefect ratesuCycle timesJIT Manufacturing and Management

30、 Accounting3Percent of time that deliveries are on time4Order accuracy5Actual production as a percent of planned production6Actual machine time available compared to planned machine time availableLearning Objective 7Describe the concept of the cost of quality.Quality IssuesuThe premise underlying co

31、st reduction is to decrease costs while maintaining or improving product quality.uIf the quality of products and services does not conform to quality standards,the organization incurs the cost of nonconformance to quality standards.Quality IssuesuWhat is quality?uQuality can be viewed as hinging on

32、two major factors:uSatisfying customer expectations regarding the attributes and performance of the productuEnsuring that the technical aspects of the products design conform to the manufactures standardsCosts of QualityuHow are quality costs classified?uPrevention costsuAppraisal costsuInternal fai

33、lure costsuExternal failure costsuPrevention costs are incurred to ensure that companies produce products according to quality standards.Costs of QualityuAppraisal costs relate to inspecting products to make sure they meet both internal and external customers expectations.uInternal failure costs are

34、 incurred when the company detects defective products before they are delivered to customers.uExternal failure costs occur when customers discover a defect.Costs of QualityuWhat is a cost-of-quality report?uIt is a report that details the cost of quality by the categories prevention,appraisal,intern

35、al failure,and external failure.Telnet-sunnyFileDisc onnectEditSettingNetworkHelpTelnet-VAXFileDisconnec tEditSettingNetworkHelpTelnet-sunnyFileDisc onnectEditSettingNetworkHelpPing-IBMFileHostOptionsHelp64 bytes from ps2(100.100.100.5):icm p_seq=91,-ps2 PING Statistic-92 pac kets transm itted,92 pa

36、c kets rec eived,0%round-trip(m s)m in/aug/m ax=0/0/20 64 bytes rec eived,icm p_64 bytes rec eived,icm p_Learning Objective 8Describe the cost savings resulting from reductions in inventories,reduction in production cycle time,production yield improvements,and reductions in rework and defect rates.T

37、obor Toy Company RevisiteduTobor Toy Company adopted a just-in-time manufacturing system.uTobor succeeded in decreasing its major and minor rework rates.uAverage production cycle time was also reduced.Production FlowsComponent andFinal AssemblyFirstInspectionInjectionMoldingMajorDefect?Yes NoProduct

38、ion FlowsPackingReworkFinishing andSecond InspectionMajorDefect Yes NoScrapMinorDefectWork-in-Process InventoryuThe average work-in-process inventory decreased.uWork-in-process inventory was directly influenced by the number of major and minor defects.uProduction managers attributed the reduction in work-in-process inventory entirely to reduction in defect rates.End of Chapter 6