1. McGraw-Hill /Irwin Copyright © The McGraw-Hill Companies, Inc. All rights reserved. Supplementary Slides - Activity Based Costing Systems Design: Activity Based Costing 系统设计：作业成本法

2. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objective 1 Understand the basic approach in activity-based costing and how it differs from conventional costing.

3. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. When cost systems （ 成本核算系统） were developed in the 1800s, the emphasis was on simplicity （简单化） because: 1.Cost and activity data had to be collected by hand and all calculations were done with paper and pencil. 成本和作业数据是靠手工收集的， 所有的计算由纸笔完成 2. Most companies produced a limited variety of similar products, so there was little difference in the overhead costs consumed by each product. 大多数的企业生产有限的类似产品，因此每个产品消耗 的费用成本差别不大。 When cost systems （ 成本核算系统） were developed in the 1800s, the emphasis was on simplicity （简单化） because: 1.Cost and activity data had to be collected by hand and all calculations were done with paper and pencil. 成本和作业数据是靠手工收集的， 所有的计算由纸笔完成 2. Most companies produced a limited variety of similar products, so there was little difference in the overhead costs consumed by each product. 大多数的企业生产有限的类似产品，因此每个产品消耗 的费用成本差别不大。 Assigning Overhead Costs to Products 把制造费用分配给产品

4. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Plantwide Overhead Rate Plantwide Overhead Rate A single overhead rate used throughout an entire factory. 全厂范围内的制造费用分配率在整个工厂范围只使用一个制造费用分配率 全厂范围内的制造费用分配率在整个工厂范围只使用一个制造费用分配率 Direct labor has often been used as the allocation base for overhead （人 们通常以直接人工作为制造费用分配的基础） because: 1. Direct labor information was already being recorded. 直接人工的信息早已被记录 2. Direct labor was a large component of product costs. 直接人工是产品成本中的大部分 3.Managers believed direct labor and overhead costs were highly correlated. 经理人认为直接人工和费用成本高度相关 Direct labor has often been used as the allocation base for overhead （人 们通常以直接人工作为制造费用分配的基础） because: 1. Direct labor information was already being recorded. 直接人工的信息早已被记录 2. Direct labor was a large component of product costs. 直接人工是产品成本中的大部分 3.Managers believed direct labor and overhead costs were highly correlated. 经理人认为直接人工和费用成本高度相关

5. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Today, direct labor may no longer be a satisfactory base for allocation of overhead. 现在, 直接人工已不适合作为制造费用分配的基础 1.Most companies sell a large variety of products that consume differing amounts of overhead. 大多数公司销售多种消耗不同费用的产品。 2.As a percentage of total costs, direct labor has been shrinking and overhead has been increasing. Many of the new overhead costs may not be correlated with direct labor. 在总成本的比例中，直接人工缩水，费用上升。 许多新的费用成本 可能与直接人工不相关。 3.Technology advancements have reduced the cost and complexity of gathering diverse sources of data. 科技进步降低了成本和收集不同来源数据的复杂性。 Today, direct labor may no longer be a satisfactory base for allocation of overhead. 现在, 直接人工已不适合作为制造费用分配的基础 1.Most companies sell a large variety of products that consume differing amounts of overhead. 大多数公司销售多种消耗不同费用的产品。 2.As a percentage of total costs, direct labor has been shrinking and overhead has been increasing. Many of the new overhead costs may not be correlated with direct labor. 在总成本的比例中，直接人工缩水，费用上升。 许多新的费用成本 可能与直接人工不相关。 3.Technology advancements have reduced the cost and complexity of gathering diverse sources of data. 科技进步降低了成本和收集不同来源数据的复杂性。 Plantwide Overhead Rate A plantwide overhead allocation system may not be optimal for many companies in today’s business environment.

6. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. A number of allocation bases are used for assigning costs to products. 作业成本法在分配制造费用时使用了很多的分配基础. Activity-Based Costing (ABC)

7. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. CostCost Activity-Based Costing (ABC) Consumption of Resources ActivitiesActivities Cost Objects (e.g., products and customers) Cost Objects (e.g., products and customers)

8. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Activity An event that causes the consumption of overhead resources 导致费用资源消耗的事件 Setting up machines 设定机器 Examples of Activities Admitting hospital patients 收治病人 Opening a bank account 开立银行账户 Billing customers 给顾客帐单 Activity-Based Costing (ABC)

9. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Activity Cost Pool 作业成本库 A “cost bucket” in which costs related to a particular activity are accumulated Activity Measure 作业度量 Expresses how much of the activity is carried out and is used as the allocation base for applying overhead costs Activity-Based Costing (ABC) Activity Rate 作业分配率 A predetermined overhead rate for each activity cost pool.

10. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Activity-Based Costing (ABC) For each activity in isolation, this system works exactly like the job-order costing system. 对每个独立的作业，系统像批次订单成本系统那样运作 A predetermined overhead rate is computed for each activity and then applied to jobs and products based on the amount of activity consumed by the job or product. 对每个作业， POHR 被计算出来并根据批次或 产品消耗的作业量被运用到批次和产品中 A predetermined overhead rate is computed for each activity and then applied to jobs and products based on the amount of activity consumed by the job or product. 对每个作业， POHR 被计算出来并根据批次或 产品消耗的作业量被运用到批次和产品中

11. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Designing an Activity-Based Costing System The challenge is to select a reasonably small number of activitiesthat explain the bulk of the variation in overhead costs 挑战是如何选择合理的小规模作业， 来解释费用成本的大 量变动. The challenge is to select a reasonably small number of activitiesthat explain the bulk of the variation in overhead costs 挑战是如何选择合理的小规模作业， 来解释费用成本的大 量变动. Activities are usually chosen by interviewing a broad range of managers to find out what activities they think consume most of the organization’s resources. 与经理人面谈，找出他们认为最消耗企业资源的活动

12. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Related activities are frequently combined to reduce the amount of detail and record-keeping costs. 相关的作业通常被合并来减少细节和簿记成本 An activity dictionary defines each of the activities that will be included in the activity-based costing system and how the activities will be measured. 作业词典定义了作业成本系统中的每个作业以及如何衡量作业 An activity dictionary defines each of the activities that will be included in the activity-based costing system and how the activities will be measured. 作业词典定义了作业成本系统中的每个作业以及如何衡量作业 For example, several activities may be involved in handling and moving raw materials, but these may be combined into a single activity entitled material handling. Designing an Activity-Based Costing System

13. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Graphic Example of Activity-Based Costing Labor Related Pool Machine Related Pool Setup Pool Production Order Pool General Factory Pool Parts Admin. Pool First-Stage Cost Assignment Various Manufacturing Overhead Costs

14. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Unit-Level Activity 单位水平作业 Batch-Level Activity 批次水平作业 Facility-Level Activity 设施水平作业 Product-Level Activity 产品水平作业 Graphic Example of Activity-Based Costing Labor Related Pool Machine Related Pool Setup Pool Production Order Pool General Factory Pool Parts Admin. Pool First-Stage Cost Assignment Various Manufacturing Overhead Costs Products $/DLH$/MH$/Setup$/Order$/MH $/Part Type Second-Stage Allocations

15. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Activity-Based Costing Comtek Sound, Inc.  Comtek Sound, Inc. makes two products: CD players and DVD players.  The company has been losing bids to supply CD players, its main product, to lower priced competitors.  The company has been winning all bids to supply DVD players, its secondary product.  Comtek Sound, Inc. makes two products: CD players and DVD players.  The company has been losing bids to supply CD players, its main product, to lower priced competitors.  The company has been winning all bids to supply DVD players, its secondary product.

16. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Activity-Based Costing Comtek Sound, Inc.  For the current year, Comtek has budgeted sales of 50,000 DVD units and 200,000 CD units.  Comtek’s traditional cost system applies manufacturing overhead to products based on direct labor hours.  Both products require two direct labor-hours to complete, for a total of 500,000 direct labor hours.  For the current year, Comtek has budgeted sales of 50,000 DVD units and 200,000 CD units.  Comtek’s traditional cost system applies manufacturing overhead to products based on direct labor hours.  Both products require two direct labor-hours to complete, for a total of 500,000 direct labor hours.

17. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Activity-Based Costing Comtek Sound, Inc.  Unit costs for materials and labor are:

18. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Total manufacturing overhead costs for the current year are estimated to be $10,000,000. The company develops the following overhead rate based upon labor-hours: Predetermined overhead rate = $20 per DLH= $10,000,000 500,000 DLHs Direct Labor-Hours as a Base

19. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Direct Labor-Hours as a Base Since each product requires two hours of direct labor, $40 of overhead is assigned to each product.

20. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objective 2 Compute activity rates for an activity-based costing system.

21. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. The ABC project team at Comtek has developed the following basic information. Computing Activity Rates

22. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. We can calculate the following activity rates: Using the new activity rates, let’s assign overhead to the two products based upon expected activity. Computing Activity Rates

23. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objective 3 Compute product costs using activity-based costing.

24. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Computing Overhead Cost per Unit DVD Units

25. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Computing Overhead Cost per Unit CD Units

26. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Note that the unit product cost of a CD unit decreased from $110 to $95.55........ while the unit cost of a DVD unit increased from $150 to $207.80. Comparing the Two Approaches

27. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objective 4 Contrast the product costs computed under activity- based costing and conventional costing methods.

28. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Comparing the Two Approaches The ABC system assigns $14.45 less overhead than the traditional system to each CD player.

29. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Comparing the Two Approaches The ABC system assigns $57.80 more overhead than the traditional system to each DVD player.

30. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. When a company implements activity-based costing, overhead cost often shifts from high-volume to low-volume products with a higher unit product cost resulting for the low-volume products. 当企业实施作业成本时，费用成本通常从高产量的产品向低产量的产品倾斜，导 致低产量产品拥有高单位成本 When a company implements activity-based costing, overhead cost often shifts from high-volume to low-volume products with a higher unit product cost resulting for the low-volume products. 当企业实施作业成本时，费用成本通常从高产量的产品向低产量的产品倾斜，导 致低产量产品拥有高单位成本 Low-volume product Shifting of Overhead Cost

31. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. High-volume product Shifting of Overhead Cost The traditional system assigns the same amount of all overhead costs to each CD or DVD player ($40 per unit).

32. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Activity-Based Management Focuses on managing activities to eliminate waste and reduce delays and defects. 着眼于管理作业来消除浪费和减少延误和残次 着眼于管理作业来消除浪费和减少延误和残次 Targeting Process Improvements An ABC system can help identify areas where the company can benefit from improving its current processes. 帮助发掘通过改善流程有益于企业的领域 An ABC system can help identify areas where the company can benefit from improving its current processes. 帮助发掘通过改善流程有益于企业的领域

33. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Benefits of Activity-Based Costing ABC improves the accuracy of product costing （提高产品成 本核算） by: Increasing the number of cost pools used to accumulate overhead costs. 增加累计费用成本的成本库的数量 Using activity cost pools that are more homogeneous than departmental cost pools. 使用比部门成本库更加趋同的成本库 Assigning overhead costs using activity measures that cause those costs, rather than relying solely on direct labor hours. 使用作业度量分 配费用成本，而不是仅仅依靠直接人工时 ABC improves the accuracy of product costing （提高产品成 本核算） by: Increasing the number of cost pools used to accumulate overhead costs. 增加累计费用成本的成本库的数量 Using activity cost pools that are more homogeneous than departmental cost pools. 使用比部门成本库更加趋同的成本库 Assigning overhead costs using activity measures that cause those costs, rather than relying solely on direct labor hours. 使用作业度量分 配费用成本，而不是仅仅依靠直接人工时 Activity-based costing also highlights activities that could benefit most from process improvement efforts, such as Six Sigma. 强调了通过改善流程，如六西格玛，最受益的作业。 Activity-based costing also highlights activities that could benefit most from process improvement efforts, such as Six Sigma. 强调了通过改善流程，如六西格玛，最受益的作业。

34. McGraw-Hill /Irwin Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Costs of implementing an ABC system may outweigh the benefits （可能会得不偿失）. However, the benefits are more likely to be worth the costs （更有可能物有所值） when: 1.Products differ substantially in volume, batch size, and in activities required. 产品在数量，批次大小和作业要求上很不相同 2.Conditions have changed substantially since the existing cost system was established. 自从现有成本核算系统建立以来，情况发生了极大的变 化 3.Overhead costs are high and increasing and no one seems to understand why. 费用成本很高而且还在增长，没有人知道为什么 4.Management does not trust the existing cost system and it ignores data from it when making decisions. 管理者不信任现有的成本核算系统，并在决策的时候忽略从中而来的数 据 Costs of implementing an ABC system may outweigh the benefits （可能会得不偿失）. However, the benefits are more likely to be worth the costs （更有可能物有所值） when: 1.Products differ substantially in volume, batch size, and in activities required. 产品在数量，批次大小和作业要求上很不相同 2.Conditions have changed substantially since the existing cost system was established. 自从现有成本核算系统建立以来，情况发生了极大的变 化 3.Overhead costs are high and increasing and no one seems to understand why. 费用成本很高而且还在增长，没有人知道为什么 4.Management does not trust the existing cost system and it ignores data from it when making decisions. 管理者不信任现有的成本核算系统，并在决策的时候忽略从中而来的数 据 Limitations Activity-Based Costing 局限 性