4 -1 Activity-Based Costing 以作业为基础 的成本计算 CHAPTR5

Discuss the importance of unit costs. 2.Describe functional-based( 以功能性为基础 ) costing approaches. 3.Explain why functional-based costing approaches may produce distorted 扭曲 costs. 4.Explain how an activity-based costing system works for product costing. 5.Provide a detailed description of how activities can be grouped into homogeneous 同质 sets to reduce the number of activity rates. ObjectivesObjectives

4 -3 Unit cost 单位成本 is the total cost associated with( 与 … 相关 ) the units produced( 产量 ) divided by the number of units produced. Inventory valuation Income determination Providing input to a variety of decisions such as pricing, make or buy, and accept or reject special orders Unit cost is used for--一、有关术语一、有关术语

4 -4 Product cost 生产成本 is defined as the sum of direct materials, direct labor, and manufacturing overhead( 制造费用 ). It is required for external financial reporting. Product cost 生产成本 is defined as the sum of direct materials, direct labor, and manufacturing overhead( 制造费用 ). It is required for external financial reporting.

4 -5 Cost measurement 成本计量 consists of determining the dollar amounts of direct materials, direct labor, and overhead used in production.

4 -6 The process of associating the costs, once measured, with the units produced is called cost assignment 成本分配.

4 -7 Two possible measurement systems are actual costing and normal costing. Measurement Systems Actual costing 实际成本法 assigns the actual costs of direct materials, direct labor, and overhead to products. Normal costing 正常成本法 assigns the actual costs of direct materials and direct labor to products; however, overhead cots are assigned to products using predetermined rates( 预定 分配率 ).

4 -8 Measurement Systems predetermined overhead rate --- a rate based on estimated data. Budgeted (estimated) cost Estimated activity usage

4 -9 Functional-based costing (or Traditional cost accounting) techniques used by most organizations prior to 1990s. Uses easy to obtain drivers, eg. sales dollars or sales volume, to spread overhead( 间接费用 ) to products/ services/customers. Used for both internal and external costing Simpler than Activity-Based Costing( 作业成本法 ) Distorts costs so high volume products/services are over-costed( 成本高估 ) and low volume are under- costed 二、为什么传统成本法会扭曲成本二、为什么传统成本法会扭曲成本

4 -10 Examples of Unit-Level 单位水平 Drivers 动因 Units produced 产量 Direct labor hours( 简 :DLH) Direct labor dollars Machine-hours 机器小时 (MH) Direct material dollars

4 -11 Units (of driver) Time Theoretical 理论 Practical 实际 Normal 正常 Expected actual 预计实际数

4 -12 Functional-Based Costing 传统成本计算 Plantwide Rate 全厂分配率 Functional-Based Costing 传统成本计算 Plantwide Rate 全厂分配率 Overhead Costs 制造费用 Assign Costs Plantwide Pool 全厂成本库 Assign Costs Products Direct Tracing 直接追溯 Stage 1: Pool 库 Formation 形成 Unit-Level 单位水平 Driver Stage 2: Costs Assigned 成本分配

4 -13 例子 : Belring, Inc. Belring, Inc. produces two telephones: a cordless and a regular model. The company has the following actual and budgeted data: Budgeted overhead$360,000 Expected activity (DLH)100,000 Actual activity (DLH)100,000 Actual overhead$380,000

4 -14 Predetermined Overhead Rate = Belring, Inc. Budgeted (estimated) cost Estimated activity usage Predetermined Overhead Rate = $360, ,000 DLH Predetermined Overhead Rate = $3.60 per DLH

4 -15 The total overhead assigned to actual production is called applied 已采用的 overhead ( 已分配 的制造费用 ). Applied overhead = Overhead rate 间接 费用率 x Actual activity output 实际业务量

4 -16 Belring, Inc. Applied overhead = Overhead rate x Actual activity output = $3.60 x 100,000 DLH = $360,000

4 -17 CordlessRegular Prime costs$ 78,000$ 738,000 Overhead costs: $3.60 x 10,00036, $3.60 x 90, ,000 Total manufacturing costs$114,000$1,062,000 Units produced  10,000  100,000 Unit cost $ 11.40$ Belring, Inc. Per-Unit Cost 每单位成本

4 -18 Overhead Costs Assign Costs ProductsProducts Stage One: Pool Formation Unit-Level Drivers Stage Two: Costs Assigned Department Rates 部门分配率 Department A Pool Department B Pool Allocation 分摊 Direct Tracing 直接追溯 Driver Tracing 动因追溯

4 -19 Budgeted overhead$252,000$108,000 Departmental Data 部门数据 Belring, Inc. Fabrication 加工 Assembly 装配 Fabrication 加工 Assembly 装配 Expected and actual usage (dlh): Cordless7,0003,000 Regular 13,000 77,000 20,00080,000 Expected and actual usage (mh.): Cordless4,0001,000 Regular36,0009,000 40,00010,000

4 -20 Belring, Inc. Applied 已分配 overhead =($6.30 x actual MH) + ($1.35 x actual DLH) = ($6.30 x 40,000) + ($1.35 x 80,000) = $360,000 = $252,000 + $108,000

4 -21 Belring, Inc. Per-Unit Cost: Departmental Rates 部门分配率  单位成本 Per-Unit Cost: Departmental Rates 部门分配率  单位成本 CordlessRegular Prime costs$ 78,000$ 738,000 Overhead costs: ($6.30 x 4,000) + ($1.35 x 3,000)29, ($6.30 x 36,000) + (1.35 x 77,000) ,750 Total manufacturing costs$107,250$1,068,750 Units produced  10,000  100,000 Unit cost $ 10.73$ 10.69

4 -22 过时成本法的症状 Symptoms of an Outdated Functional Cost System 1.The outcome of bids is difficult to explain. 2.Competitors’ prices appear unrealistically low. 3.Products that are difficult to produce show high profits. 4.Operational managers want to drop products that appear profitable. 5.Profit margins are difficult to explain. ContinuedContinued

4 -23 Symptoms of an Outdated Functional Cost System 6.The company has a highly profitable niche all to itself. 7.Customers do not complain about price increases. 8.The accounting department spends a lot of time supplying cost data for special projects. 9.Some departments are using their own accounting system. 10.Product costs change because of changes in financial reporting regulations.

4 -24 Plantwide and departmental rates using unit-level 单 位基准 drivers may not assign overhead costs accurately if: the proportion of nonunit-level 非单位基准 overhead costs to total overhead costs is large, and the degree of product diversity 产品差异 is great.

有关概念 Non-unit activity drivers--- factors that measure the consumption of non-unit activities by products and other cost objects. 三、作业成本法的优点三、作业成本法的优点

4 -26 Units produced per year10,000100,000110,000 Prime costs$78,000$738,000$816,000 Direct labor hours10,00090,000100,000 Machine hours5,00045,00050,000 Production runs Number of moves 续前例 : Belring, Inc. Activity Usage Measures Product-Costing Data 生产成本数据 CordlessRegularTotal

4 -27 A homogeneous cost pool 同质成本库 is a collection of overhead costs that are logically related to the tasks being performed, that have the same consumption ratios for all products, and for which cost variations can be explained by a single activity driver. Unit-level activities 单位作业 are those that are performed each time a unit is produced. 使单位产品或服务受益的作业，它对 资源的消耗量往往与产品的产量或销量成正比。常见的作业如加工零件、每件 产品进行的检验等； Eg. Power and machine hours are used each time a unit is produced. Direct materials and direct labor activities are also unit-level activities, even though they are not overhead costs. Classification of Activities

4 -28 Batch-level activities 批量作业 are those that are performed each time a batch of products is produced. 使一批产品受益的作业，作业的成本与产 品的批次数量成正比. Eg: Setups 准备, inspections 检验, production scheduling 生产流程编制, and material handling 材料处理 ( 或搬运 ). Classification of Activities

4 -29 Product-level (sustaining) activities 产品 ( 维持 ) 作业 are those that are performed as needed to support the various products produced by a company. These activities consume inputs that develop products or allow products to be produced and sold. 使某种产品的每个单位都受益的作业。 Examples: Engineering changes 工程的变动, process engineering 过程的设计, and expediting 紧急交货. Classification of Activities

4 -30 Facility-level activities 设备作业 are those that sustain a factory's general manufacturing processes. ( 支持作业：为维持企业正常生产，而使 所有产品都受益的作业，作业的成本与产品数量 无相关关系。 ) Examples: Plant management 工厂管理, landscaping 土地规划, maintenance 维护, security 安 全设施, propertytaxes 物业税, and plant depreciation 工厂折旧. Classification of Activities

4 -31 认定作业可采用几种方法： 一是绘制企业的生产流程图，将企业的各种经营过 程以网络的形式表现出来，每一个流程都分解出 几项作业，最后将相关或同类作业归并起来； 二是从企业现有的职能部门出发，通过调查分析， 确定各个部门的作业，再加以汇总； 最后是召集全体员工开会，由员工或工作组描述其 所完成的工作，再进行汇总，这种办法有助于提 高全体员工的参与意识，加速作业成本管理的实 施。前两种办法可以较快取得资料，准确性高， 不会对员工造成干扰。

4 -32 DriverFilterDriverFilterDriverFilter Unit Level 单位水平 Batch Level 批量水平 Product Level 产品水平 Facility Level 设备水平 具体作业 A 1 AAAA 2345 Set 1 Set 2 Set 3 Set 4 Set 5 Set 6 Set 7 Activity Level 水 平 Filter 同质作业组

4 -33 ActivityActivity Cost Belring, Inc. Setups$120,000 Material handling60,000 Machining100,000 Testing 80,000 Total$360,000 Overhead Activities Product-Costing Data

ABC 步骤 : Two-Stage Assignment Cost of Resources 资源成本 Assign Costs Activities Products S1: 作业 成本库 Direct Tracing Driver Tracing S2: 分配 后的成本

4 -35 Belring, Inc. Product Diversity: Consumption Ratios Setups Production runs Material handling Number of moves Machining Machine hours Testing Direct labor hours Overhead Cordless Regular Activity Activity Phone Phone Driver aa bb cc d d 20/30 (cordless) and 10/30 (regular) a

4 -36 Belring, Inc. Product Diversity: Consumption Ratios Setups Production runs Material handling Number of moves Machining Machine hours Testing Direct labor hours Overhead Cordless Regular Activity Activity Phone Phone Driver aa bb cc d d 60/90 (cordless) and 30/90 (regular) b

4 -37 Belring, Inc. Product Diversity: Consumption Ratios Setups Production runs Material handling Number of moves Machining Machine hours Testing Direct labor hours Overhead Cordless Regular Activity Activity Phone Phone Driver aa bb cc d d 5,000/50,000 (cordless) and 45,000/50,000 (regular) c

4 -38 Belring, Inc. Product Diversity: Consumption Ratios Setups Production runs Material handling Number of moves Machining Machine hours Testing Direct labor hours Overhead Cordless Regular Activity Activity Phone Phone Driver aa bb cc d d 10,000/100,000 (cordless) and 90,000/100,000 (regular) d

4 -39 Setup rate:$120,000/30 =$4,000 per run Material-handling rate: $60,000/90 = $ per move Machining rate:$100,000/50,000 = $2 per MH Testing rate:$80,000/100,000 = $0.80 per DLH Belring, Inc. Activity Rates

4 -40 CordlessRegular Prime costs$ 78,000$ 738,000 Overhead costs: Setups 80,00040,000 Material handling40,00020,000 Machining10,00090,000 Testing 8,000 72,000 Total manufacturing costs$216,000$ 960,000 Units produced  10,000  100,000 Unit cost (total costs/units)$ $ 9.60 Belring, Inc. Activity Rates 作业分配率 $4,000 x 20 $4,000 x 10 $667 x 60 $667 x 30 $2 x 5,000 $2 x 45,000 $0.80 x 10,000 $0.80 x 90,000

4 -41 Plantwide rate$11.40$10.62 Departmental rate Activity rate Comparison of Unit Costs Cordless Regular Belring, Inc.

4 -42 A primary activity is one that is consumed by a product or customer. A secondary activity is one that is consumed by other primary and secondary activities.

4 -43 Resource drivers are factors that measure the consumption of resources by activities.

4 -44 Key characteristics of ABC implementation 应用之关键 : 1. the nonunit-based costs should be a significant percentage of total overhead costs. 2. the consumption ratios of unit-based and nonunit-based activities must differ. 3. the benefits of an ABC system must exceed its costs. Activity-Based Costing 的优点 : In a functional-based cost system, the demand for overhead is assumed to be explained only by unit-level cost drivers. ABC produces more accurate product costs by more accurately tracing the consumption of overhead resources to products.

4 -45 Customer Costing versus Product Costing

4 -46 Large Customer Ten Smaller Customers (50% of sales) (50% of sales) Units purchased500,000500,000 Orders placed2200 Number of sales calls10210 Manufacturing cost$3,000,000$3,000,000 Order-filling costs allocated $202,000$202,000 Sales-force costs allocated$110,000$110,000 ExampleExample

4 -47 The purchasing manager uses two suppliers, Murray Inc. and Plata Associates, as the source of two machine parts: Part A1 and Part B2. ExampleExample ActivityCosts Repairing products$800,000 Expending products200,000

4 -48 ExampleExample Murray Inc.Plata Associates Part A 1 Part B2 Unit purchase price$20$52$24$56 Units purchased80,00040,00010,00010,000 Failed units1, Late shipments Repair rate = $800,000 ÷ 2,000 = $400 per failed part Expediting rate = $200,000 ÷ 100 = $2,000 per late delivery (1, )

4 -49 ExampleExample Murray Inc.Plata Associates Part A 1 Part B2 Purchase cost$1,600,000$2,080,000$240,000$560,000 Repairing products640,000152,0004,0004,000 Expediting products 120,000 80,000 Total costs$2,360,000$2,312,000$244,000$564,000 Units÷ 80,000÷ 40,000÷ 10,000÷ 10,000 Total unit cost$ 29.50$ 57.80$ 24.40$ 56.40

4 -50 The End of ABC