第六章邊際成本及本量例分析ppt課件

1、1第六章 邊沿本錢及本量利分析 一、本錢性態(tài)： 變動本錢、固定本錢及混合本錢 The total variable cost will be changed in proportion to output, however, the cost per unit is constant;The total fixed cost will be unaffected when the output is changing, however, the cost of per unit is changing. For example, the cost per unit will be decrea

2、se as the output increase. (The fixed cost usually is irrelevant to the decision !)Prime cost per unit of output should be considered to be a variable cost. It including direct material, direct labour and direct expense. 第一節(jié) 邊沿本錢概述2第一節(jié) 邊沿本錢概述 從下例看以上三點(diǎn)： Direct material 3 kgs 4 per kg 12Direct labour

3、6 hrs 8 per hour 48Direct expense 10Prime cost 70Note: direct expense might be paid to another company for (say) polishing each product. The overheads of the business are all considered fixed, and amount to 18, 000 per month. Require calculating the cost for monthly outputs of 200 units, 300 units a

4、nd 350 units.3第一節(jié) 邊沿本錢概述Units 200 300 350 Direct material 2,400 3,600 4,200 Direct labour 9,600 14,400 16,800Direct expense 2,000 3,000 3,500Prime cost 14,000 21,000 24,500Fixed overheads 18,000 18,000 18,000Total cost 32,000 39,000 42,5004第一節(jié) 邊沿本錢概述Note: prime cost has been treated as a variable co

5、st. The total amount of prime cost has been increased in line with the increase in output.The figures can be summarised as followings:Units 200 300 350 Variable cost 14,000 21,000 24,500Fixed cost 18,000 18,000 18,000Total cost 32,000 39,000 42,5005第一節(jié) 邊沿本錢概述And cost per unit shown as:Units 200 300

6、350 Variable cost 70 70 70Fixed cost 90 60 51.43Total cost 160 130 121.43Marginal cost is the part of the cost of one unit of product or service which would be avoided if that unit were not produced, or which would increase if one extra unit were produced. It is the amount of extra cost that we incu

7、r by producing one more unit of output. For example:6二、相關(guān)概念Units 299 300 301Prime cost 20930 21000 21070Fixed o/h 18,000 18,000 18,000 Total cost 38,930 39,000 39,070.From above table, the cost of producing 1 extra unit is 39,070- 39,000 = 70Avoidable cost emphasizes that the cost already incurred.

8、E.g the depreciation and insurance are costs that cannot be avoided.Out-of-pocket cost emphasises that to do extra activity(kilometres), cash is needed from the pocket to pay for more it(fuel), no additional cash is needed for depreciation and insurance.In cost accounting the terms variable cost, ou

9、t-of-pocket cost, and marginal cost are often used interchangeably. (Not correct technically)7三、邊沿本錢法概述 Introduction to Marginal CostingContribution邊沿奉獻(xiàn): Sales value less variable cost of sales. It may be expressed as total contribution, contribution per unit or as a percentage of sales. The definit

10、ion of contribution refers to the variable cost of sales. 奉獻(xiàn)毛利=收入-變動本錢； 毛利=收入-銷售產(chǎn)品本錢，其中銷售本錢是制造本錢包括了固定的制造本錢 Definition of marginal costing: The accounting system in which variable cost are charged to cost units and fixed costs of the period are written off in full against the aggregate contribution.

11、Its specially value is in recognising cost behaviour, and hence assisting in decision making. 8三、邊沿本錢法概述Contrast between absorption costing and marginal costing:With absorption costing, all costs are absorbed into the cost unit. With the marginal costing, only variable costs are absorbed into the co

12、st unit. Under the marginal costing, the fixed cost will be deducted from contribution and then to get profit.Under the absorption costing, the stock will be valued at full production cost, inclusive of fixed overheads; however, they are only fixed production overheads.Under marginal costing, any un

13、sold stocks will be valued at variable production cost only. 9三、邊沿本錢法舉例 Example 1Company X starts production on 1 January Year 1. It makes one product and budgets to make and sell 1000 units during Year 1. The product will be sold direct to the public from its factory premises. (i.e there will be no

14、 distribution costs). A selling price of 200 per unit has been set. The prime costs have been forecast as :Material 40kg0.5 kg 20 Direct labour 20 hours5hour 100Overheads (all fixed)are budgeted 50,000. Calculate the profit using two approaches: Absorption costing approach and Marginal costing appro

15、ach.10三、邊沿本錢法 Example 1 (Solution) 1) Absorption approach:The absorption rate can be calculated as followings:The budgeted hours=1,000 units*20hours=2,0000hoursThe absorption rate= 50,000/20,000hours= 2.5 per hourDirect Material 40kg 0.5 kg 20 Direct labour 20 hours 5hour 100Prime cost 120Fixed over

16、head 20hours* 2.5 per hour 50Total cost 170 Sale 200Cost of sale 170Profit per unit 30Total profit 30,00011三、邊沿本錢法 Example 1 (Solution)2) Marginal costing approach Selling price 200Variable cost 120Contribution per unit 80 The aggregation contribution 1,000 units* 80 per unit= 80,000Less fixed costs

17、 50,000Profit 30,000Note: two approaches have both reported a profit of 30,000. This is because 1,000 units are to be made and 1,000 units are to be sold. There is no stock at the year end.12三、邊沿本錢法 Example 1 (Solution)Using the earlier example, although the firm plans to make 1,000 units in its fir

18、st year, it only expects to sell 900 units.1) Absorption costing: Sales 900 units* 200 180,000Cost of sales:Material 1,000* 20 20,000Direct labour 1,000* 100 100,000Fixed overhead 50,000Total cost 170,000Less stock 100units* 170 17,000 153,000Profit 27,00013三、邊沿本錢法 Example 1 (Solution) 2)Marginal co

19、sting: Sales 200*900 180,000Variable costs of sales Material 1,000units* 20 20,000 Direct labour 1,000* 100 100,000 120,000Less stock 100* 120 12,000 108,000Contribution 72,000Fixed cost 50,000Profit 22,000 The difference of 5,000 in profit is because of the difference of the stock valuations under

20、two approaches. with absorption approach, stock per unit value at 170, but under marginal costing , the stock per unit value at 12014三、邊沿本錢法 Example 1 (Solution)Using the earlier example, although the firm plans to make 1,000 units in its first year, it expects to sell 1040 units, provided that it h

21、as opening stock 100 units.Reported profits will depend on whether absorption or marginal principles are used. Which method reports the higher profits depends upon whether stocks are rising or falling.If stocks rising, I.e. produce more than sale, then absorption costing approach report a higher pro

22、fit; if stock failing, I.e. produce less than sale, means sale the previous stock, then the marginal costing method report a higher profit. 15四、邊沿本錢法在企業(yè)決策中的運(yùn)用marginal costing can be used to decide between in-house manufacture and; subcontracting轉(zhuǎn)包marginal costing can be used to assess the value of f

23、urther processing;marginal costing can be used, with other measures, to assist in setting prices for goods or services.Marginal costing is a useful technique when considering closures. It identifies the costs and revenue changes that result from the closure.16四、邊沿本錢法在企業(yè)決策中的運(yùn)用(一)、關(guān)于自制in-house manufac

24、ture還是轉(zhuǎn)包subcontracting的決策Product ( per unit) A B C D Material 10 8 4 7 Other variable costs 12 28 15 17 Fixed cost 19 26 14 17 Total cost 41 62 33 41 Selling price 50 70 40 45 Profit 9 8 7 4 Annual production and sales (units) 1,200 1,200 100 50 Question 1: should we be making and selling these prod

25、ucts?17四、邊沿本錢法在企業(yè)決策中的運(yùn)用 (一)關(guān)于自制in-house manufacture 還是轉(zhuǎn)包subcontracting的決策Answer to question 1:Yes, because each product makes a profit on an absorption basis, and each therefore makes a contribution.Question 2: In which case, should we let another firm make these products for us? Suppose a firm coul

26、d, and quotes per unit; Product A B C D Quoted price Per unit 40 63 18 26 18四、邊沿本錢法在企業(yè)決策中的運(yùn)用 (一)關(guān)于自制in-house manufacture 還是轉(zhuǎn)包subcontracting的決策Product A: total internal cost of manufacture 41. This is irrelevant, because fixed costs will not saved if they are all general fixed costs. Internal variabl

27、e cost of manufacture 22. Therefore, it is not worth paying 40 to save 22. So carry on with internal manufacture.Product B: Total internal cost of manufacture 62. This is irrelevant, because fixed costs will not saved if they are all general fixed costs. Internal variable cost of manufacture 36. The

28、refore, it is not worth paying 63 to save 36. So carry on with internal manufacture.Product C: Total internal cost of manufacture 33. This is irrelevant, because fixed costs will not be saved if they are all general fixed costs. Internal variable cost of manufacture 19. It is worth paying 18 to save

29、 19. Subcontracting Product C will minimize cost and will maximize profit. (danger: cut you out)19四、邊沿本錢法在企業(yè)決策中的運(yùn)用 (一) 關(guān)于自制in-house manufacture 還是轉(zhuǎn)包subcontracting的決策Product D: total internal cost of manufacture 41. This is irrelevant, because fixed costs will not saved if they are all general fixed

30、costs. Internal variable cost of manufacture 24. Therefore, it is not worth paying 26 to save 24. So carry on with internal manufacture.Question 3: Further information to Product D: when produce the Product D, then need to purchase a special gauge at cost of 250, to check each completed Product D. T

31、he gauge loses accuracy after being used to test 50 products, and a new gauge has to be purchase. The gauge cost is included in fixed costs. If an outside firm makes the product, it will have to purchase its own gauges. Does this change the decision?20四、邊沿本錢法在企業(yè)決策中的運(yùn)用 (一) 關(guān)于自制in-house manufacture 還是

32、轉(zhuǎn)包subcontracting的決策 Answer: Yes, this is a directly attributable fixed cost. Each product should bear 250/50=5 attributable fixed cost, however, if Product D is subcontracted, then it is worth paying 26 to save 24+ 5. In sum, on cost consideration alone, internal manufacture Product A and B should b

33、e continued, Product C and D should be subcontracted. 21四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用 二Decision on further processing?Andor Limited produces 18,000 litres of Product XP6 each month. XP6 is sold for 22 per litre. It is proposed to further process XP6 to make XP6(superior). Further processing will

34、 cost 6.5 per litre of input, and there will be additional fixed costs of 15,000 each month.10% of input material will be lost in further processing. This will have no value. XP6 (superior) is expected to sell for 34 per litre. Should XP6 be further processed into XP6 (superior)?22 四、邊沿本錢法在企業(yè)決策中的運(yùn)用T

35、he present monthly revenue is 18,000* 22= 396,000;The monthly revenue for XP6(superior) =18,000*90%*34= 550,800Extra revenue = 154,800The extra cost is: Variable 18,000* 6.5 + fixed 15,000= 132,000;Therefore, it is worth producing XP6 (superior).Note: Fixed cost of 15,000 is relevant to the decision

36、. 二 Decision on further processing?23三Price setting The firm is a 2-product firm in Year 7, by adding SR6.The budget is : SR5 SR6 TotalUnits of production and sale 8,000 2,000 10,000Manufacturing hours 12,000 1,000 13,000 Total ()Direct material cost 10,000 2,000 12,000Variable convention costs 9,00

37、0 1,000 10,000Fixed conversion costs have increased to 16,250.If the firm wants to make 5,750 profit in Year 7, what will the price to be set ?四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用24三 Price setting The product costs per unit: SR5() SR6() Material cost 1.25 1.00 Variable conversion cost 1.125 0.50 Variab

38、le cost 2.375 1.50 Fixed cost (1.25 per hour) 1.875 0.625 Total cost 4.25 2.125The budgeted total costs are: Direct material cost 12,000 Variable conversion cost 10,000Fixed conversion cost 16,250Total cost 38,250Profit required 5,750Sales revenue required 44,000 四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用25三

39、Price setting 1st Method: Mark-up: The total profit of 5,750 as a % of total cost of 38,250 is 15.033%. The required selling price will be: SR5() SR6()Total cost per unit 4.25 2.125Add mark up 15.033% 0.639 0.319Target selling price 4.889 2.444 In the real commercial world, the selling price are lar

40、gely decided by competition and other factors. 四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用26三Price setting2nd method: Variable cost+Contribution=Selling PriceThe required contribution is5,750 + 16,250=22,000. As the planned hours are 13,000, so the required contribution per hours is 22,000/13,000= 1.692. This

41、 would give the required selling prices of: SR5 SR6 Material cost per unit 1.250 1.00Variable conversion cost per unit 1.125 0.500Variable cost per unit 2.375 1.500Contribution at 1.692 per hour 2.538 0.846Selling price 4.913 2.346四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用27三 Price settingContribution 2.538

42、0.846Hours to make 1.50 0.50Contribution per hour 1.692 1.692 The 3rd method: Added value+Direct material=Selling PriceThe required added value is 44,000 less material of 12,000= 32,000. And an added value per hour is 32,000/13,000= 2.462 per hour. This would give required selling price of : SR5 ()

43、SR6()Direct materials 1.250 1.000Added value 2.462 per hour 3.693 1.231Target selling price 4.943 2.231四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用28四Closure decisionThe management of Company X are considering the closure of Branch 10. Annual sales of this branch are 860,000. An average gross margin of 60% is

44、earned. 345, 000 is paid for staff wages and salaries. In addition, sales staff are paid a commission of 2% of sales turnover. Staff with salaries totaling 75,000 would be absorbed in other branches. The remaining staff would be made redundant. This would involve one-off redundancy costs of 36,700.

45、An amount of 80,000 is apportioned to branch 10 from Head Office costs, which would be unaffected in total by the closure of Branch 10. Other expenses amount to 55,000, and these would be saved by the closure of Branch 10. It is estimated that sales of 340,000 normally made at Branch 10 would be pic

46、ked up at other branches. The rest of the sales would be lost. How should this closure proposal be evaluated?Saving or costing is from the firm point of view, not the branch along.四、邊沿本錢法在企業(yè)決策中的運(yùn)用29 四Closure decisionLost of sales: Lost sales from Branch 10 860,000 Sales picked up at other branches (

47、340,000) Net lost sales 520,000 Gross margin 60% 312,000Cost Savings: Staff wages and salaries 345,000 Less wages and salaries not saved (75,000) Other expense 55,000 Commission 2% on 520,000 10,400 335,400Net saving from closure of Branch 10 23,400四、邊沿本錢法Marginal Costing)在企業(yè)決策中的運(yùn)用30四、邊沿本錢法Marginal

48、Costing)在企業(yè)決策中的運(yùn)用One-off redundancy payment 36,700Net loss from closure 13,300Note: The Branch 10 should not be closed, however, it reflects a point which is included in many questions of this type: the redundancy payment is only paid once. In all future years the company will be 23,400 (335,400 - 3

49、12,000) better off if Branches 10 is closed. (Net saving of 23,400) It has been assumed that staff transferred to other branches are additional staff. If they are being placed in jobs for which people would otherwise have to be recruited, then the 75,000 should not be deducted. From firms point of v

50、iew, 75,000 is not saved.四Closure decision31第二節(jié) 邊沿奉獻(xiàn)Contribution: Sales value less variable cost of sales. It may be expressed as total contribution, contribution per unit or as a percentage of sales. The definition of contribution refers to the variable cost of sales.Contribution in relation to a s

51、carce resource can be used to allocate that resource most profitably.32第二節(jié) 邊沿奉獻(xiàn)的計算舉例Example 1: At Year 3, the company X plans to make 900 units of product X1 and 400 units product X2, the prime costs for each products as followings: X1 X2Material 40kg* 0.5kg 20 100kg* 0.5kg 50Direct labour 20hrs 5hr

52、 100 5hrs 5hr 25Prime cost 120 75 Selling price 200 Fixed cost 50,000 33第二節(jié) 邊沿奉獻(xiàn)的計算舉例Using the marginal costing method: X1 X2Direct material 20 50Direct labour 100 25Variable cost 120 75Selling price 200 Contribution per unit 80 60Unit 900 400Total contribution 72,000 24,000 96,000Fixed costs 50,000

53、Profit 46,00034Decision making: Scarce Resource (Example 2)Using data from above example , for Year 3, 900 units of X1 and 400 units of X2 will be made. If there is only 30,000 of material will be available for the whole year. What is the best profit can be made?(Key point: the contribution per of m

54、aterial should be calculated) X1 X2Contribution per unit 80 60Material used per unit 20 50Contribution per of Material 4 1.2第二節(jié) 邊沿奉獻(xiàn)在企業(yè)決策中的運(yùn)用35第二節(jié) 邊沿奉獻(xiàn)在企業(yè)決策中的運(yùn)用From the calculation, the X1 give the best contribution in relation to the scarce material used. It is preferred to allocated scare labour t

55、o X1 first:As X1 need 20 material per unit, therefore, 900 units needs 900* 20=18,000; this leaves 30, 000- 18, 000= 12, 000 for product X2. This will make 12, 000/ 50=240 units of X2The best (or optimal) profit is therefore:(900* 80)+(240* 60)- 50, 000= 36, 400Decision making: Scarce Resource (Exam

56、ple 2)36第二節(jié) 邊沿奉獻(xiàn)在企業(yè)決策中的運(yùn)用If the direct labour hours will be limited to 16, 000 hours. What is the best profit can be made?Solution: X1 X2Contribution per unit 80 60Direct labour hours per unit 20 5Contribution per direct labour hour 4 12Decision making: Scarce Resource (Example 3)37Decision making:

57、Scarce Resource (Example 2)From the calculation, we can see the X2 give the best contribution in relation to the scarce labour used. It is preferred to allocated scare labour to X2 first:X2 need 5 hours per unitsTherefore, 400 units needs400*5=2,000 hoursThis leaves 16,000-2,000=14,000 hours for pro

58、duct X1.This will make 14,000/20 hours=700 units of X1The best (or optimal) profit is therefore:(700* 80+400* 60)-50,000= 30, 000第二節(jié) 邊沿奉獻(xiàn)在企業(yè)決策中的運(yùn)用38第三節(jié) 保本點(diǎn)(盈虧臨界點(diǎn))的計算-公式Break-Even Calculations: Break-even is where neither a profit nor a loss is made. The aggregate contribution must just be enough to

59、cover the fixed cost.Formula:Fixed costs/ Contribution per unit= units to break-evenFixed costs/CS ration= sales value to break-even39第三節(jié) 保本點(diǎn)的計算-舉例Break-Even CalculationsCompany X starts production on 1 January Year 1. It makes one product and budgets to make and sell 1000 units during Year 1. The p

60、roduct will be sold direct to the public from its factory premises. (i.e there will be no distribution costs). A selling price of 200 per unit has been set. The prime costs have been forecast as :Material 40kg 0.5 kg 20 Direct labour 20 hours 5hour 100Overheads (all fixed)are budgeted 5000040第三節(jié) 保本點(diǎn)