决策管理会计.ppt

Outcome 2Marginal costing is a management accounting technique,which is used to assist management in the process of short-term decision-makingCost behaviorFixed costs:a cost which is unaffected by changes in output and which will be incurred even when output levels are zero.Apply marginal costing techniques to decisions about alternativesCost behaviorVariable costs:A cost that varies in direct proportion to the level of activity.Semi-variable costs:costs which neither vary in direct proportion to activity nor remain unchanged.These costs change for varying levels of activity but not in direct proportion.Cost BehaviourFixed-Cost BehaviourVariable-Cost Behaviour$Relevant RangeUnits Produced Units ProducedMixed-Cost BehaviourTotal CostsCostNumber of Units Produced Fixed Costs Variable CostsLinearity AssumptionTotal cost=Fixed cost+Total variable costClassify costs below as either variable(v)or fixed(f)cost.Commissions paid to sales person.Depreciation of HQs lunchroomfacilities at Mizuho Bank.Steering wheels installed in Nissan car.Salary of a supervisor overseeingproduction of printers at Cannon.Insurance premium on Panasonicfactory producing TV.Shipping canned tomatoes from a DelMonte plant to customers.Tomatoes processed and canned byKagome ketchup factory.Advertising by a real estate firm.Hamburger buns in McDonalds.ContributionContribution=Sales revenue-Variable costsContribution values are normally presented in a marginal cost statement.Sales 1000Less variable costs 600Equals contribution 400Less fixed costs 250Equals profit 150Contribution Marginal cost Statement Sales Revenue$400,000Less Variable Costs:Direct Material&labor$160,000Variable overhead 8,000168,000Contribution Margin$232,000Less Fixed Costs:Production overhead$50,000Fixed Mktg&Admin72,000122,000Net Income Before Taxes$110,000Multi-product marginal cost statementProduct AProduct BProduct CTotal Sales2005003001000Variable costs100300200600Contribution100200100400Fixed costs240Profit150Contribution earned per unitABCTotalNo.of units5000100004000Total revenue/costSales 2005003001000Variable costs100300200600Contribution100200100400Fixed costs250Profit150Unit revenue/costSelling price405075Variable cost203050Contribution202025Limiting factorsA limiting factor is any restriction of resources,which prevents/limits an organization in achieving their desired result.Examples of limiting factors may be:Shortage of skilled laborShortage of materialsLack of storage spaceLack of financeContribution per unit of limiting factorExample:the company is experiencing a shortage of skilled labor so that the company must decide which products to manufacture given the limited resources.Product A uses 1 skilled labor hour,B uses 2 skilled labor hours and C uses 5 skilled labor hours.ABCTotalNo.of units5000100004000Total revenue/costSales2005003001000Variable costs100300200600Contribution100200100400Fixed costs250Profit150Unit revenue/costSelling price405075Variable cost203050Contribution202025Skilled labor hours per unit125Contribution per hour20105ABCtotalRanking123Skilled labor hours per unit(a)12 5Demand(b)5000100004000Total hours required(ab)5000200002000045000Limited to 33000 hours(c)500020000(33000-25000)=800033000Contribution per hour(d)20105340,000Total contribution(cd)10000020000040000Fixed costs250,000Profit90,000Example-changes in prices and costsDetailed below is a summary of budget information for A company who manufacture and sell one product.In an effort to improve profitability you have been asked to consider two alternative courses of action:Reduce selling prices by 5%and increase sales volume by 10%.This proposal will incur additional marketing costs of 25,000.Change suppliers and reduce direct material costs by 10%.Its budget informationThe unit selling price is 20.please prepare a marginal cost statement for both alternatives,highlighting the impact on contribution and recommending which alternative should be accepted.sales1,500Direct material costs750Direct labor300Variable overhead150Fixed production overhead100Administration overhead40Selling&distribution overhead501390profit110The unit value:1,500,000/20=75,000unitsVariable unit costs:Direct material=750,000/75,000=10Direct labor=300,000/75,000=4Variable overhead=150,000/75,000=2Total variable cost=10+4+2=16Contribution=sales revenue-variable costs =20-16=4Alternative 1Reduce selling prices by 5%,and increase sale volume by 10%.This proposal will incur additional marketing costs of 25,000.Selling price will be 20 less 5%=19Sales volume will be 75,000 more 10%=82,500Unit valuesTotal No.of units82,500Total revenue/costSales 191,567,500Direct materials 10825,000Direct labor 4330,000Variable overhead 2165,000Total variable costs 161,320,000Contribution 3247,500Fixed production overhead100,000Administration overhead40,000Selling distribution overhead75,000Profit32,500Alternative 2 Change suppliers and reduce direct material costs by 10%.Direct material costs 10 less 10%=9Unit valuesTotal No.of units75,000Total revenue/costSales 201,500,000Direct materials 9675,000Direct labor 4300,000Variable overhead 2150,000Total variable costs 151,125,000Contribution 5375,000Fixed production overhead100,000Administration overhead40,000Selling distribution overhead50,000Profit185,000Example Make or Buy Gillespie PLC manufacture a range of products A,B and C.Budget details for product A are shown below.Demand 10,000 unitsPer unitSales price 30Direct material 10Variable overhead 4Fixed production overhead 50,000Administration overhead 40,000Gillespie PLC has identified an opportunity to outsource the product at a cost of 15/unit and seek your advice in making a decision.If the product is outsourced,the labor currently employed in manufacturing the product will be made redundant.Due to the temporary nature of the employees redundancy costs will not be incurred.Variable overhead costs will no longer be incurred.Other fixed overhead costs will remain,although administration overhead will increase by 50%.You are required to prepare budgeted marginal cost statements for both alternatives and recommed a course of action for Gillespie.Unit valuesTotal 000No.of units10,000Total revenue/costSales 30300Direct materials 10100Direct labor 4040Variable overhead 220Total variable costs 16160Contribution 14140Production overhead50Administration overhead40Profit50Unit valuesTotal 000No.of units10,000Total revenue/costSales 30300Direct materials 15150Direct labor Variable overhead Total variable costs 15150Contribution 15150Production overhead50Administration overhead60Profit40Qualitative factorsGoodwillCompetitor reactionLabor issuesSupply chainqualitySelf-Assessed QuestionP66-71Exercise:The summarised profit and loss statement for A company,based on a budgeted sellingprice per unit of 20 is as follows:000 000Sales 1,600Direct material 560Direct wages 320Variable overhead 80Fixed production overhead 200Fixed administration overhead 150Fixed selling overhead 100 1,410Profit 190At a recent board meeting the directors discussed various options in order to improveprofitability and these are as follows:1 Reduce selling price by 10%and also reduce sales volume to 60,000 units to take into account current economic conditions.2 Increase marketing costs by 25,000,with an increase in selling price of 20%,setting a profit margin of 10%.Required:Prepare marginal cost statements and a report to inform management of the consequences of the above alternatives.Your report should make reference to qualitative factors as well as quantitative factors.Solution:Megan plc Marginal cost statementsOriginal Per unit TotalUnits 80,000 000Sales 20 1,600Variable costsDirect material 7 560Direct wages 4 320Variable overhead 1 80Sales commission 0 0Total variable costs 12 960Contribution 8 640Fixed costsProduction overhead 200Administration overhead 150Selling overhead 100Total fixed costs 450Profit 190 Proposal 1 Proposal 2 Per unit Total Per unit TotalUnits 60,000 49,479 000 000Sales 18 1,080 24 1188Variable costsDirect material 7 420 7 346Direct wages 4 240 4 198Variable overhead 1 60 1 49Sales commission 0 0 0 0Total variable costs 12 720 12 594Contribution 6 360 12 594Fixed costsProduction overhead 200 200Administration overhead 150 150Selling overhead 100 125Total fixed costs 450 475Profit (90)119Appendix 1 WorkingsOriginal Sales/production units 1,600,000 20=80,000 unitsContribution/Sales(C/S)ratio is 8 20 100=40%Proposal 1 Revised selling price 18(20 90%)Contribution/Sales(C/S)Ratio is 6 18 100=33.3%Proposal 2 Revised selling price 24(20 120%)Revised fixed costs 475,000(450,000+25,000)Revised contribution 12(24 12)Contribution/Sales(C/S)ratio is 12 24 100=50%Profit=10%If contribution(c)=fixed cost(fc)+profit(p)as per the marginal cost statements above then c=fc+pTherefore fc=c pTherefore fc/sales rato=50%10%Therefore sales value=475,000 40%=1,187,500Therefore sales volume becomes 1,187,500 24=49,479 units.Report Megan plcProfitability Options(Proposal 1 and Proposal 2)Prepared by:Date:IntroductionYou asked me:to prepare marginal cost statements in respect of two options(proposal 1 and proposal 2)to inform you of the consequences of the implementation of the proposals to inform you of any qualitative factors to be taken into accountReportPlease refer to appendix 1 which contains the marginal cost statements.Proposal 1The selling price has been reduced by 10%to a price of 18 per unit and the sales volume has reduced by 25%to 60,000 to take account of current economic conditions this has resulted in a loss of 90,000.Contribution has fallen from 8 per unit to 6 per unit although fixed costs have remained the same.Therefore,the loss is due mainly to a loss in contribution.Proposal 2By increasing our sales price by 20%to a price of 24 per unit the contribution increases from 8 per unit to 12 per unit.Although there is additional expenditure of 25,000 on advertising,this is more than matched by our increase in sales revenue.By achieving the increase in selling price and setting a profit margin of 10%we only need to sell 49,479units to meet our target.RecommendationProposal 2 is the best option as it maximises profit,has the best C/S ratio and the highest contribution towards the fixed overheads.We need to be confident,however,that the market is willing to pay an extra 4 per unit on sales price.Proposal 1 cannot be recommended because profits are lower than the current situation.Qualitative factors market research issues,ie is it feasible to increase the selling price by 20%without making improvements to the product?marketing the product an increase in marketing costs should increase sales by increasing product awareness to the public the effect of competition quality,reliability,branding,pricing the fact that there is now spare production capacity compared to the current situation the effect on quality if variable costs are reduced此课件下载可自行编辑修改，供参考！感谢您的支持，我们努力做得更好！