管理会计Chap_02

2-15
Variable Cost
Your total texting bill is based on how many texts you send.
Total Texting Bill
Number of Texts Sent
2-16
Variable Cost Per Unit
The cost per text sent is constant at 5 cents per text message.
Expense
Balance Sheet
Income Statement
Income Sck Check

Which of the following costs would be considered a period rather than a product cost in a manufacturing company?
All executive, organizational, and clerical costs.
2-8
Learning Objective 2
Distinguish between product costs and period costs and give examples of each.
Fixed costs would increase in a step fashion at a rate of $30,000 for each additional 1,000 square feet.
2-23
Fixed Costs and the Relevant Range
Rent Cost in Thousands of Dollars 90
2-13
Learning Objective 3
Understand cost behavior patterns including variable costs, fixed costs, and mixed costs.
2-14
Cost Classifications for Predicting Cost Behavior
Discretionary
May be altered in the short-term by current managerial decisions
Examples
Depreciation on Buildings and Equipment and Real Estate Taxes
Examples
Monthly Cell Phone Contract Fee Number of Minutes Used Within Monthly Plan
2-19
Fixed Cost Per Unit
Within the monthly contract allotment, the average fixed cost per cell phone call made decreases as more calls are made.
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2-2
Learning Objective 1
Identify and give examples of each of the three basic manufacturing cost categories.
2-12
Classifications of Costs
Manufacturing costs are often classified as follows:
Direct Material Direct Labor Manufacturing Overhead
Prime Cost
Conversion Cost
2-24
Cost Classifications for Predicting Cost Behavior
Behavior of Cost (within the relevant range)
Cost Variable In Total Total variable cost Increase and decrease in proportion to changes in the activity level. Total fixed cost is not affected by changes in the activity level within the relevant range. Per Unit Variable cost per unit remains constant. Fixed cost per unit decreases as the activity level rises and increases as the activity level falls.
A. Manufacturing equipment depreciation. B. Property taxes on corporate headquarters. C. Direct materials costs. D. Electrical costs to light the production facility. E. Sales commissions.
2-9
Product Costs Versus Period Costs
Product costs include direct materials, direct labor, and manufacturing overhead.
Inventory Sale
Cost of Good Sold
Period costs include all selling costs and administrative costs.
60
Relevant
Range
30 0 0
The relevant range of activity for a fixed cost is the range of activity over which the graph of the cost is flat.
1,000 2,000 3,000 Rented Area (Square Feet)
2-6
Manufacturing Overhead
Manufacturing costs that cannot be easily traced directly to specific units produced.
Examples: Indirect materials and indirect labor
Monthly Cell Phone Contract Fee Number of Minutes Used Within Monthly Plan
2-20
Types of Fixed Costs
Committed
Long-term, cannot be significantly reduced in the short term.
2-3
Classifications of Manufacturing Costs
Direct Materials Direct Labor Manufacturing Overhead
The Product
2-4
Direct Materials
Raw materials that become an integral part of the product and that can be conveniently traced directly to it.
Advertising and Research and Development
2-21
The Linearity Assumption and the Relevant Range
Economist’s Curvilinear Cost Function Relevant Range
A straight line closely approximates a curvilinear variable cost line within the relevant range.
Cost Per Text Sent Number of Texts Sent
2-17
The Activity Base (Cost Driver)
Units produced
A measure of what causes the incurrence of a variable cost Miles driven Labor hours Machine hours
Total Cost
Accountant’s Straight-Line Approximation (constant unit variable cost) Activity
2-22
Fixed Costs and the Relevant Range
For example, assume office space is available at a rental rate of $30,000 per year in increments of 1,000 square feet.
Cost behavior refers to how a cost will react to changes in the level of activity. The most common classifications are:
▫ Variable costs. ▫ Fixed costs ▫ Mixed costs.