成本与管理会计 亨格瑞 第13版 英文版 CA15.pptx

《成本与管理会计 亨格瑞 第13版 英文版 CA15.pptx》由会员分享，可在线阅读，更多相关《成本与管理会计 亨格瑞 第13版 英文版 CA15.pptx（61页珍藏版）》请在得力文库 - 分享文档赚钱的网站上搜索。

1、2023/2/141CONTENTAllocating Costs of a Supporting Department to Operating DepartmentsSingle supporting departmentMulti supporting departmentsAllocating Common CostsCost Allocations and ContractingRevenue Allocation and Bundled Products1第1页/共61页2023/2/142Allocating Costs of a Supporting Department to

2、 Operating DepartmentsSupporting Department which is also called a service department,provides the services that assist other internal departments in the company p423（541）Operating Department which is also called a production department,directly adds value to a product or service第2页/共61页2023/2/143Me

3、thods to Allocate Support Department CostsSingle-Rate Method allocates costs in each cost pool(service department)to cost objects(production departments)using the same rate per unit of a single allocation base p424（542）No distinction is made between fixed and variable costs in this method Single-rat

4、e method is simple to implement,but treats fixed costs in a manner similar to variable costs第3页/共61页2023/2/144Example P424（542）Practical capacity 18750hoursFixed costs of operating the computer facility$3000000Budgeted long-run usage in hours Microcomputer division 8000hoursPeripheral equipment divi

5、sion 4000hoursBudgeted variable cost per hour in 6000-hour to 18750-hour relevant range$200 per hour usedActual usage in 2009 in hours Microcomputer division 9000hoursPeripheral equipment division 3000hours第4页/共61页2023/2/145Example for Single-Rate MethodBudgeted usage 12000hours P424(542)Budgeted to

6、tal cost pool$3000000+12000hours$200 per hour=$5400000 Budgeted total rate per hour$540000012000hours=$450 per hour usedAllocation rate for Microcoputer division and Peripheral equipment division$450 per hour usedAllocation cost for Microcoputer division 9000hours$450 per hour used=$4050000 Allocati

7、on cost for Peripheral equipment division 3000hours$450 per hour used=$1350000 第5页/共61页2023/2/146Methods to Allocate Support Department Costs，conts.Dual-Rate Method segregates costs within each cost pool into two segments:a variable-cost pool and a fixed-cost pool.P424(542)Each pool uses a different

8、 cost-allocation baseDual-rate method treats fixed and variable costs more realistically,but is more complex to implement第6页/共61页2023/2/147Example for Dual-Rate MethodBudgeted fixed-costs rate P424(542)$3000000(Budgeted)12000(Budgeted or actual)hours=$250 per hour usedThe costs Allocated for Microco

9、mputer divisionFixed costs 8000(Budgeted)hours$250 per hour=$2000000 variable costs 9000(actual)hours$200 per hour=$1800000 The costs Allocated for Peripheral equipment divisionFixed costs 4000(Budgeted)hours$250 per hour=$1000000 variable costs 3000(actual)hours$200 per hour=$600000第7页/共61页2023/2/1

10、48Allocation BasesUnder either method,allocation of support costs can be based on one of the three following scenarios:Budgeted overhead rate and budgeted hoursBudgeted overhead rate and actual hoursActual overhead rate and actual hours第8页/共61页2023/2/149Example for Allocation BasesSingle-Rate Method

11、 P425(543)Budgeted fixed-costs rate$3000000(Budgeted)18750(capacity)hours=$160 per hour usedBudgeted variable-costs rate$200 per hour usedAllocation cost for Microcomputer division9000hours$360 per hour used=$3240000 Allocation cost for Peripheral equipment division3000hours$360 per hour used=$10800

12、00Fixed costs of unused computer capacity 6750hours$160 per hour used=$1080000第9页/共61页2023/2/1410Example for Allocation Bases,conts.Dual-Rate MethodBudgeted fixed-costs rate$3000000(Budgeted)18750(capacity)hours=$160 per hour usedBudgeted variable-costs rate$200 per hour usedThe costs Allocated for

13、Microcomputer divisionFixed costs 8000(Budgeted)hours$160 per hour=$1280000 variable costs 9000(actual)hours$200 per hour=$1800000 The costs Allocated for Peripheral equipment division Fixed costs 4000(Budgeted)hours$160 per hour=$640000 variable costs 3000(actual)hours$200 per hour=$600000Fixed cos

14、ts of unused computer capacity 6750hours$160 per hour used=$1080000第10页/共61页2023/2/1411Allocation Bases,conts.第11页/共61页2023/2/1412Allocation Bases，conts.Choosing between actual and budgeted ratesWhen allocations are based on budgeted usage user divisions know in advance their allocated costs.This ca

15、n be of benefit in short-term and long-term planning.A disadvantage of using budgeted costs is that there is an incentive for managers to underestimate their planned usagethus being assigned a lower percentage of allocated costs.This can be overcome in part by assessing a higher charge for exceeding

16、 budgeted usage.第12页/共61页2023/2/1413Allocation Bases，conts.Allocating costs based on actual usage give a more accurate allocation based on actual costs and usage.Actual allocations have several disadvantages:a lack of timely information,reduced incentives for support to manage costs,and increased ac

17、counting costs.第13页/共61页2023/2/1414Allocation Bases，conts.A third approach is to allocate fixed costs on the basis of practical capacity supplied.This approach will charge each division with services actually used.In addition,variations in actual usage in one division will not affect allocations in

18、other divisions.Finally,the costs of unused capacity are highlighted and not allocated to divisions.第14页/共61页2023/2/1415Allocation Bases，conts.Generally,it is found to be preferable to allocate fixed costs based on capacity,under the approach that fixed costs provide capacity and variable costs allo

19、cated based on actual usage.第15页/共61页2023/2/1416Methods of Allocating multiple Support Costs to Production DepartmentsDirect Method Allocates support costs only to Operating DepartmentsNo interaction between Support Departments prior to allocation第16页/共61页2023/2/1417Methods of Allocating multiple Su

20、pport Costs to Production Departments，conts.Direct Method第17页/共61页2023/2/1418Example P429(547)第18页/共61页2023/2/1419METHODS OF ALLOCATING MULTIPLE SUPPORT COSTS TO PRODUCTION DEPARTMENTS ，CONTS.Plant maintenanceInformation systems 2023/2/1419第19页/共61页2023/2/1420EXAMPLE P430（548）20第20页/共61页2023/2/14212

21、1第21页/共61页2023/2/1422Methods of Allocating multiple Support Costs to Production Departments，conts.Step-Down MethodAllocates support costs to other support departments and to operating departments that partially recognizes the mutual services provided among all support departmentsOne-way interaction

22、between Support Departments prior to allocation第22页/共61页2023/2/1423Methods of Allocating multiple Support Costs to Production Departments，conts.Step-Down Method第23页/共61页2023/2/142424第24页/共61页2023/2/1425第25页/共61页2023/2/1426METHODS OF ALLOCATING MULTIPLE SUPPORT COSTS TO PRODUCTION DEPARTMENTS ，CONTS.

23、First ，Plant maintenanceThen，Information systems 2023/2/1426第26页/共61页2023/2/1427METHODS OF ALLOCATING MULTIPLE SUPPORT COSTS TO PRODUCTION DEPARTMENTS ，CONTS.But why：First ，Plant maintenance；Then，Information systems Plant maintenance benefits from Information systems：Can be ignore！Information system

24、s benefits from Plant maintenance：2023/2/1427第27页/共61页2023/2/1428Methods of Allocating multiple Support Costs to Production Departments，conts.A common step-down sequence begins with the support department that renders the highest percentage of its total services to other support departments.Another

25、approach is to begin with the department providing the highest dollar amount to other support departments.Once costs are allocated out of a support department under the step-down method,no additional costs are allocated to that department.第28页/共61页2023/2/1429Methods of Allocating multiple Support Co

26、sts to Production Departments，conts.Reciprocal MethodAllocates support department costs to operating departments by fully recognizing the mutual services provided among all support departmentsFull two-way interaction between Support Departments prior to allocationThere are two ways.Using repeated it

27、eration.see Exhibit 15-5Using linear equation.see Exhibit 15-6第29页/共61页2023/2/1430Methods of Allocating multiple Support Costs to Production Departments，conts.Reciprocal Method第30页/共61页2023/2/1431第31页/共61页2023/2/1432Methods of Allocating multiple Support Costs to Production Departments，conts.第32页/共6

28、1页2023/2/1433Methods of Allocating multiple Support Costs to Production Departments，conts.第33页/共61页2023/2/1434Methods of Allocating multiple Support Costs to Production Departments，conts.第34页/共61页2023/2/1435Methods of Allocating multiple Support Costs to Production Departments，conts.第35页/共61页2023/2/

29、1436Methods of Allocating multiple Support Costs to Production Departments，conts.第36页/共61页2023/2/1437Methods of Allocating multiple Support Costs to Production Departments，conts.第37页/共61页2023/2/1438第38页/共61页2023/2/1439Methods of Allocating multiple Support Costs to Production Departments，conts.第39页/

30、共61页2023/2/1440Methods of Allocating multiple Support Costs to Production Departments，conts.第40页/共61页2023/2/1441Methods of Allocating multiple Support Costs to Production Departments，conts.Choosing Between Methods p434（552）The direct and step-down methods have the advantage of simplicity.The recipro

31、cal method is theoretically the most precise,but is difficult to implement,especially with a large number of support departments.However,this difficulty is being lessened by the use of computers.the company should consider the amount of differences obtained under each of the approaches.第41页/共61页2023

32、/2/1442Allocating Common CostsCommon Cost the cost of operating a facility,activity,or like cost object that is shared by two or more users at a lower cost than the individual cost of the activity to each user p436（554）Two methods that are frequently used for these allocations are the stand-alone co

33、st-allocation method and the incremental cost-allocation method.第42页/共61页2023/2/1443Methods of Allocating Common CostsStand-Alone Cost-Allocation Method determines the weights for cost allocation by considering each user of the cost as a separate entity.The cost is allocated among the users based up

34、on the total cost for each separately.Individual costs are added together and allocation percentages are calculated from the whole,and applied to the common cost第43页/共61页2023/2/1444Example for Stand-Alone Cost-Allocation MethodJason stevens has been invited to a job interview.the round-trip seattle-

35、albany airfare costs1200the round-trip seattle-chicago airfare costs800the trip seattle-albany chicago-seattle airfare costs1500第44页/共61页2023/2/1445Methods of Allocating Common Costs，conts.Incremental Cost-Allocation Method：ranks the individual users of a cost object in the order of users most respo

36、nsible for a common cost and then uses this ranking to allocate the cost among the usersThe first ranked user is the Primary User and is allocated costs up to the costs of the primary user as a stand-alone user(typically gets the highest allocation of the common costs)第45页/共61页2023/2/1446Methods of

37、Allocating Common Costs，conts.The second ranked user is the First Incremental User and is allocated the additional cost that arises from two users rather than oneSubsequent users handled in the same manner as the second ranked userprimary party receives the highest costs.so this method requires to b

38、e ranked base on interview date.Shapley value method-allocates to each employer,the average of the costs allocated as primary party and an incremental party第46页/共61页2023/2/1447Example of Incremental Cost-Allocation MethodCost allocated total0Albany(primary)Chicago(incremental)150012003002Chicago(pri

39、mary)Albany(incremental)15008007003Chicago(average)Albany(average)1500第47页/共61页2023/2/1448Cost Allocations and ContractingFrequently,the price paid on a contract may be based on some definition of cost.P437（555）In order to bill the price correctly,there must be explicit agreement about the definitio

40、ns of cost,and what can be included and excluded.Contract disputes often arise with respect to cost allocation.This highlights the importance of explicit definitions of the contract terms.第48页/共61页2023/2/1449Cost Allocations and Contracting,conts.The US government reimburses most contractors in eith

41、er of two main ways:The contractor is paid a set price without analysis of actual contract cost dataThe contractor is paid after an analysis of actual contract cost data.In some cases,the contract will state that the reimbursement amount is based on actual allowable costs plus a fixed fee(cost-plus

42、contract)第49页/共61页2023/2/1450Cost Allocations and Contracting,conts.In many government contracts there is a great deal of uncertainty about the final cost to produce new equipment.This is especially true in defense department contracting.Due to the uncertainty involved,these contracts are rarely sub

43、jected to competitive bidding.第50页/共61页2023/2/1451Cost Allocations and Contracting,conts.To be fair to all in the pricing of the merchandise,the government will assume a share of the risk of potentially high costs with a cost-plus contract.p438（556）An allowable cost is a cost that the contract parti

44、es agree to include in the costs to be reimbursed.第51页/共61页2023/2/1452Revenue Allocation and Bundled ProductsRevenue Allocation occurs when revenues are related to a particular revenue object but cannot be traced to it in an economically feasible mannerRevenue Object anything for which a separate me

45、asurement of revenue is desired p438（556）include product,customers,divisions.第52页/共61页2023/2/1453Revenue Allocation and Bundled ProductsBundled Product a package of two or more products or services that are sold for single price,but individual components of the bundle also may be sold as separate it

46、ems at their own“stand-alone”prices第53页/共61页2023/2/1454Methods to Allocate Revenue to Bundled ProductsStand-Alone(separate)Revenue Allocation Method uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products.Three types o

47、f weights may be used:Selling PricesUnit CostsPhysical Units第54页/共61页2023/2/1455Example for Methods to Allocate Revenue to Bundled ProductsSelling priceManufacturing cost per unitStand alonewordmaster12518spreadmaster15020financemaster22525suiteWord+spread220Word+finance280finance+spread305Word+fina

48、nce+spread380第55页/共61页2023/2/1456Example for Stand-Alone(separate)Revenue Allocation Method 第56页/共61页2023/2/1457Example for Stand-Alone(separate)Revenue Allocation Method,conts.第57页/共61页2023/2/1458Methods to Allocate Revenue to Bundled ProductsIncremental Revenue-Allocation Method ranks individual p

49、roducts in a bundle according to criteria determined by management and then uses this ranking to allocate bundled revenues to individual products(similar to earlier discussed Incremental Cost-Allocation Method)The first-ranked product is the primary productThe second-ranked product is the first incr

50、emental productThe third-ranked product is the second incremental product,etc.第58页/共61页2023/2/1459Example for Incremental Revenue-Allocation Method Cost allocated total1word(primary)finance(incremental)2801251552finance(primary)word(incremental)280225553finance(average)word(average)280第59页/共61页2023/