1. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin Costs Terms, Concepts and Classifications 关于成本的用语、 观念和分类 Noreen - Chapter Two

2. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -2 Learning Objective 1 Identify and give examples of each of the three basic manufacturing cost categories.

3. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -3 The Product Direct Materials 直接材料 Direct Materials 直接材料 Direct Labor 直接人工 Direct Labor 直接人工 Manufacturing Overhead 制造费用 Manufacturing Overhead 制造费用 Manufacturing Costs 制造成本

4. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -4 Direct Materials Raw materials that become an integral part of the product and that can be conveniently traced directly to it. 生产中必不可少的直接形成产成品的原材料成本 Example: A radio installed in an automobile 例如：安装在汽车上的收音机 Example: A radio installed in an automobile 例如：安装在汽车上的收音机

5. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -5 Direct Labor Those labor costs that can be easily traced to individual units of product. 能直接追溯到产品的人工成本。 Example: Wages paid to automobile assembly workers 例如：付给汽车装配线工人的工资。 Example: Wages paid to automobile assembly workers 例如：付给汽车装配线工人的工资。

6. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -6 Manufacturing costs that cannot be traced directly to specific units produced. 制造成本中无法直接追溯到产品的费用。 Manufacturing Overhead Examples: Indirect labor and indirect materials 间接人工和间接材料 Examples: Indirect labor and indirect materials 间接人工和间接材料 Wages paid to employees who are not directly involved in production work. Examples: maintenance workers, janitors and security guards. 维修工人，门卫和保安 Materials used to support the production process. Examples: lubricants and cleaning supplies used in the automobile assembly plant. 汽车装配工厂使用的润滑剂和清洗 用品

7. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -7 Non-manufacturing Costs 非制造成本 Selling Costs 销售成本 Costs necessary to get the order and deliver the product. 取得订单和配送产品的必要费 用 Administrative Costs 管理成本 All executive, organizational, and clerical costs. 行政， 组织和事务成本

8. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -8 Learning Objective 2 Distinguish between product costs and period costs and give examples of each.

9. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -9 Product Costs Versus Period Costs 生产成本 vs 期间费用 Product costs include direct materials, direct labor, and manufacturing overhead. Period costs include all selling costs and administrative costs. Inventory 存货 Cost of Good Sold 销货成本 Balance Sheet 资产负债表 Income Statement 损益表 Sale Expense 费用 Income Statement

10. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -10 Quick Check Which of the following costs would be considered a period rather than a product cost in a manufacturing 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.

11. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -11 Quick Check Which of the following costs would be considered a period rather than a product cost in a manufacturing 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.

12. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -12 Classifications of Costs Direct Material Direct Labor Manufacturing Overhead Prime Cost 主要成本 Conversion Cost 转换成本 Manufacturing costs are often classified as follows:

13. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -13 Comparing Merchandising （销售） and Manufacturing （生产制造） Activities Merchandisers （流通企业）...  Buy finished goods.  Sell finished goods. Manufacturers （制造企业）...  Buy raw materials.  Produce and sell finished goods. MegaLoMart

14. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -14 Balance Sheet Merchandiser Current assets 流动资产  Cash 现金  Receivables 应收款  Prepaid Expenses待摊费用 商品存货  Merchandise Inventory 商品存货 Manufacturer Current Assets u Cash u Receivables u Prepaid Expenses u Inventories 存货 Raw Materials 原材料 Work in Process 在产品 Finished Goods 产成品

15. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -15 Merchandiser Current assets  Cash  Receivables  Prepaid Expenses  Merchandise Inventory Manufacturer Current Assets u Cash u Receivables u Prepaid Expenses u Inventories Raw Materials Work in Process Finished Goods Balance Sheet Partially complete products – some material, labor, or overhead has been added. Completed products awaiting sale. Materials waiting to be processed.

16. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -16 Learning Objective 3 Prepare an income statement including calculation of the cost of goods sold.

17. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -17 The Income Statement Cost of goods sold for manufacturers differs only slightly from cost of goods sold for merchandisers.

18. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -18 Basic Equation for Inventory Accounts Beginning Balance 期初余额 Beginning Balance 期初余额 Additions to inventory 存货增加额 Additions to inventory 存货增加额 ++ == Ending Balance 期末余额 Ending Balance 期末余额 Withdrawals from Inventory 存货减少额 Withdrawals from Inventory 存货减少额 ++

19. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -19 Quick 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.

20. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -20 Quick 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. $1,000 + $100 = $1,100 $1,100 - $300 = $800

21. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -21 Learning Objective 4 Prepare a schedule of cost of goods manufactured.

22. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -22 Schedule of Cost of Goods Manufactured 制造成本表 Calculates the cost of raw material, direct labor and manufacturing overhead used in production. 计算用于生产中的原材料， 直接人工和制造 费用的成本。 Calculates the manufacturing costs associated with goods that were finished during the period. 计算与当期完成产品相关的制造成本。

23. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -23 As items are removed from raw materials inventory and placed into the production process, they are called direct materials. Product Cost Flows 产品成本流

24. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -24 Conversion costs are costs incurred to convert the direct material into a finished product. 转换成本是将直 接材料转换成产 品的成本。 Conversion costs are costs incurred to convert the direct material into a finished product. 转换成本是将直 接材料转换成产 品的成本。 Product Cost Flows

25. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -25 Product Cost Flows All manufacturing costs incurred during the period are added to the beginning balance of work in process. 所有的当期发生的制造成本， 被加到在 产品的期初余额。 All manufacturing costs incurred during the period are added to the beginning balance of work in process. 所有的当期发生的制造成本， 被加到在 产品的期初余额。

26. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -26 Product Cost Flows Costs associated with the goods that are completed during the period are transferred to finished goods inventory. 所有与产品完成相关的当期成本应被转入 产成品账户。 Costs associated with the goods that are completed during the period are transferred to finished goods inventory. 所有与产品完成相关的当期成本应被转入 产成品账户。

27. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -27 Product Cost Flows

28. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -28 Manufacturing Cost Flows 制造成本流 Finished Goods Cost of Goods Sold Selling and Administrative Period Costs Selling and Administrative 销售和行政 Manufacturing Overhead Work in Process Direct Labor Balance Sheet Costs Inventories Income Statement Expenses Material Purchases 材料采购 Raw Materials

29. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -29 Quick Check Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used? A.$276,000 B.$272,000 C.$280,000 D.$ 2,000

30. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -30 Quick Check Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used? A.$276,000 B.$272,000 C.$280,000 D.$ 2,000

31. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -31 Quick Check Direct materials used in production totaled $280,000. Direct labor was $375,000 and factory overhead was $180,000. What were total manufacturing costs incurred for the month? A.$555,000 B.$835,000 C.$655,000 D.Cannot be determined.

32. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -32 Direct materials used in production totaled $280,000. Direct labor was $375,000 and factory overhead was $180,000. What were total manufacturing costs incurred for the month? A.$555,000 B.$835,000 C.$655,000 D.Cannot be determined. Quick Check

33. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -33 Quick 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 inventory at the end of the month. What was the cost of goods manufactured during the month? A.$1,160,000 B.$ 910,000 C.$ 760,000 D.Cannot be determined.

34. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -34 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 inventory at the end of the month. What was the cost of goods manufactured during the month? A.$1,160,000 B.$ 910,000 C.$ 760,000 D.Cannot be determined. Quick Check

35. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -35 Quick Check Beginning finished goods inventory was $130,000. The cost of goods manufactured for the month was $760,000. And the ending finished goods inventory 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.

36. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -36 Quick Check Beginning finished goods inventory was $130,000. The cost of goods manufactured for the month was $760,000. And the ending finished goods inventory 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. $130,000 + $760,000 = $890,000 $890,000 - $150,000 = $740,000

37. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -37 Learning Objective 5 Understand the differences between variable costs and fixed costs.

38. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -38 Cost Classifications for Predicting Cost Behavior 对成本性态的成本分类 How a cost will react to changes in the level of activity within the relevant range. 成本如何相对于业务规模的变化而发生变动  Total variable costs change when activity changes. 业务规模变化时，变动成本随之 变动  Total fixed costs remain unchanged when activity changes. 业务规模发生变化时，固定成本 保持不变 How a cost will react to changes in the level of activity within the relevant range. 成本如何相对于业务规模的变化而发生变动  Total variable costs change when activity changes. 业务规模变化时，变动成本随之 变动  Total fixed costs remain unchanged when activity changes. 业务规模发生变化时，固定成本 保持不变

39. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -39 Variable Cost 变动成本 Your total long distance telephone bill is based on how many minutes you talk. 您的长途电话费是与您通话的时间成正比例的 Minutes Talked 通话时间 Total Long Distance Telephone Bill 话费

40. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -40 Variable Cost Per Unit 单位变动成本 Minutes Talked Per Minute Telephone Charge 每分钟话费 The cost per long distance minute talked is constant. For example, 10 cents per minute. 每分钟的长途话费是固定的，例如每分钟 10 美分

41. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -41 Fixed Cost 固定成本 Your monthly basic telephone bill probably does not change when you make more local calls. 不管你通话次数多少，您的每月基本话费是固定不变的。 Number of Local Calls 本地通话 次数 Monthly Basic Telephone Bill 月基本话费

42. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -42 Fixed Cost Per Unit 单位固定成本 Number of Local Calls Monthly Basic Telephone Bill per Local Call The average fixed cost per local call decreases as more local calls are made. 您本地通话次数越多，每次分摊的单位固定成本就降低。

43. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -43 Cost Classifications for Predicting Cost Behavior

44. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -44 Quick Check Which of the following costs would 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.

45. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -45 Quick Check Which of the following costs would 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.

46. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -46 Learning Objective 6 Understand the differences between direct and indirect costs.

47. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -47 Assigning Costs to Cost Objects 向成本目标分配成本 Direct costs 直接成本 Costs that can be easily and conveniently traced to a unit of product or other cost object. 可以从产品上很方 便地追踪到的成本 Examples: direct material and direct labor Indirect costs 间接成本 Costs that cannot be easily and conveniently traced to a unit of product or other cost object. 无法从产品或其他成本目标 上很方便地追踪到的成本 Example: manufacturing overhead

48. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -48 Learning Objective 7 Define and give examples of cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.

49. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -49 Every decision involves a choice between at least two alternatives. 每个决定需要在至少两个备选项间做选择。 Only those costs and benefits that differ between alternatives are relevant in a decision. All other costs and benefits can and should be ignored. 只有那些在备选项间不同的成本收益才与决策相关。 其 它的都可以忽略。 Cost Classifications for Decision Making 决策中的成本分类

50. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -50 Differential Cost and Revenue Costs and revenues that differ among alternatives. Example: You 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 = $500 Differential cost is: $300

51. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -51 Opportunity Cost 机会成本 The potential benefit that is given up when one alternative is selected over another. 因为选择某个方案而放弃另一个方案的潜在 收益。 Example: If you were not attending college, you could be earning $15,000 per year. Your opportunity cost of attending college for one year is $15,000.

52. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -52 Sunk Costs 沉淀成本 Sunk costs have already been incurred and cannot be changed now or in the future. They should be ignored when making decisions. 沉淀 成本是指过去发生的，并且现在和将来的决策都无法改变其成本发生额的成 本。 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.

53. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -53 Quick 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 don’t 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 train to Portland? A. Yes, the cost of the train ticket is relevant. B. No, the cost of the train ticket is not relevant.

54. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -54 Quick 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 don’t 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 train to Portland? A. Yes, the cost of the train ticket is relevant. B. No, the cost of the train ticket is not relevant.

55. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -55 Quick 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 don’t 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. No, the licensing cost is not relevant.

56. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -56 Quick 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 don’t 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. No, the licensing cost is not relevant.

57. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -57 Quick 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.

58. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -58 Quick 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.

59. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -59 Summary of the Types of Cost Classifications Financial reporting Predicting cost behavior Assigning costs to cost objects Decision making

60. Copyright © The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 2 -60 End of Chapter