管理会计chapter2文档资料

《管理会计chapter2文档资料》由会员分享，可在线阅读，更多相关《管理会计chapter2文档资料（64页珍藏版）》请在装配图网上搜索。

1、Costs Terms, Concepts and Classifications Chapter Two2-2 Why costs?wAn important part of information systemwA strategy wAn example-Airline company2-3 Different costs for different purposes -costs used in financial and managerial accountingwWhole or segment?wCost composition2-4Learning Objective 12-5

2、DirectMaterialsDirectLaborManufacturingOverheadManufacturing Costs2-6Direct Materials Raw materials that become an integral part of the product and that can be conveniently and directly traced to it.Example: A radio installed in an automobile2-7Direct LaborThose labor costs that can be easily traced

3、 to individual units of product.Example: Wages paid to automobile assembly workers2-8Manufacturing costs that cannot be traced conveniently and directly to specific units produced.Manufacturing OverheadIndirect materials, indirect labor, and other manufacturing overheadWages paid to employees who ar

4、e not directly involved in production work. Examples: maintenance workers, janitors and security guards.Materials used to support the production process. Examples: lubricants and cleaning supplies used in the automobile assembly plant.2-9Non-manufacturing CostsSelling CostsCosts necessary to get the

5、 order and deliver the product.Administrative CostsAll executive, organizational, and clerical costs.2-10Cost Classifications2-11Learning Objective 22-12 Matching Principle-based on Accrual accounting Costs incurred to generate a particular revenue should be recognized as expenses in the same period

6、 that the revenue is recognized.Economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received).2-13Product Costs Versus Period Costs Product costs include direct materials, direct lab

7、or, and manufacturing overhead.Period costs include all selling costs and administrative costs. InventoryCost of Good SoldBalanceSheetIncomeStatementSaleExpenseIncomeStatement2-14Quick Check Which of the following costs would be considered a period rather than a product cost in a manufacturing compa

8、ny?A. Manufacturing equipment depreciation.B. Property taxes on corporate headquarters.C. Direct materials costs.D. Electrical costs to light the production facility.E. Sales commissions.2-15Quick Check Which of the following costs would be considered a period rather than a product cost in a manufac

9、turing company?A. Manufacturing equipment depreciation.B. Property taxes on corporate headquarters.C. Direct materials costs.D. Electrical costs to light the production facility.E. Sales commissions.2-16Classifications of CostsDirectMaterialDirectLaborManufacturingOverheadPrimeCostConversionCostManu

10、facturing costs are oftenclassified as follows:2-17Comparing Merchandising and Manufacturing ActivitiesMerchandisers . . .w Buy finished goods.w Sell finished goods. Manufacturers . . .w Buy raw materials.w Produce and sell finished goods.MegaLoMart2-18Balance Sheet Merchandiser Current assetsuCashu

11、ReceivablesuPrepaid ExpensesuMerchandise Inventory Manufacturer Current AssetsuCashuReceivablesuPrepaid ExpensesuInventories Raw Materials Work in Process Finished Goods2-19 Merchandiser Current assetsuCashuReceivablesuPrepaid ExpensesuMerchandise Inventory Manufacturer Current AssetsuCashuReceivabl

12、esuPrepaid ExpensesuInventories Raw Materials Work in Process Finished GoodsBalance SheetPartially complete products some material, labor, or overhead has been added. Completed products awaiting sale. Materials waiting to be processed.2-20Learning Objective 32-21The Income Statement Cost of goods so

13、ld for manufacturers differs only slightly from cost of goods sold for merchandisers.Manufacturing CompanyCost of goods sold: Beg. finished goods inv.14,200$ + Cost of goods manufactured234,150 Goods available for sale248,350$ - Ending finished goods inventory(12,100) = Cost of goods sold236,250$ Me

14、rchandising CompanyCost of goods sold: Beg. merchandise inventory14,200$ + Purchases 234,150 Goods available for sale248,350$ - Ending merchandise inventory(12,100) = Cost of goods sold236,250$ 2-22Basic Equation for Inventory AccountsBeginningbalanceAdditionsto inventory+=EndingbalanceWithdrawalsfr

15、ominventory+2-23Quick Check If your inventory balance at the beginning of the month was $1,000, you bought $100 during the month, and sold $300 during the month, what would be the balance at the end of the month?A. $1,000.B. $ 800.C. $1,200.D. $ 200.2-24Quick Check If your inventory balance at the b

16、eginning of the month was $1,000, you bought $100 during the month, and sold $300 during the month, what would be the balance at the end of the month?A. $1,000.B. $ 800.C. $1,200.D. $ 200.$1,000 + $100 = $1,100$1,100 - $300 = $8002-25Learning Objective 42-26Schedule of Cost of Goods ManufacturedCalc

17、ulates the cost of raw material, direct labor and manufacturing overhead used in production.Calculates the manufacturing costs associated with goods that were finished during the period.2-27ManufacturingWorkRaw MaterialsCostsIn ProcessBeginning rawDirect materials materials inventory+ Raw materials

18、purchased= Raw materials available for use in production Ending raw materials inventory= Raw materials used in productionAs items are removed from raw materials inventory and placed into the production process, they arecalled direct materials. Product Cost Flows2-28ManufacturingWorkRaw MaterialsCost

19、sIn ProcessBeginning rawDirect materials materials inventory+ Direct labor+ Raw materials+ Mfg. overhead purchased= Total manufacturing= Raw materials costs available for use in production Ending raw materials inventory= Raw materials used in productionConversion costs are costs incurred to convert

20、the direct material into a finished product.Product Cost Flows2-29ManufacturingWorkRaw MaterialsCostsIn ProcessBeginning rawDirect materialsBeginning work in materials inventory+ Direct labor process inventory+ Raw materials+ Mfg. overhead+ Total manufacturing purchased= Total manufacturing costs= R

21、aw materials costs= Total work in available for use process for the in production period Ending raw materials inventory= Raw materials used in productionProduct Cost FlowsAll manufacturing costs incurred during the period are added to the beginning balance of work in process. 2-30ManufacturingWorkRa

22、w MaterialsCostsIn ProcessBeginning rawDirect materialsBeginning work in materials inventory+ Direct labor process inventory+ Raw materials+ Mfg. overhead+ Total manufacturing purchased= Total manufacturing costs= Raw materials costs= Total work in available for use process for the in production per

23、iod Ending raw materials Ending work in inventory process inventory= Raw materials used= Cost of goods in production manufacturedProduct Cost FlowsCosts associated with the goods that are completed during the period are transferred to finished goods inventory.2-31WorkIn ProcessFinished GoodsBeginnin

24、g work inBeginning finished process inventory goods inventory+ Manufacturing costs+ Cost of goods for the period manufactured= Total work in process= Cost of goods for the period available for sale Ending work in- Ending finished process inventory goods inventory= Cost of goodsCost of goods manufact

25、ured soldProduct Cost Flows2-32Manufacturing Cost FlowsFinishedGoodsCost of GoodsSoldSelling andAdministrativePeriod CostsSelling andAdministrativeManufacturingOverhead Work in ProcessDirect Labor Balance Sheet Costs Inventories Income StatementExpensesMaterial PurchasesRaw Materials2-33CostThe $100

26、 listed on the balance sheet as an inventoryExpenseThe $100 expensed until the finished goods are sold that are made of the raw material PayoutPay $100 for Raw Material2-34Quick Check Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at

27、the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used?A.$276,000B.$272,000C.$280,000D.$ 2,000 2-35Quick Check Direct materials used in production totaled $280,000. Direct labor was $375,000 and factory overhead was $180,000. What were

28、total manufacturing costs incurred for the month?A.$555,000B.$835,000C.$655,000D.Cannot be determined.2-36Quick Check Beginning work in process was $125,000. Manufacturing costs incurred for the month were $835,000. There were $200,000 of partially finished goods remaining in work in process invento

29、ry at the end of the month. What was the cost of goods manufactured during the month?A.$1,160,000B.$ 910,000C.$ 760,000D.Cannot be determined. 2-37Quick Check Beginning finished goods inventory was $130,000. The cost of goods manufactured for the month was $760,000. And the ending finished goods inv

30、entory was $150,000. What was the cost of goods sold for the month?A. $ 20,000.B. $740,000.C. $780,000.D. $760,000.2-38Learning Objective 52-39Cost Classifications for Predicting Cost Behavior How a cost will react to changes in the level of activity within the relevant range.w Total variable costs

31、change when activity changes.w Total fixed costs remain unchanged when activity changes.2-40Variable Cost Your total long distance telephone bill is based on how many minutes you talk.Minutes TalkedTotal Long DistanceTelephone Bill2-41Variable Cost Per UnitMinutes TalkedPer MinuteTelephone Charge Th

32、e cost per long distance minute talked is constant. 2-42Fixed Cost Your monthly basic telephone bill probably does not change when you make more local calls. Number of Local CallsMonthly Basic Telephone Bill2-43Fixed Cost Per UnitNumber of Local Calls Monthly Basic Telephone Bill per Local CallThe a

33、verage fixed cost per local call decreases as more local calls are made.2-44Cost Classifications for Predicting Cost BehaviorBehavior of Cost (within the relevant range)CostIn TotalPer UnitVariableTotal variable cost changesVariable cost per unit remainsas activity level changes.the same over wide r

34、angesof activity.FixedTotal fixed cost remainsAverage fixed cost per unit goesthe same even when thedown as activity level goes up. activity level changes.2-45 Importance of understanding cost behaviorwFood costs at a hotelwA hammer costs $1,0002-46Quick Check Which of the following costs would be v

35、ariable with respect to the number of cones sold at a Baskins & Robbins shop? (There may be more than one correct answer.)A. The cost of lighting the store.B. The wages of the store manager.C. The cost of ice cream.D. The cost of napkins for customers.2-47Quick Check Which of the following costs wou

36、ld be variable with respect to the number of cones sold at a Baskins & Robbins shop? (There may be more than one correct answer.)A. The cost of lighting the store.B. The wages of the store manager.C. The cost of ice cream.D. The cost of napkins for customers.2-48Learning Objective 62-49 Cost Object

37、Anything for which cost data are desired.Examples: products, customers, jobs,organizational subunits, etc.2-50Assigning Costs to Cost ObjectsDirect costsCosts that can beeasily and conveniently traced to a unit of product or other cost object.Examples: direct material and direct laborIndirect costsC

38、osts that cannot be easily and conveniently traced to a unit of product or other cost object. Example: manufacturing overhead2-51 Common costw A cost that is incurred to support a number of cost objects but cannot be traced to them individually. An Example-A trade with DOD 2-52Learning Objective 72-

39、53 Every decision involves a choice between at least two alternatives. Only those costs and benefits that differ between alternatives are relevant in a decision. All other costs and benefits can and should be ignored.Cost Classifications for Decision Making2-54Differential Cost and RevenueExample: Y

40、ou have a job paying $1,500 per month in your hometown. You have a job offer in a neighboring city that pays $2,000 per month. The commuting cost to the city is $300 per month. Differential revenue is: $2,000 $1,500 = $500Differential cost is: $3002-55Opportunity Cost The potential benefit that is g

41、iven up when one alternative is selected over another.Example: If you werenot attending college,you could be earningRMB100,000 per year. Your opportunity costof attending college for one year is RMB100,000.2-56Sunk Costs Sunk costs have already been incurred and cannot be changed now or in the futur

42、e. They should be ignored when making decisions. Example: You bought an automobile that cost $10,000 two years ago. The $10,000 cost is sunk because whether you drive it, park it, trade it, or sell it, you cannot change the $10,000 cost.2-57Quick Check Suppose you are trying to decide whether to dri

43、ve or take the train to Portland to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the cost of the train ticket relevant in this decision? In other words, should the cost of the train ticket affect the decision of whether you drive or take the tra

44、in to Portland?A. Yes, the cost of the train ticket is relevant.B. No, the cost of the train ticket is not relevant.2-58Quick Check Suppose you are trying to decide whether to drive or take the train to Portland to attend a concert. You have ample cash to do either, but you dont want to waste money

45、needlessly. Is the cost of the train ticket relevant in this decision? In other words, should the cost of the train ticket affect the decision of whether you drive or take the train to Portland?A. Yes, the cost of the train ticket is relevant.B. No, the cost of the train ticket is not relevant.2-59Q

46、uick Check Suppose you are trying to decide whether to drive or take the train to Portland to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the annual cost of licensing your car relevant in this decision?A. Yes, the licensing cost is relevant.B.

47、No, the licensing cost is not relevant.2-60Quick Check Suppose you are trying to decide whether to drive or take the train to Portland to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the annual cost of licensing your car relevant in this decisio

48、n?A. Yes, the licensing cost is relevant.B. No, the licensing cost is not relevant.2-61Quick Check Suppose that your car could be sold now for $5,000. Is this a sunk cost?A. Yes, it is a sunk cost.B. No, it is not a sunk cost.2-62Quick Check Suppose that your car could be sold now for $5,000. Is this a sunk cost?A. Yes, it is a sunk cost.B. No, it is not a sunk cost.2-63Summary of the Types of Cost Classifications Financial reporting Predicting cost behavior Assigning costs to cost objects Decision making2-64End of Chapter 2