CMS-Lecture-7---Activity-Based-Costing-1PPT课件.ppt

Cost Management SystemsLecture 7Activity Based CostingABC成本法Cost Management Systems 22321 University of Technology,Sydney1.Cost Management Systems 22321University of Technology,SydneyLecture Outline Introduction Refining(完善)a Costing System Levels of Activity Analysis The Cost Hierarchy(成本等级)Activity Based Management Comparison of ABC to Traditional Costing Methods Other Issues with ABC2.Cost Management Systems 22321University of Technology,SydneyIntroductionCost systems need to be designed to provide relevant information for managerial decision making and control.There are three major considerations(要考虑的事)that need to be taken into account:Management should only implement(实施)a more elaborate(精心制作的)costing system if the benefits outweigh the costs of implementation and the future costs associated with operating the system.Systems should initially(开始)be tailored(调整使适应)to suite the underlying(基础的)characteristics,operations and external context(外部环境)of the organisation,not vice-versa(反之亦然).These cost systems,however,may subsequently(随后)provide information that facilitates(促进)process and operations re-engineering.Costing systems aim to report cost numbers that indicate the manner(方式)in which particular cost objects(such as products,services and customers)consume resources of the organisation.3.Cost Management Systems 22321University of Technology,SydneyIntroductionTraditionally,direct labour and direct material were the major costs in manufacturing organisations.However,in the contemporary Australian environment,manufacturing overheads are now a significant component of costs.Further,the majority of OH costs are not driven by conventional(依照传统的)volume drivers(Dean et al,1991).4.Cost Management Systems 22321University of Technology,SydneyRefining a Costing System“Peanut butter costing”describes a costing approach that uses broad明显的averaging to uniformly assign(分配)(spread（展开）or smooth out（缓和）)the cost of resources to cost objects,when the cost objects may in fact use these resources in a non-uniform way.This can result in:Product UNDER-costing(usually occurs with low volume products（低额产品）)Product OVER-costing(usually occurs with high volume products)“Decisions about pricing,marketing,product design and mix are among the most important ones managers make.None of them can be made effectively without accurate knowledge of product costs”(Cooper&Kaplan,1988,p97)To improve cost information accuracy,the costing system needs to be refined（完善）Refined cost systems provide better measurements by recognising（认出）the non-uniformity in the consumption of resources by cost objects(products,customers etc.)Three steps to refining a costing system:1.Direct cost tracing(classify as many costs as direct costs)2.Indirect cost pools(homogeneous cost pools（同类成本汇总）with common allocation base)3.Cost allocation bases(use cause and effect criterion（标准）for each activity cost pool)5.Cost Management Systems 22321University of Technology,SydneyLevels of Activity Analysis（作业分析）There are three levels of activity analysis(Gosselin,1997):Activity Analysis(AA)“Consists of identifying the activities and procedures carried out（拿出）to convert（转变）material,labour and other resources into outputs”Activity Cost Analysis(ACA)Involves identifying the costs of each activity and the factors that cause them to vary Activity Based Costing(ABC)Traces costs to cost objects by first identifying homogenous activity-based cost pools（成本汇总）,and second applying cost pools to cost objects by measures of the activities consumedResourcesActivitiesOutputsResource CostAssignment(Resource Drivers)ActivityDriversCostsActivity Cost PoolsCost Objects6.Cost Management Systems 22321University of Technology,SydneyThe Cost Hierarchy成本等级A cost hierarchy(Cooper,1990)is a categorisation分类 of costs into different cost pools on the basis 准则of different cost drivers or different degrees of difficulty in determining cause and effect relationships.Facility-Level CostsProduct Sustaining CostsBatch Related CostsUnit RelatedCostsUnit Margin单位毛利Batch Margin批毛利Product Margin生产毛利Plant Margin工厂毛利Corporate-Level CostsCorporateProfit公司利润What about other costs?1.Sales and Marketing Corporate Image Product Related2.General Administration Accounting,IT,HR,management,etc.3.Research and Development New products and processes Current products and processes7.Cost Management Systems 22321University of Technology,SydneyActivity Based ManagementABC systems can also be used for attention-directing（指标）,facilitating line促进 and product managers to focus their attention on critical cost areas.This promotes the identification of non-value adding activities,forming the basis for continuous improvement（不断改进）.This is called Activity Based Management(ABM).ABM highlights organisational processes and the interdependencies（互相依赖的）that exist（存在）between people and departments across the value chain.ResourcesACTIVITIESCostObjectsPerformanceMeasures业绩考核Root CauseCost Drivers作业成本因素Activity Management ViewActivity Costing View8.Cost Management Systems 22321Table adapted from Lawrence&Littman(2000)Comparison and Benefits效益of ABCABC CostingConventional CostingCost PoolsAccumulates costs into homogeneous activity cost pools that correspond to the major activities or process of the firm.Accumulates costs into plant-wide or departmental cost pools,where costs are heterogeneous and typically not caused by a single factor(cost driver)Allocation Base分摊基础Allocates costs to cost objects using activity cost driversAllocate costs to products using volume-based allocation basesHierarchy等级制度of CostsAllows for non-linear非线性的cost accumulation by recognising not all costs are caused by outputGenerally estimates all the costs of an organisation as being driven by the volume量 of product or serviceCost ObjectsFocuses on estimating the costs of a variety of objects(customers,processes etc.)Typically have a narrow狭窄的 focus on estimating the costs of a single cost object(i.e.a product)Decision SupportProvides more accurate information to support managerial decisions;language of activities easily understood by all managersLeads to over and under costing of cost objects,resulting in incorrect information;often difficult to interpret 说明 cost allocationsCost ControlAllows for prioritisation优化of cost-management efforts,focus on value-adding processesCost control is viewed as a departmental exercise rather than a cross-functional effortCostExpensive to implement and maintain 昂贵的去执行和保持Relatively inexpensive 相对便宜的9.Cost Management Systems 22321University of Technology,SydneyOther Issues问题 with ABCWhat is ABC used for in practice常规?(c.f.Swenson,1995)Strategic decisions(component sourcing部件采购,pricing定价,product mix产品结构,customer profitability客户收益率)Operating decisions经营决策(process improvement程序改进,product design)Performance measurement性能测定and evaluation业绩评价What types of organisations will benefit from ABC?Overhead costs are a significant portion of total costs Incurrence 引起of indirect costs is not related to production volume生产量 Product-related non-manufacturing costs increasing relative to manufacturing costs Organisation has a diverse多样的 product range,with variance差异 in the patterns 方式of usage of overhead between products Costs of making inaccurate decisions based on基于cost-data are high(such as in a highly competitive environment)Existing IT infrastructure基础设施can support increased data retrieval数据查询and reporting complexity 报告复杂性10.Cost Management Systems 22321University of Technology,SydneyOther Issues with ABCProblems with ABC:Conventional application传统应用 of ABC focuses on costs,not revenues Can de-emphasise不再强调the value-creation potential潜力of support services Suffers 容忍problems of conventional costing if facility设备 level costs are included in unit cost calculationsLimited adoption采用 in practice常规:Limited awareness限制的认识 of ABC or potential benefits 潜在的利益 Expensive to implement and maintain Barriers to innovation创新 adoption 采用 internal champion support(Brown et al,2005)Benefits may be obtained from early activity stages(AA and ACA)Organisation context 环境 does not require a complex cost system11.Cost Management Systems 22321University of Technology,SydneySteps to Applying Simple ABCSimple activity-based costing systems apply manufacturing overhead to products by using multiple overhead cost pools and multiple activity drivers.More complex ABC systems attempt to apply non-manufacturing costs to products(can include all costs throughout the value chain,including support activities).Steps to simple activity-based product costing:1.Identify activities involved in the production process2.Measure the costs of activities(assign costs to activities through resource drivers)3.Identify activity drivers4.Calculate activity rates(budgeted activity cost/budgeted activity driver)5.Apply costs to cost objects based on usage of the activity driver12.Cost Management Systems 22321University of Technology,SydneyLecture Demonstration ProblemCrema Coffee Ltd(CCL)is a processor加工 and distributer 分配of a variety of different coffee brands.The company buys coffee beans from around the world and roasts烤,blends混合 and packages them for resale.CCL currently has 15 different coffees that it offers to gourmet shops in one(1)kilogram bags.The major cost is direct materials,however there is a substantial amount of 大量的 factory overhead in the largely automated自动化的roasting and packing process.The company uses relatively little direct labour.Some of the coffees are very popular and sell in large volumes,while a few of the newer brands have very low volumes.CCL prices its coffee using a mark-up of 30%on full product cost,including allocated overheads.If prices for certain coffees are significantly higher than the current market price,the prices for these brands are lowered so that they are competitive.The company competes primarily on the quality of its products,but customers are price conscious as well(medium price-elasticity).Data for the 2009 annual budget includes factory OH of$3,000,000,which has been allocated in its current costing system on the basis of each products DL cost.The budgeted DL cost for 2009 was$600,000.Budgeted purchases and use of DM(mainly coffee beans)will total$6,000,000.The budgeted direct costs for one kilogram bags of two of CCLs products are:TastyPotentDirect Materials$4.20$3.20Direct Labour0.300.3013.Cost Management Systems 22321University of Technology,SydneyLecture Demonstration ProblemCCLs financial controller believes the current traditional product costing system may be providing misleading cost information.She developed the following analysis of 2009 budgeted factory OH costs:Data regarding the budgeted 2009 production of Tasty and Potent coffee follow.There will be no beginning or ending direct materials or WIP inventories for either of these coffees.ActivityActivity DriverBudgetedActivityBudgetedCost($)PurchasingPurchase Orders1,158579,000Material HandlingSetups1,800720,000Quality ControlBatches720144,000RoastingRoasting Hours96,100961,000BlendingBlending Hours33,600336,000PackagingPackaging Hours26,000260,000$3,000,000TastyPotentBudgeted sales100,000 kilograms2,000 kilogramsBatch size10,000 kilograms500 kilogramsSetups3 per batch3 per batchPurchase order size25,000 kilograms500 kilogramsRoasting time1 hour per 100 kilograms1 hour per 100 kilogramsBlending time30 minutes per 100 kilograms30 minutes per 100 kilogramsPackaging time6 minutes per 100 kilograms6 minutes per 100 kilograms14.Cost Management Systems 22321University of Technology,SydneyLecture Demonstration ProblemProduction Process (Activities)ActivityDriversCostObjectPurchaseOrdersCoffeeBagsSetupsBatchesRoastingHoursBlendingHoursPackagingHoursResources(Costs)DirectCostsAllocate overheads using budgeted ratesPurchasingMaterialHandlingQualityControlRoastingBlendingPackaging15.Cost Management Systems 22321University of Technology,SydneyLecture Demonstration ProblemRequired:1.Using CCLs current traditional costing system:a.Determine CCLs predetermined OH rate using DL cost as the single cost driverb.Determine the full product costs and selling prices of 1kg of Tasty and Potent coffees2.The company has decided to test ABC for costing purposes.Determine:a.The amount of each type of OH to be allocated to each productb.The full product costs and selling prices of 1kg of Tasty and Potent coffees3.What are the implications of the ABC system with respect to pricing and product mix strategies?How does ABC add to CCLs competitive advantage?Working:16.Cost Management Systems 22321University of Technology,SydneyLecture Demonstration ProblemWorking:17.Cost Management Systems 22321University of Technology,SydneyLecture Demonstration ProblemWorking:18.