《Management-Accounting》Chapter-2作業(yè)成本性態(tài)課件

1、Activity Cost Behavior作業(yè) 成本性態(tài)CHAPTER 21.Define cost behavior成本習性 for fixed, variable, and mixed costs.2.Explain the role of the resource usage model in understanding cost behavior.3.Separate mixed costs into their fixed and variable components using the high-low method, the scatter plot method, and

2、the method of least squares.Objectivescontinued4.Evaluate the reliability of a cost equation.5.Discuss the role of multiple regression in assessing cost behavior.6.Describe the use of managerial judgment in determining cost behavior.ObjectivesFixed CostsA cost that stays the same as output changes i

3、s a fixed cost.Cutting machines are leased for $60,000 per year and have the capacity to produce up to 240,000 units a year.Fixed CostsLease of MachinesNumber of Units$60,0000N/A60,00060,000$1.0060,000120,0000.5060,000180,0000.3360,000240,0000.25Units CostFixed CostsTotal Fixed Cost GraphTotal Costs

4、$120,000$100,000$80,000$60,000$40,000 $20,000601201802400Units Produced (000)F = $60,000Lease of MachinesNumber of Units$60,0000N/A60,00060,000$1.0060,000120,0000.5060,000180,0000.3360,000240,0000.25Units CostFixed CostsUnit Fixed Cost GraphCost per Unit$1.00$0.50$0.33$0.25601201802400Units Produced

5、 (000)Variable CostA variable cost is a cost that, in total, varies in direct proportion to changes in output.As the cutting machines cut each unit, they use 0.1 kilowatt-hour at $2.00 per kilowatt hour. Thus, the cost of each unit is $0.20 ($2 x 0.1). Variable CostTotal Variable Cost GraphCost of P

6、owerNumber of Units$ 00$ 012,00060,0000.2024,000120,0000.2036,000180,0000.2048,000240,0000.20Units CostTotal Costs0Units Produced (000)$48,000$36,000$24,000 $12,00060 120 180240Variable CostYv = .20 xCost of PowerNumber of Units$ 00$ 012,00060,0000.2024,000120,0000.2036,000180,0000.2048,000240,0000.

7、20Units CostVariable CostUnit Variable Cost Graph60120180240Units Produced (000)$0.40$0.30$0.20$0.100Cost per UnitA mixed cost is a cost that has both a fixed and a variable component.Mixed CostsMixed CostsSales representatives often are paid a salary plus a commission on sales.Mixed CostsInserts So

8、ldVariable Cost of Selling40,000$ 20,000$30,000$ 50,000$1.2580,00040,00030,00070,0000.86120,00060,00030,00090,0000.75160,00080,00030,000110,0000.69200,000100,00030,000130,0000.65Total Selling CostFixed Cost of SellingSelling Cost per UnitMixed Cost BehaviorTotal Costs0Units Sold (000)$130,000$110,00

9、0$90,000$70,000$50,000 $30,000 40 80 120 160 180 200Activity Cost Behavior ModelInput:MaterialsEnergyLaborCapitalActivitiesActivity OutputCost BehaviorChanges in OutputChanges in Input CostFlexible ResourcesFlexible resources are resources acquired as used and needed. Materials and energy are exampl

10、es.Committed ResourcesCommitted resources are supplied in advance of usage. Buying or leasing a building is an example of this form of advance resource acquisition. A step cost displays a constant level of cost for a range of output and then jumps to a higher level of cost at some point.Step-Cost Be

11、haviorCost Activity Output (units)$500400300200100 10 20 30 40 50Step-Cost BehaviorNormal Operating Range (Relevant Range)Step-Fixed CostsCost$150,000100,00050,000 2,500 5,000 7,500Activity UsageThree engineers hired at $50,000 eachEach engineer is capable of processing 2,500 change orders$90,000 wa

12、s spent on supplies for the engineering activityThere were 6,000 orders processedThe company could process as many as 7,500 ordersStep-Cost BehaviorAvailable orders = Orders used + Orders unused 7,500 orders = 6,000 orders + 1,500 ordersFixed engineering rate = $150,000/7,500= $20 per change orderVa

13、riable engineering rate = $90,000/6,000= $15 per change orderStep-Cost BehaviorThe relationship between resources supplied and resources used is expressed by the following equation:Resources available = Resources used + Unused capacityStep-Cost BehaviorCost of orders supplied = Cost of orders used +

14、 Cost of unused orders = ($20 + $15) x 6,000 + ($20 x 1,500)= $240,000Equal to the $150,000 spent on engineers and the $90,000 spent on supplies.The $30,000 of excess engineering capacity means that a new product could be introduced without increasing current spending on engineering.Step-Cost Behavi

15、orThe High-Low MethodThe Scatterplot MethodThe Method of Least SquaresMethods for Separating Mixed CostsVariable ComponentFixed ComponentThe linearity assumption assumes that variable costs increase in direct proportion to the number of units produced (or activity units used).Methods for Separating

16、Mixed CostsY = a + bxTotal CostTotal Fixed CostVariable Cost per UnitNumber of Units Month Setup Costs Setup HoursJanuary $1,000100February 1,250200March 2,250300April 2,500400May 3,750500 The High-Low MethodStep 1: Solve for variable cost (b) Month Setup Costs Setup HoursJanuary $1,000100February 1

17、,250200March 2,250300April 2,500400May 3,750500 b = High Cost Low CostHigh Units Low UnitsThe High-Low Methodb = High Cost Low CostHigh Units Low Units Month Setup Costs Setup HoursJanuary $1,000100February 1,250200March 2,250300April 2,500400May 3,750500 The High-Low Methodb = $3,750 Low Cost 500 L

18、ow Units Month Setup Costs Setup HoursJanuary $1,000100February 1,250200March 2,250300April 2,500400May 3,750500 b = $3,750 Low Cost 500 Low Unitsb = $3,750 $1,000 500 100The High-Low Methodb = $3,750 $1,000 500 100 b = $6.875Step 2: Using either the high cost or low cost, solve for the total fixed

19、cost (a).The High-Low MethodY = a + b (x) $3,750 = a + $6.875(500) $312.50 = aHigh EndY = a + b (x) $1,000 = a + $6.875(100) $312.50 = aLow EndThe cost formula using the high-low method is: Total cost = $312.50 + ($6.875 x Setup hours)The High-Low MethodThe Scatterplot MethodActivityCost0Activity Ou

20、tput*The Scatterplot MethodNonlinear RelationshipActivityCost0Activity Output*The Scatterplot MethodUpward Shift in Cost RelationshipActivityCost0Activity Output*The Scatterplot MethodPresence of OutliersEstimated regression lineEstimated fixed costThe Method of Least SquaresSpreadsheet Data for Lar

21、son CompanyThe Method of Least SquaresRegression Output for Larson CompanyThe Method of Least SquaresThe results give rise to the following equation:Setup costs = $125 + ($6.75 x Setup hours)R2 = .944, or 94.4 percent of the variation in setup costs is explained by the number of setup hours variable

22、.Coefficient of CorrelationPositive CorrelationMachine HoursUtilities Costsr approaches +1Machine HoursUtilities CostsCoefficient of CorrelationNegative CorrelationHours of Safety TrainingIndustrial Accidentsr approaches -1Hours of Safety TrainingIndustrial AccidentsCoefficient of CorrelationNo CorrelationHair LengthAccounting Grader 0Hair LengthAccounting GradeTC = b0 + ( b1X1) + (b2X2) + . . . b0 = the fixed cost or interceptb1 = the variable rate