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Variable Variable CostingCosting

变动成本法变动成本法

CHAPTERCHAPTER

33

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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.

ObjectivesObjectivesObjectivesObjectives

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

ObjectivesObjectivesObjectivesObjectives

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Direct materials

Direct labor

Variable overhead

一、 Variable costing assigns only variable manufacturing costs to the product.

一、 Variable costing assigns only variable manufacturing costs to the product.

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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.

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

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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

Ex.1 Inventory Valuation存货定价

Variable cost per unit:

Direct materials

$ 50Direct labor

100Variable overhead

50Variable selling and administrative

10

Fixed costs:

Fixed overhead

$250,000Fixed selling and administrative

100,000

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Direct materials $ 50 $ 50

Direct labor 100 100

Variable overhead 50 50

Fixed overhead 25

Unit CostUnit CostUnit CostUnit Cost

Variable Absorption costing costing

$250,00010,000

$250,00010,000

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Direct materials $ 50 $ 50

Direct labor 100 100

Variable overhead 50 50

Fixed overhead 25

Total $200 $225

Unit CostUnit CostUnit CostUnit Cost

Variable Absorption costing costing

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Variable-Costing Income StatementVariable-Costing Income Statement变动成本法下的损益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

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Absorption-Costing Income StatementAbsorption-Costing Income Statement吸收成本法下的损益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) 50,000Absorption costing net income $420,000

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∴ ∴ Production, Sales, andProduction, Sales, andIncome Relationships:Income Relationships: ∴ ∴ Production, Sales, andProduction, Sales, and

Income Relationships:Income Relationships:

Production > Sales Absorption NI > Variable NI

Production < Sales Absorption NI < Variable NI

Production = Sales Absorption NI = Variable NI

If Then

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Example 2

Data for Belnip, Inc., for years 2004, 2005, and 2006 follows:

Variable cost pr unit:Direct materials

$4.00Direct labor

1.50Variable overhead (estimated and

actual)0.50

Variable selling and administrative0.25

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.

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.

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Variable-Costing Income StatementVariable-Costing Income StatementVariable-Costing Income StatementVariable-Costing Income Statement

2004 2005 20062004 2005 2006SalesLess variable expenses:

Variable cost of goods soldVariable selling and admin.

Contribution marginLess fixed expenses:

Fixed overheadFixed 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

BIBI $ 0$ 0Cost of GMCost of GM 900900GAFSGAFS $900$900Less: EILess: EI 0 0VC of GSVC of GS $900$900

BIBI $ 0$ 0Cost of GMCost of GM 900900GAFSGAFS $900$900Less: EILess: EI 300 300VCof GSVCof GS $600$600

BIBI $ 300$ 300Cost of GMCost of GM 900 900GAFSGAFS $1,200$1,200Less: EILess: EI 0 0VCof GSVCof GS $1,200$1,200

BIBI $ 300$ 300Cost of GMCost of GM 900 900GAFSGAFS $1,200$1,200Less: EILess: EI 0 0VCof GSVCof GS $1,200$1,200

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Absorption-Costing Income StatementAbsorption-Costing Income StatementAbsorption-Costing Income StatementAbsorption-Costing Income Statement

2004 2005 20062004 2005 2006SalesLess: Cost of goods soldGross marginLess: 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$ 500BIBI $ 0$ 0

Cost of GMCost of GM 1,0501,050GAFSGAFS $1,050$1,050Less: EILess: EI 0 0CoGSCoGS $1,050$1,050

BIBI $ 0$ 0Cost of GMCost of GM 1,050 1,050GAFSGAFS $1,050$1,050Less: EILess: EI 350 350CoGSCoGS $ 700$ 700

BIBI $ 350$ 350Cost of GMCost of GM 1,050 1,050GAFSGAFS $1,400$1,400Less: EILess: EI 0 0CoGSCoGS $1,400$1,400

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Absorption costing income – Variable costing income = @ Fixed overhead x (Units

produced – Units sold)

Absorption costing income – Variable costing income = @ Fixed overhead x (Units

produced – Units sold)

$500,000 – $550,000 = $1 x (150,000 – 200,000)

$500,000 – $550,000 = $1 x (150,000 – 200,000)

2006200620062006

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If income performance is expected to reflect managerial performance, then managers have the right to expect--1. As sales revenue increases from one period to the

next, all other things being equal, income should increase.

2. As sales revenue decreases from one period to the next, all other things being equal, income should decrease.

3. As sales revenue remains unchanged from one period to the next, all other things being equal, income should remain unchanged.

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二、二、 Segment ReportingSegment Reporting二、二、 Segment ReportingSegment Reporting

Example 3: Elcom, Inc.Income Statement, 2004

Absorption-Costing Basis

Sales $400,000 $290,000 $690,000Less: CoGS 350,000 300,000 650,000Gross margin $ 50,000 $ -10,000 $ 40,000Less: Selling & administrative exp. 30,000 20,000 50,000Net income or loss $ 20,000 $ -30,000 $ -10,000

SStereos tereos VVideo Recorders Total ideo Recorders Total

15 -18 Elcom, Inc. Income Statement, 2004

Variable-Costing Basis

Sales $400,000 $290,000 $690,000Less variable expenses:

Variable C of GS -300,000 -200,000 -500,000Variable S & A -5,000 -10,000 -15,000

Contribution margin $ 95,000 $ 80,000 $175,000Less direct fixed exp.:

Direct fixed overhead -30,000 -20,000 -50,000Direct S & A -10,000 -5,000 -15,000

Segment margin $ 55,000 $ 55,000 $110,000Less common fixed exp.:

Common fixed OH -100,000Common S & A -20,000

Net income or loss $-10,000

Stereos Video Recorders Total Stereos Video Recorders Total

(更便于考核 )

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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

三、三、 Customer ProfitabilityCustomer Profitability三、三、 Customer ProfitabilityCustomer Profitability

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三、三、 Customer ProfitabilityCustomer ProfitabilityEx. 4: Barton, Inc.Ex. 4: Barton, Inc.

三、三、 Customer ProfitabilityCustomer ProfitabilityEx. 4: Barton, Inc.Ex. 4: Barton, Inc.

Profit forProfit for Chain Stores 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

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Barton, Inc.Barton, Inc.Barton, Inc.Barton, Inc. Profit forProfit for Independent Toy Stores 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

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Barton, Inc.Barton, Inc.Barton, Inc.Barton, Inc.

Profit for FairsProfit 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

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p.475Absorption costing Segment margin variable costingFixed expenses

Key Terms 主要术语Key Terms 主要术语

Chapter FifteenChapter FifteenThe EndThe End

Chapter FifteenChapter FifteenThe EndThe End

p.476Calculating the absorption costing & variable costing

Exercises 课后习题Exercises 课后习题