ABC成本分析法要點EvolutionofABCConventionalcostingsystemsuseatwo-stageallocationprocess: 1.servicedepartmentcostsare allocated toproductiondepartments. 2.productiondepartmentoverheadcosts areallocatedtoproductsusinga volume-basedpredetermined overheadrate.2Productcostsdon’tmakesenseProblem:TheremaybenorelationshipbetweentheoverheadapplicationbaseandthewaythatdifferentproductscauseoverheadcostsTheresult:High-volumesimpleproductsareover-costedandover-pricedLow-volumecomplexproductsareunder-costedandunder-priced3PlantwideOverheadRatesCompanieshavetendedtousedirectlabourastheoverheadapplicationbase.Howeverdirectlabourisnowarelativelyminorpartoftotalmanufacturingcost.Manytasksthatusedtobedonebyhandarenowdonebyautomatedequipment.4Atwostageprocessisnecessarybecausecosts

areallocatedtodepartments

andthentoproducts.FinishingDepartmentShippingDepartmentPaintingDepartmentDepartmentalOverheadRates5Department1Department2Department3CostpoolsIndirectLaborIndirectMaterialsOtherOverheadStageOne:CostsassignedtopoolsDepartmentalOverheadRates6Department1Department2Department3CostpoolsStageOne:Costsassignedtopools

ProductsStageTwo:CostsappliedtoproductsDirectLabourHoursMachineHoursRawMaterialsCostDepartmentalAllocationBasesDepartmentalOverheadRatesIndirectLaborIndirectMaterialsOtherOverhead7CostDistortionscausedby2-stageallocationsThereisanolinkbetweenthecauseofsupportactivitycostsandthebasisforassigningthesecoststoproductsWhy? 1.Allocationsarebasedonunitorvolume relatedmeasures. 2.Differentproductsconsumedifferent amountsofsupportactivities.8QuestionableprofitmarginsTocompeteinthemarketplace,somecompanieshavehadtocutthepricesofhighvolumepopularitems.But Theyhavebeenabletoachievehighmark-upsonlowvolumespecialtyproducts.9ErosionofcompanyprofitsPricecutsproduceincreasedsalesinunitsbutdecreasedtotalrevenueHighmark-upsonspecialtyproductsdidn’toffsetthefallinprofitmarginsofhighvolumeproducts10CausesofproblemsIncreasedproductdiversitychangingcoststructuresuseofvolume-basedcostdriversHaveresultedin:

distortedproductcosts11Solution:ActivityBasedCostingACTIVITIESCONSUMERESOURCESPRODUCTSCONSUMEACTIVITIESActivitiesareusedtolink

resourcecoststoproducts12ActivityBasedCosting(ABC)Theobjectiveofactivity-basedcostingistounderstandthecausesofoverheadcostsandtoidentifytherealprofitabilityofproductsandcustomers.ABCisagoodsupplementtoourtraditionalcostsystemIagree!13Overheadratesmaybebasedonactivityatcapacity.ActivityBasedCosting(ABC)Activity-BasedCostingBothmanufacturingandnonmanufacturingcostsmaybeassignedtoproducts.Somemanufacturingcostsmaybeexcludedfromproductcosts.Thereareanumberofcostpools,eachof

whichisallocatedusingauniquemeasureofactivity.Allocationbasesoftendifferfromtraditionalcostingsystems.14HowCostsareTreatedUnderActivity-BasedCostingLevelofComplexityOverheadAllocation

PlantwideOverheadRateDepartmentalOverheadRatesActivityBasedCosting15Activity-basedcostingisawayofmeasuringboththecostofcostobjectsandtheperformanceofactivitiescanhelpsolveproblemssuchasdistortedproductcostspoorcostcontroltheformofABCadopteddependsontheproblemsthatneedtobeaddressed1617IdentifyingandDefiningActivitiesAnACTIVITYisapartoftheproductionprocessforwhichmanagementwantsaseparatereportingofcosts.Unit-LevelActivitiesBatch-LevelActivitiesProduct-sustainingActivitiesFacility-sustainingActivities18OutputUnit-LevelCosts...areresourcessacrificedonactivitiesperformedoneachindividualunitofproductorservicee.g.EnergyusedbymachinesMachinedepreciationorrepairs TheKeyQuestion:Doestheamountoftheactivitycostpoolincreasewiththenumberofunitsproduced?19Batch-LevelCosts...areresourcessacrificedonactivitiesthatarerelatedtoabatchofunitsratherthantoeachindividualunitofproductorservice.Set-upactivitycostsmaybedrivenbyset-uphours.Thiswilldependonthenumberset-upscarriedouti.e.onthenumberofbatchesproducedandthetimeeachset-uptakes.20Product-Sustaining...(orservice-sustaining)costsareresourcessacrificedonactivitiesundertakentosupportindividualproductsorservices. Designcostsmaybedrivenbythetimespentbyengineersdesigningtheproductitselfandplanninghowitwillbemade.21DifferentformsofABCSimpleapproach-includesmanufacturingoverheadonlyABCsystemforallindirectcosts-includesmanufacturingandnon-manufacturingcostsComprehensivesystem-includesallproduct-relatedcosts,exceptdirectmaterial22TheMechanicsofABCClassicBrassLtdmakesfinelymachinedbrassfittingsforavarietyofapplications.Forthiscompany,theultimatecostobjectsare:Products,Customerorders,andCustomers.Oneoverheadcost-shipping-canbetraceddirectlytocustomerorders.Thecompany’sactivitycostpoolsareshownonthenextslide.23Step1:IdentifyandDefineActivitiesandActivityCostPoolsAtClassicBrass,theABCteam,selectedthefollowingactivitycostpoolsandactivitymeasures:24Step1:IdentifyandDefineActivitiesandActivityCostPoolsCustomerOrders-assignedallcostsofresourcesthatareconsumedbytakingandprocessingcustomerorders.ProductDesigns-assignedallcostsofresourcesconsumedbydesigningproducts.OrderSize-assignedallcostsofresourcesconsumedasaconsequenceofthenumberofunitsproduced.CustomerRelations–assignedallcostsassociatedwithmaintainingrelationswithcustomers.Other–assignedalloverheadcoststhatarenotassociatedwiththeothercostpools.25Step2:WheneverPossible,DirectlyTraceOverheadCoststoActivitiesandCostObjects26Indirectfactorywages$500,000Percentconsumedbycustomerorders25%$125,000Step3:AssignCoststoActivityCostPools27Factoryequipmentdepreciation$300,000Percentconsumedbycustomerorders20%$60,000Step3:AssignCoststoActivityCostPools28Step3:AssignCoststoActivityCostPools29Step4:CalculateActivityRatesDirectMaterialsDirectLaborShippingCostsOverheadCostsTracedTracedTracedCostObjects:Products,CustomerOrders,Customers30Step4:CalculateActivityRatesDirectMaterialsDirectLaborShippingCostsOrderSizeCustomerOrdersProductDesignCustomerRelationsOtherOverheadCostsCostObjects:Products,CustomerOrders,CustomersFirst-StageAllocation31Step4:CalculateActivityRatesTheABCteamestimatesthatClassicBrasswillhavethefollowingtotalactivitiesforeachactivitycostpool...1,000customerorders,200newdesigns,20,000machine-hours100customers.Nowtheteamcancomputetheindividualactivityratesbydividingthetotalcostforeachactivitybythetotalactivitylevels32Step4:CalculateActivityRatesAfterthefirst-stageallocationiscomplete,computationofactivityratesforeachactivitycostpoolcanbedoneasfollows:÷÷÷÷33Step5:AssignCoststoCostObjectsLet’stakealookathowoursystemworksforjustonecustomer–WindwardYachts.StandardStanchions(nodesignrequired)1.400unitsorderedwith2separateorders.2.Eachstanchionrequired0.5machine-hours.3.Sellingpriceis$34each.4.Directmaterialstotal$2,110.5.Directlabortotals$1,850.6.Shippingcoststotal$180.CustomCompassHousing(requiresnewdesign)1.Oneorderduringtheyear.2.Eachhousingrequired4machine-hours.3.Sellingpriceis$650each.4.Directmaterialstotal$13.5.Directlabortotals$50.6.Shippingcoststotal$25.34Step5:AssignCoststoCostObjectsThecustomer-levelcostisassignedtocustomersdirectly;itisnotassignedtoproducts.35Step6:PrepareManagementReports36Step6:PrepareManagementReportsCustomerProfitabilityAnalysis37ProductMarginsTraditionalCostAccountingSystem(MH=machinehour)Predeterminedmanufacturingoverheadrate$1,000,00020,000MH=$50/MH=400unitsx0.5MH/unitx$50/MH=$10,00038DifferencesBetweenABCandTraditionalProductCostingABCwillordinarilyshiftoverheadcostsfromhigh-volumeproductsproducedinlargebatchestolow-volumeproductsproducedinsmallbatches.UnderABCbothmanufacturingandnonmanufacturingcostsmaybeassignedtoproducts.Organization-sustainingcostsandthecostsofidlecapacityarenotassignedtoproducts.39ABCbenefitswillbegreatestwhere...Overheadcostsareasignificantproportionoftotalcost,andalargepartofoverheadisnotdirectlyrelatedtoproductionvolumeThebusinesshasadiverseproductrange,andtheindividualproducts’useofsupportresourcesdiffersfromtheiruseofvolume-basedcostdrivers40ABCbenefitswillbegreatestwhere...Productionactivityinvolvesdiversebatchsizesandproductcomplexity.Therearelikelytobehigh‘costs’associatedwithmakinginappropriatedecisions,basedoninaccurateproductcosts.Thecostofdesigning,implementingandmaintaininganABCsystemisrelativelylowduetosophisticatedITsupport41ImpedimentstointroducingABCLackofawarenessofABCUncertaintyaboutthepotentialbenefitsfromABCFirmsunderstandtheneedforchangebutareconcernedabouttheextensiveresourcerequirementstoimplementABCResistancetochangeamongmanagersandemployeesReadingbyBoothandGiacobbe42Otheractivity-basedcostingissuesSourcesofvariationsintypesofABCincludewhetheractual(past)orbudgetedcostsareanalysedtheimplementationisaone-offprojectoranon-goingsystemcostobjects,otherthanproducts,areincluded43Otheractivity-basedcostingissuesImplicationsofexcesscapacityABCestimatesthecostofresourcesusedtoperformactivitiestoproduceandsellproducts,whichmaynotalwaysequalthecostofresourcessuppliedneedtoaccountforthecostsofunusedcapacitywhenbudgetedcostshavebeenusedtogenerateactivity-basedproductcosts44Otheractivity-basedcostingissuesBehaviouralissueschangecanbeperceivedasthreateningABCmayrequirechangesindatacollectedandcollectionandanalysisprocedures‘bottom-up’changemanagementmaygivesomedegreeofownershipofanychangescausedbyABCmanagementmustbeseenascommittedtothechangeprocess45Activity-basedcostinginserviceorganisationsABCcanbedifficulttoimplementinservicefirms,becausehighlevelsoffacilitycostscauseproblemswithcostingservicesindividualactivitiesaredifficulttoidentifybecausetheyarenon-repetitiveanon-repetitiveproductionenvironmentmakesitdifficulttoidentifyserviceoutputs46Activity-basedmanagement(ABM)Processofusinginformationfromactivity-basedcostingtoanalyseactivities,costdriversandperformancesothatcustomervalueandprofitabilityareimprovedCustomervaluethefeaturesofaproductwhichcustomersarewillingtopay47UsingABMtoreducecostsIdentifythemajoropportunitiesforcostreductionDeterminetherealcausesofthesecostsDevelopaprogramtoeliminatethecauses,and,therefore,thecostsIntroduceperformancemeasurestomonitortheeffectivenessofcostreductionefforts48IdentifyingthemajoropportunitiesforcostreductionValue-addedactivitiesessentialtothecustomer,orbusinessNon-value-addedactivitiescanbeeliminatedwithoutdetrimenttoeitherthecustomersorthebusiness49Value-AddedCostsAvalue-addedcostisacostthatcustomersperceiveasaddingvalue,orutility,toaproductorservicee.g.foracomputer:AdequatememoryPre-loadedsoftwareReliabilityEasy-to-usekeyboards50Non-value-addedcostsAnon-value-addedcostisacostthatcustomersdonotperceiveasaddingvalue,orutility,toaproductorservice.CostofexpeditingReworkRepairMaterialinspectionIdletime51ProductPricingandMixDecisionsABCgivesmanagementinsightintothecoststructuresformakingandsellingadiverserangeofproducts.Itprovidesmoreaccurateproductcostinformationandmoredetailedinformationoncostsofactivitiesandthedriversofthosecosts.52CostReductionandProcessImprovementDecisionsManufacturinganddistributionpersonneluseABCsystemstofocusoncostreductionefforts.Managerssetcost-reductiontargetsintermsofreducingthecostperunitofthecost-allocationbase.53DesignDecisionsManagementcanidentifyandevaluatenewdesignstoimproveperformancebyevaluatinghowproductandprocessdesignsaffectactivitiesandcosts.Companiescanworkwiththeircustomerstoevaluatethecostsandpricesofalternativedesignchoices.54Just-In-TimeProductionSystemsJust-in-time(JIT)productionsystemstakea“demandpull”approachinwhichgoodsareonlymanufacturedwhenneededtosatisfycustomerorders.Demandtriggerseachstepoftheproductionprocess,startingwithcustomerdemandforafinishedproductattheendoftheprocess,tothedemandfordirectmaterialsatthebeginningoftheprocess.55MajorFeaturesofaJITSystemThefivemajorfeaturesofaJITsy