管理会计案例教材英文版(ppt 70)dymg.pptx

Standard Costs and Operating Performance Measures Chapter10 The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard CostsBenchmarks formeasuring performance.The expected levelof performance.Based on carefullypredetermined amounts.Used for planning labor,materialand overhead requirements.Standard Costs are The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard CostsDirectMaterialManagers focus on quantities and coststhat exceed standards,a practice known as management by exception.Type of Product CostAmountDirectLaborManufacturingOverheadStandard The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-Hill Accountants,engineers,personnel administrators,and production managers combine efforts to set standards based on experience and expectations.Setting Standard Costs The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillSetting Standard CostsShould we usepractical standardsor ideal standards?EngineerManagerialAccountant The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillSetting Standard CostsPractical standardsshould be set at levelsthat are currentlyattainable withreasonable andefficient effort.Productionmanager The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillSetting Standard CostsI agree.Ideal standards,that are based on perfection,areunattainable and discourage most employees.HumanResourcesManager The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillSetting Direct Material Standards QuantityStandardsUse product design specifications.PriceStandardsFinal,deliveredcost of materials,net of discounts.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillSetting Direct Labor Standards RateStandardsUse wage surveys andlabor contracts.TimeStandardsUse time and motion studies foreach labor operation.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillSetting Variable Overhead Standards RateStandardsThe rate is the variable portion of the predetermined overhead rate.ActivityStandardsThe activity is the base used to calculate the predetermined overhead.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard Cost Card Variable Production Cost A standard cost card for one unit of product might look like this:The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillAre standards the same as budgets?A standard is the expected cost for one unit.A budget is the expected cost for all units.Standards vs.Budgets The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard Cost VariancesProduct CostStandardThis variance is unfavorablebecause the actual costexceeds the standard cost.A standard cost variance is the amount by whichan actual cost differs from the standard cost.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard Cost VariancesI see that thereis an unfavorable variance.But why arevariances important to me?First,they point to causes ofproblems and directionsfor improvement.Second,they trigger investigations in departments having responsibility for incurring the costs.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillVariance Analysis CyclePrepare standard cost performance reportConduct next periods operationsAnalyze variancesIdentifyquestionsReceive explanationsTakecorrective actionsBegin The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard Cost VariancesPrice VarianceThe difference betweenthe actual price and thestandard priceStandard Cost VariancesQuantity VarianceThe difference betweenthe actual quantity andthe standard quantity The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillA General Model for Variance Analysis Actual Quantity Actual Quantity Standard Quantity Actual Price Standard Price Standard PricePrice Variance Quantity VarianceStandard price is the amount that should have been paid for the resources acquired.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillPrice Variance Quantity Variance Actual Quantity Actual Quantity Standard Quantity Actual Price Standard Price Standard PriceA General Model for Variance Analysis Standard quantity is the quantity allowed for the actual good output.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillA General Model for Variance Analysis AQ(AP-SP)SP(AQ-SQ)AQ=Actual Quantity SP=Standard Price AP=Actual Price SQ=Standard Quantity Price Variance Quantity Variance Actual Quantity Actual Quantity Standard Quantity Actual Price Standard Price Standard Price The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-HillStandard CostsLets use the general model to calculate standard cost variances,starting withdirect material.The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-Hill Hanson Inc.has the following direct material standard to manufacture one Zippy:1.5 pounds per Zippy at$4.00 per pound Last week 1,700 pounds of material were purchased and used to make 1,000 Zippies.The material cost a total of$6,630.Material Variances ExampleZippy The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-Hill What is the actual price per poundpaid for the material?a.$4.00 per pound.b.$4.10 per pound.c.$3.90 per pound.d.$6.63 per pound.Material VariancesZippy The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-Hill What is the actual price per poundpaid for the material?a.$4.00 per pound.b.$4.10 per pound.c.$3.90 per pound.d.$6.63 per pound.AP=$6,630 1,700 lbs.AP=$3.90 per lb.Material VariancesZippy The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-Hill Hansons material price variance(MPV)for the week was:a.$170 unfavorable.b.$170 favorable.c.$800 unfavorable.d.$800 favorable.Material VariancesZippy The McGraw-Hill Companies,Inc.,2000Irwin/McGraw-Hill Hansons material price variance(MPV)for the week was:a.$170 unfavorable.b.$170 favorable.c.$800 unfavorable.d.$800 favorable.MPV=AQ(AP-SP)MPV=1,700 lbs.($3.90-4.00)MPV=$170 FavorableMaterial VariancesZippy