《Management-Accounting》Chapter-2作业成本性态课件.ppt

1、3-1 3-2 1.Define cost behavior成本习性 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 the method of least squares.3-3 4.

2、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.3-4 A cost that stays the same as output changes is a fixed cost.3-5 Cutting machines are leased for$60,000 per year

3、 and have the capacity to produce up to 240,000 units a year.3-6 Lease of MachinesNumber of Units$60,0000N/A60,00060,000$1.0060,000120,0000.5060,000180,0000.3360,000240,0000.25Units CostTotal Costs$120,000$100,000$80,000$60,000$40,000$20,00060 120 180 2400Units Produced(000)F=$60,0003-7 Lease of Mac

4、hinesNumber of Units$60,0000N/A60,00060,000$1.0060,000120,0000.5060,000180,0000.3360,000240,0000.25Units CostCost per Unit$1.00$0.50$0.33$0.2560 120 180 2400Units Produced(000)3-8 A variable cost is a cost that,in total,varies in direct proportion to changes in output.3-9 As the cutting machines cut

5、 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).3-10 Cost of PowerNumber 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 180240Yv=.

6、20 x3-11 Cost of PowerNumber of Units$00$012,00060,0000.2024,000120,0000.2036,000180,0000.2048,000240,0000.20Units Cost60 120 180 240Units Produced(000)$0.40$0.30$0.20$0.100Cost per Unit3-12 A mixed cost is a cost that has both a fixed and a variable component.3-13 Sales representatives often are pa

7、id a salary plus a commission on sales.3-14 Inserts SoldVariable 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 UnitTotal Cost

8、s0Units Sold(000)$130,000$110,000$90,000$70,000$50,000$30,000 40 80 120 160 180 2003-15 Activity Cost Behavior ModelChanges in OutputChanges in Input Cost3-16 Flexible resources are resources acquired as used and needed.Materials and energy are examples.3-17 Committed resources are supplied in advan

9、ce of usage.Buying or leasing a building is an example of this form of advance resource acquisition.3-18 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 Behavior3-19 Cost Activity Output(units)$500400300200100 10 20

10、 30 40 50Step-Cost Behavior3-20 Normal Operating Range(Relevant Range)Step-Fixed CostsCost$150,000100,00050,000 2,500 5,000 7,500Activity Usage3-21 Three engineers hired at$50,000 eachEach engineer is capable of processing 2,500 change orders$90,000 was spent on supplies for the engineering activity

11、There were 6,000 orders processedThe company could process as many as 7,500 orders3-22 Available orders=Orders used+Orders unused 7,500 orders=6,000 orders+1,500 ordersFixed engineering rate=$150,000/7,500=$20 per change orderVariable engineering rate=$90,000/6,000=$15 per change order3-23 The relat

12、ionship between resources supplied and resources used is expressed by the following equation:Resources available=Resources used+Unused capacity3-24 Cost of orders supplied=Cost of orders used+Cost of unused orders =($20+$15)x 6,000+($20 x 1,500)=$240,000Equal to the$150,000 spent on engineers and th

13、e$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.3-25 The High-Low MethodThe Scatterplot MethodThe Method of Least SquaresVariable ComponentFixed Component3-26 The linearity assumption

14、 assumes that variable costs increase in direct proportion to the number of units produced(or activity units used).3-27 Y=a+bxTotal CostTotal Fixed CostVariable Cost per UnitNumber of Units3-28 Month Setup Costs Setup HoursJanuary$1,000100February 1,250200March 2,250300April 2,500400May 3,750500 The

15、 High-Low MethodStep 1:Solve for variable cost(b)3-29 Month Setup Costs Setup HoursJanuary$1,000100February 1,250200March 2,250300April 2,500400May 3,750500 b=High Cost Low CostHigh Units Low UnitsThe High-Low Method3-30 b=High Cost Low CostHigh Units Low Units Month Setup Costs Setup HoursJanuary$1

16、,000100February 1,250200March 2,250300April 2,500400May 3,750500 The High-Low Methodb=$3,750 Low Cost 500 Low Units3-31 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 Method3-32

17、b=$3,750$1,000 500 100 b=$6.875Step 2:Using either the high cost or low cost,solve for the total fixed cost(a).The High-Low Method3-33 Y =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+

18、($6.875 x Setup hours)The High-Low Method3-34 The Scatterplot Method3-35 ActivityCost0Activity Output*The Scatterplot MethodNonlinear Relationship3-36 ActivityCost0Activity Output*The Scatterplot MethodUpward Shift in Cost Relationship3-37 ActivityCost0Activity Output*The Scatterplot MethodPresence

19、of OutliersEstimated regression lineEstimated fixed cost3-38 MonthSetup Costs Setup HoursJan1,000 100Feb1,250 200Mar2,250 300Apr2,500 400May3,750 500Spreadsheet Data for Larson Company3-39 Regression Output for Larson CompanyRegression Output:Constant125Std.Err of Y Est299.304749934466R Squared0.944

20、300518134715No.of Observation5Degrees of Freedom3X Coefficient(s)6.75Std.Err of Coef.0.94648472433-40 The 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.3-41

21、Coefficient of CorrelationPositive CorrelationMachine HoursUtilities Costsr approaches+1Machine HoursUtilities Costs3-42 Coefficient of CorrelationNegative CorrelationHours of Safety TrainingIndustrial Accidentsr approaches-1Hours of Safety TrainingIndustrial Accidents3-43 Coefficient of Correlation

22、No CorrelationHair LengthAccounting Grader 0Hair LengthAccounting Grade3-44 TC=b0+(b1X1)+(b2X2)+.b0=the fixed cost or interceptb1=the variable rate for the first independent variableX1=the first independent variable b2=the variable rate for the second independent variableX2=the second independent va

23、riable Multiple Regression3-45 Multiple RegressionMonthMhrsSummerUtilities CostJan1,340 0$1,688Feb1,298 01,636Mar1,376 01,734April1,405 01,770May1,500 12,390June1,432 12,304July1,322 12,166August1,416 12,284Sept1,370 11,730Oct1,580 01,991Nov1,460 01,840Dec1,455 01,833Data for Phoenix Factory Utiliti

24、es Cost Regression3-46 Multiple RegressionConstant243.1114997159Std Err of Y Est55.5082829356447R Squared0.96717927255452No.of Observation12Degrees of Freedom9X Coefficient(s)1.0971575051946510.49073361447Std Err of Coef.0.21022633211559332.5489464532519Multiple Regression for Phoenix Factory Utilit

25、ies Cost3-47 The results gives rise to the following equation:Utilities cost=$243.11+$1.097(Machine hours)+($510.49 x Summer)R2=.967,or 96.7 percent of the variation in utilities cost is explained by the machine hours and summer variables.Multiple Regression3-48 Managerial judgment is critically important in determining cost behavior,and it is by far the most widely used method in practice.3-49