成本与管理会计亨格瑞第13版英文版CA07

2019/8/2311CHAPTER7FlexibleBudgets,Direct-CostVariances,andManagementControl2019/8/2322ControllingCostsMeasureActualCOMPAREActualVsStandardPredeterminedorSetStandardVariance2019/8/2333BasicConceptsVariance–differencebetweenanactualandanexpected(budgeted)amountPurposeofvarianceManagementbyexceptionPerformanceevaluationMotivatemanagersPromptstrategychange2019/8/2344BasicConceptsManagementbyException–thepracticeoffocusingattentiononareasnotoperatingasexpected(budgeted)2019/8/2355ManagementbyExceptionDirectMaterialManagersfocusonquantitiesandcoststhatexceedstandards,apracticeknownasmanagementbyexception.TypeofProductCostAmountDirectLaborStandard2019/8/2366StaticandFlexibleBudgetsStaticbudgetPreparedforonlyonelevelofactivity.Itisbasedonthelevelofoutputplannedatthestartofthebudgetperiod.Themasterbudgetisanexampleofastaticbudget.FlexiblebudgetDevelopedusingbudgetedrevenuesorcostamountsbasedonthelevelofoutputactuallyachievedinthebudgetperiod.Keydifferenceistheuseoftheactualoutputlevelintheflexiblebudget.2019/8/2377COSTCATEGORYVARIABLECOSTPERJACKETDIRECTMATERIALCOST$60DIRECTMANUFACTURINGLABORCOST16VARIABLEMANUFACTURINGOVERHEADCOSTS12TOTALVARIABLECOST$88BUDGETEDFIXEDCOSTSFORPRODUCTION(0-12000UNITS)$276000BUGETEDSELLINGPRICE$120/JACKETBUDGETEDPRODUCTIONANDSALES12000JACKETSACTUALPRODUCTIONANDSALES10000JACKETS2019/8/23882019/8/2399StaticBudgetAssumethatWebbmanufacturesandsellsjackets.Budgetedvariablecostsperjacketareasfollows:Directmaterialscost$60Directmanufacturinglabour16Variablemanufacturingoverhead12Totalvariablecosts$882019/8/231010StaticBudgetBudgetedsellingpriceis$120perjacket.Fixedmanufacturingcostsareexpectedtobe$276,000withinarelevantrangebetween0and12,000suits.Variableandfixedperiodcostsareignoredinthisexample.ThestaticbudgetforApril2008isbasedonselling12,000suits.Whatisthestatic-budgetoperatingprofit?2019/8/231111StaticBudgetRevenues(12,000×$120)$1,440,000LessExpenses:Variable(12,000×$88)1,056,000Fixed276,000Budgetedoperatingprofit$108,000AssumethatWebbproducedandsold10,000suitsat$125eachwithactualvariablecostsof$95.01persuitandfixedmanufacturingcostsof$285,000.2019/8/231212StaticBudgetWhatwastheactualoperatingprofit?Revenues(10,000×$125)$1,250,000LessExpenses:Variable(10,000×$95.01)950,100Fixed285,000Actualoperatingprofit$14,900Whatisthestatic-budgetvarianceofoperatingprofit?2019/8/2313132019/8/231414Static-BudgetVarianceAstatic-budgetvarianceis:(Actualresult-Budgetedamountinthestaticbudget).Afavourable(F)varianceisavariancethatincreasesoperatingprofitrelativetothebudgetedamount.Anunfavourable(U)varianceisavariancethatdecreasesoperatingprofitrelativetothebudgetedamount.2019/8/231515Static-BudgetVarianceLevel0analysiscomparesactualoperatingprofitwithbudgetedoperatingprofit.Thisisthehighestlevelofanalysis,asuper-macroviewofoperatingresults.TheLevel0analysisisnothingmorethanthedifferencebetweenactualandstatic-budgetoperatingincomeAnswers:“Howmuchwereweoff?”Actualoperatingprofit$14,900Budgetedoperatingprofit108,000Static-budgetvarianceofoperatingprofit$93,100U2019/8/231616Static-BudgetVarianceLevel1analysisprovidesmoredetailedinformationontheoperatingprofitstatic-budgetvariance.Level1givestheuseralittlemoreinformation:itshowswhichline-itemsledtothetotalLevel0variance.Level1answersthequestion:“Wherewereweoff?”2019/8/2317172019/8/231818Hmm!Comparingstaticbudgetswithactualcostsislikecomparingapplesandoranges.2019/8/231919ReasonsforvarianceInaccurateforecastingofoutputunitssoldOrWebb’sperformanceinmanufacturingandselling10000jackets2019/8/232020FlexibleBudgetsDevelopedusingbudgetedrevenuesorcostamountsbasedontheactualoutputinthebudgetperiod.Preparedattheendoftheperiod,onceactualcostsareknown3stepprocess2019/8/2321212019/8/232222StepsinDevelopingFlexibleBudgetsDeterminebudgetedsellingprice,budgetedvariablecostperunitandbudgetedfixedcost.Thebudgetedsellingpriceis$120,thebudgetedvariablecostis$88persuit,andthebudgetedfixedcostis$276,000.2019/8/232323StepsinDevelopingFlexibleBudgetsStep1:Determinetheactualoutput.InApril2008,10,000suitswereproducedandsold.Step2:Determinetheflexiblebudgetforrevenuesbasedonbudgetedsellingpriceandactualoutput.$120×10,000=$1,200,0002019/8/232424StepsinDevelopingFlexibleBudgetsStep3:Determinetheflexiblebudgetforcostsbasedonbudgetedvariablecostsperoutputunit,actualoutputandthebudgetedfixedcosts.Flexiblebudget:Variablecosts(10,000×$88)$880,000Fixedcosts276,000Totalcosts$1,156,0002019/8/232525VariancesLevel2analysisprovidesinformationonthetwocomponentsofthestatic-budgetvariance.1Flexible-budgetvariance2Sales-volumevariance2019/8/232626Level2Analysis,Illustrated2019/8/232727Level2Analysis,Illustrated2019/8/232828Sales-VolumeVarianceThesales-volumevarianceisthedifferencebetweenthestaticbudgetforthenumberofunitsexpectedtobesoldandtheflexiblebudgetforthenumberofunitsthatwereactuallysold.Theonlydifferencebetweenthestaticbudgetandtheflexiblebudgetistheoutputleveluponwhichthebudgetisbased.2019/8/232929Sales-VolumeVarianceSales-VolumeVar