Ch3

cost
100000
0
1000
2000 volume
2.2 Step costs（梯级成本）
A step cost is a cost which is fixed in nature but only within certain levels of activity.
cost
300000 200000 100000
Example:
A manufacturing company has four types of cost （identified as T1, T2 , T3 and T4）. The total cost for each type at two different production levels is: 125units 180 units T1 1,000 1,260 T2 1,750 2,520 T3 2,475 2,826 T4 3,225 4,644
cost
volume
Topic2.Cost Behavior Patterns(成本行为模式)
2.1 Fixed Costs(固定成本) A fixed cost is a cost which tends to be unaffected by increases or decreases in the volume of output.
A semi-variable/semi-fixed/mixed cost is a cost which contains both fixed and variable components and so is partly affected by changes in the level of activity.
cost
3000
2000
1000
0
10
20
3000
volume
Variable cost特例1：bonus 奖金
cost
50 25 0
50
100
150
volume
Variable cost特例2：non-linear(非线性)
Variable cost特例2: non-linear(非线性)
2.4 mixed costs（混合成本）
Year 2002 2003 Output(units) Total cost(＄) 90 000 60 000 170 000 140 000
Step2 calculate four datas
at high level at low level at high level at low level
cost maximum charge
fixed charge
volume
B Total annual direct material cost where the supplier charges a constant amount per unit which then reduces to a lower amount per unit after a certain level of purchases.
= 8
= 14
180 units 1,260 2,520 2,826 4,644
1260 180 2520 180 = 7
1000 125 1750 125
= 14
2475 125 3225 125
= 19.8
2826
180
4644 180
= 15.7
= 25.8
= 25.8
Example:
• A break-even chart for a company is depicted as follows:
• Which two cost types would be classified as being semi-variable? A T1 and T3 B T1 and T4 C T2 and T3 D T2 and T4
A
T1 T2 T3 T4
125units 1,000 1,750 2,475 3,225
• Which one of the following statements is consistent with the above chart? A Both selling price per unit and variable cost per unit are constant. B Selling price per unit is constant but variable cost per unit increases for sales over 4,000 units. C Variable cost per unit is constant but the selling price per unit increases for sales over 4,000 units. D Selling price per unit increases for sales over 4,000 units and there is an increase in the total fixed costs at A 4,000 units.
=170 000 =140 000 =90 000
Total cost
Total units
=60 000
Step3 variable cost per unit
Total cost at high level Total cost
at low level Total units at low level
140 000 60 000
Total units at high level
170 000 90 000
=
=
1＄
Step4 total cost
Variable cost =1 ＄×85 000 =85 000
Total cost Fixed cost= at high level Variable cost at high level 90 000
cost
volume
D Annual total cost of telephone services where the supplier makes a fixed charge and then a constant unit rate for calls up to a certain level. This rate then reduces for all calls above this level.
Calculate the total cost that should be expected in 2005 if output is 85 000 units?
Step1: Select the period with the highest and lowest activity level:
Example:
When total purchases of raw material exceed 30,000 units in any one period then all units purchased, including the initial 30,000, are invoiced at a lower cost per unit. Which of the following graphs is consistent with the behaviour of the total materials cost in a period?
0
1000
ห้องสมุดไป่ตู้
2000
3000
volume
2.3 Variable cost(变动成本)
A variable cost is a cost which tends to vary directly with the volume of output. The variable cost per unit is the same amount for each unit produced.
2.5 other patterns
cost
Maximum cost
0
volume
cost
Minimum charge
0
volume
Example:
The following diagram represents the behaviour of one element of cost:
• Which one of the following descriptions is consistent with the above diagram? A Annual total cost of factory power where the supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption which is subject to a maximum annual charge.
cost lower charge
volume
C Total annual direct material cost where the supplier charges a constant amount per unit but when purchases exceed a certain level a lower amount per unit applies to all purchases in the year.
Topic3 High-low method
DG Co has recorded the following total costs