Variable Costing 变动成本法

1. CHAPTER3 Variable Costing 变动成本法

2. Objectives 1.Discuss the differences between variable and absorption costing. 2. Explain how variable costing is useful in evaluating the performance of a manager. 3. Prepare a segmented income statement based on a variable-costing approach, and demonstrate how to use this format with activity-based costing to assess customer profitability.

3. Objectives 4.Show how variable costing can be used in planning and control.

4. 一、Variable costing assigns only variable manufacturing costs to the product. Direct materials Direct labor Variable overhead

5. Absorption costing“吸收成本法” (又称完全成本法) assigns all manufacturing costs to the product; this adds fixed overhead to the formula. Direct materials Direct labor Variable overhead Fixed overhead

6. Ex.1 Inventory Valuation存货定价 • Units in beginning inventory(BI期初存货) --- • Units produced 生产 10,000 • Units sold 已售($300 each) 8,000 • Normal(正常) volume 10,000 Variable cost per unit: Direct materials $ 50 Direct labor 100 Variable overhead 50 Variable selling and administrative 10 Fixed costs: Fixed overhead $250,000 Fixed selling and administrative 100,000

7. $250,000 10,000 Unit Cost Variable Absorption costing costing • Direct materials $ 50 $ 50 • Direct labor 100 100 • Variable overhead 50 50 • Fixed overhead 25

8. Unit Cost Variable Absorption costing costing Direct materials $ 50 $ 50 Direct labor 100 100 Variable overhead 50 50 Fixed overhead 25 Total $200 $225

9. Variable-Costing Income Statement 变动成本法下的损益 Sales $2,400,000 Less variable expenses: Variable cost of goods sold $1,600,000 Variable selling and admin. 80,000 1,680,000 Contribution margin $ 720,000 Less fixed expenses: Fixed overhead $ 250,000 Fixed selling and admin. 150,000 350,000 Net income $ 370,000

10. Absorption-Costing Income Statement 吸收成本法下的损益 Sales $2,400,000 Less: Cost of goods sold销货成本 1,800,000 Gross margin $ 600,000 Less: Selling and administrative exp. 180,000 Net income $ 420,000 Variable costing net income $370,000 (Why?) ∵ Fixed portion of ending inventory(EI,期末存货) (2,000 units x $25) 50,000 Absorption costing net income $420,000

11. ∴ Production, Sales, andIncome Relationships: If Then Production > Sales Absorption NI > Variable NI Production < Sales Absorption NI < Variable NI Production = Sales Absorption NI = Variable NI

12. Example 2 Data for Belnip, Inc., for years 2004, 2005, and 2006 follows: Variable cost pr unit: Direct materials $4.00 Direct labor 1.50 Variable overhead (estimated and actual) 0.50 Variable selling and administrative 0.25 Estimated fixed overhead was $150,000 each year. Normal production was 150,000 units and the sales price was $10. Fixed selling and administrative expenses were $50,000.

13. Variable-Costing Income Statement 2004 2005 2006 Sales Less variable expenses: Variable cost of goods sold Variable selling and admin. Contribution margin Less fixed expenses: Fixed overhead Fixed selling and admin. Net income $1,500.00 -900.00 -37.50 $ 562.50 -150.00 -50 $ 362.50 $1,000 -600 -25 $ 375 -150 -50 $ 175 $2,000 -1,200 -50 $ 750 -150 -50 $ 550 BI $ 300 Cost of GM 900 GAFS $1,200 Less: EI 0 VCof GS $1,200 BI $ 0 Cost of GM 900 GAFS $900 Less: EI 300 VCof GS $600 BI $ 0 Cost of GM 900 GAFS $900 Less: EI 0 VC of GS $900

14. BI $ 350 Cost of GM 1,050 GAFS $1,400 Less: EI 0 CoGS $1,400 BI $ 0 Cost of GM 1,050 GAFS $1,050 Less: EI 0 CoGS $1,050 BI $ 0 Cost of GM 1,050 GAFS $1,050 Less: EI 350 CoGS $ 700 Absorption-Costing Income Statement 2004 2005 2006 Sales Less: Cost of goods sold Gross margin Less: Selling and admin. exp. Net income $1,500.00 -1,050.00 $ 450.00 87.50 $ 362.50 $1,000 700 $ 300 75 $ 225 $2,000 1,400 $ 600 100 $ 500

15. Absorption costing income – Variable costing income = @ Fixed overhead x (Units produced – Units sold) 2006 $500,000 – $550,000 = $1 x (150,000 – 200,000)

16. If income performance is expected to reflect managerial performance, then managers have the right to expect-- • As sales revenue increases from one period to the next, all other things being equal, income should increase. • As sales revenue decreases from one period to the next, all other things being equal, income should decrease. • As sales revenue remains unchanged from one period to the next, all other things being equal, income should remain unchanged.

17. 二、Segment Reporting Example 3: Elcom, Inc. Income Statement, 2004 Absorption-Costing Basis Stereos Video Recorders Total Sales $400,000 $290,000 $690,000 Less: CoGS 350,000 300,000 650,000 Gross margin $ 50,000 $ -10,000 $ 40,000 Less: Selling & administrative exp. 30,000 20,000 50,000 Net income or loss $ 20,000 $ -30,000 $ -10,000

18. Elcom, Inc. Income Statement, 2004 Variable-Costing Basis Stereos Video Recorders Total Sales $400,000 $290,000 $690,000 Less variable expenses: Variable C of GS -300,000 -200,000 -500,000 Variable S & A -5,000 -10,000 -15,000 Contribution margin $ 95,000 $ 80,000 $175,000 Less direct fixed exp.: Direct fixed overhead -30,000 -20,000 -50,000 Direct S & A -10,000 -5,000 -15,000 Segment margin $ 55,000 $ 55,000 $110,000 Less common fixed exp.: Common fixed OH -100,000 Common S & A -20,000 Net income or loss $-10,000 (更便于考核)

19. 三、Customer Profitability 解企业对于不同客户群之获利率，利用 “数据发掘”之方式来进行顾客关系管理。倘若企业对于不同客户群之获利程度无法清楚掌握，就无法妥善规划未来企业的行销及营运方向行销现象策略。 许多企业往往认为客户永远是对的，因此无论客户的要求为何，均应努力达成。此种论点在某些层面而言应属正确；然从实务层面来看，企业针对不同的客户需求而改善自身营运流程与成本，由于不同的客户群对商品与服务需求程度之不同，企业所采行之定价与获利程度亦有所不同。 倘若部门流程间未尽完善，往往导致部份获利程度较低之客户有「过度服务」，而获利程度较高之客户反而产生「服务不足」之情形。因此，了解不同顾客群对于企业获利之贡献程度，可以使企业类似站在一个置高点上，对顾客关系管理可得到一个较为清晰之全貌，作为调整营运模式与行销策略之依据，再从既有之基础上，提高企业对于客户群之获利程度，增加企业之营收

20. 三、Customer Profitability Ex. 4: Barton, Inc. Profit for Chain Stores Sales $4,725,000 Less: Discounts 393,750 Net sales $4,331,250 Less: Cost of goods sold 2,520,000 Gross profit $1,811,250 Less: Shelf space -112,500 Shipping -157,500 EDI -100,000 Profit $1,441,250

21. Barton, Inc. Profit for Independent Toy Stores Sales $2,625,000 Less: Cost of goods sold 1,400,000 Gross profit $1,225,000 Less: Commissions -131,250 Special packaging -35,000 Profit $1,058,750

22. Barton, Inc. Profit for Fairs Sales $150,000 Less: Cost of goods sold 80,000 Gross profit $ 70,000 Less: Fair expense -75,000 Design time -2,100 Setup -1,000 Loss $ -8,100

23. Key Terms 主要术语 p.475 Absorption costing Segment margin variable costing Fixed expenses Exercises课后习题 p.476 Calculating the absorption costing & variable costing Chapter Fifteen The End