Nội dung

Managerial and Cost Accounting © 2009 Larry M. Walther, under nonexclusive license to Christopher J. Skousen & Ventus Publishing ApS. All material in this publication is copyrighted, and the exclusive property of Larry M. Walther or his licensors (all rights reserved). ISBN 978-87-7681-491-5 Download free ebooks at bookboon.com 2 Contents Managerial and Cost Accounting Contents Part 1. Introduction to Managerial Accounting 9 1. 1.1 Managerial Accounting Professional Certifications in Management Accounting 10 10 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.6.1 2.6.2 2.6.3 2.7 2.7.1 2.7.2 Planning, Directing, and Controlling Decision Making Planning Strategy Positioning Budgets Directing Costing Production Analysis Controlling Monitor Scorecard 11 11 12 13 14 16 16 17 19 21 22 22 23 3. Cost Components 26 4. 4.1 Product Versus Period Costs Period Costs 28 28 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines, London Business School’s Masters in Management provides specific and tangible foundations for a successful career in business. This 12-month, full-time programme is a business qualification with impact. In 2010, our MiM employment rate was 95% within 3 months of graduation*; the majority of graduates choosing to work in consulting or financial services. As well as a renowned qualification from a world-class business school, you also gain access to the School’s network of more than 34,000 global alumni – a community that offers support and opportunities throughout your career. For more information visit www.london.edu/mm, email mim@london.edu or give us a call on +44 (0)20 7000 7573. * Figures taken from London Business School’s Masters in Management 2010 employment report Download free ebooks at bookboon.com 3 Contents Managerial and Cost Accounting 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Financial Statement Issues that are Unique to Manufacturers Schedule of Raw Materials Schedule of Work in Process Schedule of Cost of Goods Manufactured Schedule of Cost of Goods Sold The Income Statement Reviewing Cost of Flow Concepts for a Manufacturer Critical Thinking About Cost Flow 29 29 30 31 31 32 32 34 Part 2. Cost-Volume-Profit and Business Scalability 36 6. 6.1 6.2 6.3 6.4 6.5 6.6 Cost Behavior The Nature of Costs Variable Costs Fixed Costs Business Implications of the Fixed Cost Structure Economies of Scale Dialing in Your Business Model 37 37 37 38 40 40 42 7. 7.1 7.2 7.3 7.4 Cost Behavior Analysis Mixed Costs High-Low Method Method of Least Squares Recap 44 44 45 46 49 Please click the advert Teach with the Best. Learn with the Best. Agilent offers a wide variety of affordable, industry-leading electronic test equipment as well as knowledge-rich, on-line resources —for professors and students. We have 100’s of comprehensive web-based teaching tools, lab experiments, application notes, brochures, DVDs/ CDs, posters, and more. See what Agilent can do for you. www.agilent.com/find/EDUstudents www.agilent.com/find/EDUeducators © Agilent Technologies, Inc. 2012 u.s. 1-800-829-4444 canada: 1-877-894-4414 Download free ebooks at bookboon.com 4 8. 8.1 8.2 8.3 8.4 8.5 8.6 Break-Even and Target Income Contribution Margin Contribution Margin: Aggregated, per Unit, or Ratio? Graphic Presentation Break-Even Calculations Target Income Calculations Critical Thinking About CVP 50 50 50 51 52 53 54 9. 9.1 9.2 9.3 9.4 9.5 9.6 Sensitivity Analysis Changing Fixed Costs Changing Variable Costs Blended Cost Shifts Per Unit Revenue Shifts Margin Beware Margin Mathematics 55 55 56 57 57 58 59 10. 10.1 CVP for Multiple Products Multiple Products, Selling Costs, and Margin Management 60 61 11. Assumptions of CVP 62 Part 3. Job Costing and Modern Cost Management Systems 63 Basic Job Costing Concepts Cost Data Determination Conceptualizing Job Costing Tracking Direct Labor Tracking Direct Materials 64 64 64 66 66 Please click the advert 12. 12.1 12.2 12.3 12.4 You’re full of energy and ideas. And that’s just what we are looking for. © UBS 2010. All rights reserved. Contents Managerial and Cost Accounting Looking for a career where your ideas could really make a difference? UBS’s Graduate Programme and internships are a chance for you to experience for yourself what it’s like to be part of a global team that rewards your input and believes in succeeding together. Wherever you are in your academic career, make your future a part of ours by visiting www.ubs.com/graduates. www.ubs.com/graduates Download free ebooks at bookboon.com 5 Contents Please click the advert Managerial and Cost Accounting 12.5 12.6 12.7 12.8 12.9 12.10 Tracking Overhead Job Cost Sheets Expanding the Illustration Another Expansion of the Illustration Database Versus Spreadsheets Moving Beyond the Conceptual Level 67 69 69 71 71 72 13. 13.1 13.2 13.3 Information Systems for the Job Costing Environment Direct Material Direct Labor Overhead and Cost Drivers 73 73 73 74 14. 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 Tracking Job Cost Within the Corporate Ledger Direct Material Direct Labor Applied Factory Overhead Overview Financial Statement Impact Scenarios Cost Flows to the Financial Statements Subsidiary Accounts Global Trade and Transfers 76 76 79 79 80 81 83 83 84 15. 15.1 15.2 15.3 15.4 15.5 15.6 Accounting for Actual and Applied Overhead The Factory Overhead Account Actual Overhead The Balance of Factory Overhead Underapplied Overhead Overapplied Overhead Influence of Gaap 360° thinking 360° thinking . . 85 85 86 86 87 88 89 360° thinking . Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. Download free ebooks at bookboon.com Discover the truth6at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. © Deloitte & Touche LLP and affiliated entities. D Contents Managerial and Cost Accounting Job Costing in Service, Not For-Profit, and Governmental Environments The Service Sector Capacity Utilization 91 92 92 17. 17.1 17.2 17.3 17.4 17.5 17.6 17.7 Modern Management of Costs and Quality Global Competition Kaizen Lean Manufacturing Just in Time Inventory Total Quality Management Six Sigma Reflection on Modern Cost Management 93 93 93 95 96 96 97 98 Part 4. Process Costing and Activity-Based Costing 99 18. 18.1 18.2 18.3 18.4 18.5 18.6 18.7 Process Costing Process Costing Comparing Job and Process Costing Introduction to the Cost of Production Report Job Costing Flows Process Costing Flows Job Costing Flows on Job Cost Sheets Process Costing Flows on Cost of Production Reports 100 100 101 101 102 103 103 103 19. 19.1 19.2 19.3 Equivalent Units Factors of Production An Illustration of Equivalent Units Calculations Cost per Equivalent Unit 104 104 104 107 Please click the advert 16. 16.1 16.2 Download free ebooks at bookboon.com 7 Contents Managerial and Cost Accounting 20. 20.1 20.2 20.3 20.4 20.5 Cost Allocation to Completed Units and Units in Process Cost of Production Report Journal Entries Subsequent Departments The Big Picture FIFO Process Costing 21. 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 Activity-Based Costing Pros of ABC Cons of ABC The Reality of ABC A Closer Look at ABC Concepts The Steps to Implement ABC A Simple Analogy A Case Study in ABC Study Process and Costs Identify Activities Determine Traceable Costs and Allocation Rates Assign Costs to Activities Determine Per-Activity Allocation Rates Apply Costs to Cost Objects What Just Happened? A Great Tool, But not a Panacea 108 109 110 112 114 115 115 115 116 116 117 122 123 124 125 126 127 127 129 129 129 your chance Please click the advert to change the world Here at Ericsson we have a deep rooted belief that the innovations we make on a daily basis can have a profound effect on making the world a better place for people, business and society. Join us. In Germany we are especially looking for graduates as Integration Engineers for • Radio Access and IP Networks • IMS and IPTV We are looking forward to getting your application! To apply and for all current job openings please visit our web page: www.ericsson.com/careers Download free ebooks at bookboon.com 8 Introduction to Managerial Accounting Managerial and Cost Accounting Introduction to Managerial Accounting Part 1 Your goals for this “managerial accounting introduction” chapter are to learn about: x The distinguishing characteristics of managerial accounting. x The role of managerial accounting in support of planning, directing, and controlling. x Key production cost components: direct materials, direct labor, and factory overhead. x Product costs versus period costs. x Categories of inventory for manufacturers and related financial statement implications. Download free ebooks at bookboon.com 9 Introduction to Managerial Accounting Managerial and Cost Accounting 1. Managerial Accounting Early portions of this textbook dealt mostly with financial accounting. Financial accounting is concerned with reporting to external parties such as owners, analysts, and creditors. These external users rarely have access to the information that is internal to the organization, nor do they specify the exact information that will be presented. Instead, they must rely on the general reports presented by the company. Therefore, the reporting structure is well defined and standardized. The methods of preparation and the reports presented are governed by rules of various standard-setting organizations. Furthermore, the external users generally see only the summarized or aggregated data for an entity. In contrast, managers of a specific business oftentimes need or desire far more detailed information. This information must be tailored to specific decision-making tasks of managers, and its structure becomes more “free formed.” Such managerial accounting information tends to be focused on products, departments, and activities. In this context, the management process is intended to be a broad reference to encompass marketing, finance, and other disciplines. Simply stated: managerial accounting is about providing information in support of the internal management processes. Many organizations refer to their internal accounting units as departments of strategic finance. This title is more reflective of their wide range and scope of duties. Managerial accounting is quite different from financial accounting. External reporting rules are replaced by internal specifications as to how data are to be accumulated and presented. Hopefully, these internal specifications are sufficiently logical that they enable good economic decision making. For example, specific reporting periods may be replaced with access to real-time data that enable quick responses to changing conditions. And, forecasted outcomes become more critical for planning purposes. Likewise, cost information should be disseminated in a way that managers can focus on (and be held accountable for!) those business components (“segments”) under their locus of control. In short, the remainder of this book is about the ideas and methods that can be used to provide accounting information in direct support of the “broadly defined” role of managing a business organization. If you aspire to work in strategic finance, the remainder of this book is your introductory primer. But, for most readers -- those who must manage some part of an organization -the remainder of this book is your guide to knowing how and when the management accountant’s tools can be used to help you do your job better! 1.1 Professional Certifications in Management Accounting You are no doubt familiar with the CPA (certified public accountant) designation; it is widely held and recognized. The certification is usually accompanied by a state issued license to practice public accounting. However, there are also CMA (certified management accountant) and CFM (certified financial manager) designations. These are not “licenses,” per se, but do represent significant competency in managerial accounting and financial management skills. These certifications are sponsored by the Institute of Management Accountants. Download free ebooks at bookboon.com 10