标准化成本英文

Chapter6:StandardcostingandvarianceanalysisStandardCosting&VarianceAnalysis•ManagementAccountingControlSystembroadapproachtocontrolsystemsi.e.financialandnon-financialcontrolsthischapter:examinesdetailedfinancialcontrolsstd.cost&revenuecentresprofit&investmentcentres(thischp.)(chp5&6)StandardCosting&VarianceAnalysis•Financialcontrolsystemsoperatedinstd.costcentresstd.costingsystem(Varianceanalysis)enablesanydeviationsfrombudgetstobeanalysedindetailabletomeasureoutput&inputrequiredtoproduceeachunitofoutput,andhencecontrolcostmoreeffectivelyespeciallyformanufacturingactivities•Std.cost:predeterminedcostsonperunitbasis•Budgetedcost:predeterminedcostonentireactivityE.g..:Budgetedoutputs=10,000unitsStd.costis£3p/unitHence,budgetedcostis=£3x10,000units=£30,0001)StandardCostingSystem•Std.CostingSystemsuitableformanufacturingorganisations-becauseactivitiesarerepetitive&seriesofcommonoperations-becauseoutputcanbemeasuredwithinputbeingspecifiedtoproducep/unitoutput-appliedtoorganisationsthatproducelargeproductrangewithfewnumberofoperationsStandardCostingSystemAnoverviewofastandardcostingsystemStandardCostingSystem•Inestablishingvariances,comparisonismadebetweentotalstd.cost&totalactualcostperoperationcosthence,variancesareallocatedtoresponsibilitycentres(operations)andsomanagersareresponsibleforvariancesinownresponsibilitycentres.Effectivecontrol•Cannotcomparestd.productcostwithactualproductcostaseachproductmayinvolvecombinationofdifferentoperationssowhichmanagerisresponsibleforvarianceandhowcancontrolbeachievedeffectively?Oncevariancesareallocatedtoresponsibilitycentres,managersanalyseaccordingtoPrice&QuantityInvestigationisdoneastowhyvarianceoccurredsothatcorrectiveactionscanbetakenEg.:MaybeexcessiveusageofDM,andifsowhy?StandardCostingSystem:ExampleOperationofastandardcostingsystemComparisonismadebetweentotalstdcost&totalactualcosttoestablishvariancesaccordingtooperations/responsibilitycentres2)Std.CostDirectMaterialStd.DirectLabourStd.Man.O/HStd.Std.Qty(ofinput)xStd.Time/HoursStd.Price(ofinput)xStd.WageRateFlexibleO/HFixedO/HStd.HoursProduced-largelyxHourlyO/HRateindependentofchangesinstd.hoursproducedactivity=actualoutput(units)-remainsconstantxstd.hour/timep/unitproducedoverawiderangeofactivitiesinshortterm-std.hoursproducedisanoutputmeasure-flexiblebudgetallowancesarebasedonstd.hoursproduced3)PurposesofStdCostingSystem(a)Providespredictionoffuturecoststhatcanbeusedfordecisionmaking(b)Providesachallengingtargetforindividualstoachieveclearlydefinedtargetincreasesmotivationincreasesperformancethesechallengingtargetsarequantitativeandmotivateshigherperformancethannon-quantitativetargets(c)Assistinbudgetsettingandevaluatingmanagerialperformance(d)Actascontroldevicewhenstd.iscomparedtoactualvariancesarehighlighted,analysed,investigatedcorrectiveactionsaretakentoadjuststd.performance(e)Helpsmanagerstocontrolcostsatownresponsibilitycentres&tobemoreaccountableasvariancesareallocatedtoresponsibilitycentres4)VarianceAnalysisStdVariable/MarginalCostingSystemStdAbsorptionCostingSystemProfitVariance(diff.bet.Budgeted&actualprofit)Selling&Dist.costvar.Totalproductioncostvar.Totalsalesmarginvar.SalesmarginSalespricevar.margin.volumevar.TotalDMVar.TotalDLVar.TotalVariableFixedO/HExp.Var.O/HVar.MaterialPriceWage/LabourVariableVariableEfficiencyvar.ratevar.Exp.var.var.&&MaterialUsageLabourEfficiencyvar.var.(a)MaterialPriceVarianceRefertoE.g.17.1(pg426)(StdPrice–ActualPrice)xActualQuantityPurchased(SP–AP)×AQPMaterialA(£10-£11)x19000kg=£19000Adverse(A)MaterialB(£15-£14)x10100kg=£10100Favourable(F)Adverse:maybebecausegeneralpriceincrease;externalconditionsinmarket;failuretosourceforcorrectsuppliersFavourable:couldalsobesourceofsuppliesofinferiorquality–hencecheaper;generalpricedecrease;managetosecuregoodbutcheapsupplies(b)MaterialUsageVariance(StdQuantityforActualOutput–ActualQuantityforActualOutput)xStdPrice(SQ–AQ*)×SPMaterialA[(2kgx9000)-19000]x£10=£10000AMaterialB[(1kgx9000)-10100]x£15=£16500AAdverse:carelesshandlingofmaterialbyworker;wastage;purchaseofinferiormaterialandthereforewastage;changesinmethodsofproduction.Favourable:effective&efficientmaterialhandling;betterproductionmethodstodecreasewastageofmaterialsetc.*-Soevaluationisdoneonbudgetedfiguresbutactualsituation-Morecomparabletoactualresultsasconditionissame-Manageralsoevaluatedonmorevalid/realisticresults(c)TotalMaterialVarianceStdMaterialCostforActualOutput–ActualMaterialCostforActualOutputSMC-AMCMaterialA(£20x9000units)-£209000=£29000AMaterialB(£15x9000units)-£141,400=£6,400AorMaterialPriceVariance+MaterialUsageVarianceMaterialA=£19000A+£10000A=£29000AMaterialB=£10100F+£16500A=£6400Ad)Labour/WageRateVariance(StdRate–ActualRate)xActualHoursWorked(SR–AR)xAH=(£9-£9.60)x28500hrs=£17100Ae)LabourEfficiencyVariance(StdHoursforActualOutput–ActualHoursforActualOutput)xStdRate(SH–AH)xSR=[(3hrsx9000)–28500]x£9=13500AAdverse:poorproductionscheduling;changesinqualitycontrol;changesinproductionmethod/process;newequipment/tools;inferiormaterial;differentgradesoflabour;improperusageo