某咨询财务分析costaccounting课件

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,09 十月 2023,0,15 十一月 2024,1,某咨询财务分析costaccounting,09 十月 20231某咨询财务分析costaccounti,Importance of cost allocation,Client example,Definitions,direct vs.indirect,fixed vs.variable,breakeven volume,Exercises,cost allocation,breakeven volume,Key takeaways,Agenda,2,CU7122397ECA,Importance of cost allocation,Importance of cost allocation,Client example,Definitions,direct vs.indirect,fixed vs.variable,breakeven volume,Exercises,cost allocation,breakeven volume,Key takeaways,Agenda,3,CU7122397ECA,Importance of cost allocation,Which products are profitable?,What is the breakeven volume by product?,Which products require cost reduction efforts?,How should we price our products?,Which customer segments are most profitable?,It is critical to have accurate and complete cost data to make sound strategic and tactical management decisions.,Why Allocate Costs?,4,CU7122397ECA,Which products are profitable,Historically,only 20%of manufacturing costs were“shared”across product lines.Today,typically 50%of costs are“shared”across products.Shared costs might include rent,freight,and administrative costs.,For simplicity,accounting tracks costs by function(e.g.,materials,salaries,benefits)rather than by the activity devoted to product lines(e.g.,maintenance of product A,freight for product B),For costs that are not easily assigned to individual product lines,companies normally select the most convenient way to assign them,not necessarily the best way,for example,companies tend to allocate rent costs based on something that is easy to measure,such as direct labor dollars for each product line.A better allocation method,however,might be the actual space resource demands of each product line,Most companies lack accurate cost data by product.,Why Costs Are Often Not Allocated Correctly,5,CU7122397ECA,Historically,only 20%of man,Importance of cost allocation,Client example,Definitions,direct vs.indirect,fixed vs.variable,breakeven volume,Exercises,cost allocation,breakeven volume,Key takeaways,Agenda,6,CU7122397ECA,Importance of cost allocation,Middle America Manufacturing,a Bain client,believed that all three of its product lines were profitable.,Return on sales:,10.0%,2.4%,1.6%,Sales:,$250MM,$100MM,$75MM,Middle America Manufacturing-Estimated Profitability,7,CU7122397ECA,Middle America Manufacturing,After a thorough evaluation,the Bain team found that$8.0MM in costs had been allocated incorrectly among the three products.,Middle America Manufacturing-Cost Allocation,8,CU7122397ECA,After a thorough evaluation,The Bain team also determined that an additional$18.8MM in costs should be allocated to the three products.,Middle America Manufacturing-Additional Costs,9,CU7122397ECA,The Bain team also determined,Bains analysis indicated that both bicycles and walking mowers were unprofitable.Middle America then began to investigate whether to exit or fix these two businesses.,Return on sales:,7.2%,(3.0%),(6.9%),Sales:,$250MM,$100MM,$75MM,Middle America Manufacturing-Actual Profitability,10,CU7122397ECA,Bains analysis indicated tha,Importance of cost allocation,Client example,Definitions,direct vs.indirect,fixed vs.variable,breakeven volume,Exercises,cost allocation,breakeven volume,Key takeaways,Agenda,11,CU7122397ECA,Importance of cost allocation,Definitions:,Costs that do not vary directly with changes in output,Costs that vary directly with changes in output,Costs incurred directly in the production or delivery of a firms product or service.These costs can easily be identified with,or assigned to,a particular product,Costs generally incurred by the firm outside of the production process.These costs cannot easily be identified with,or assigned to,a particular product,All costs can be broken down along two dimensions.,Fixed,Variable,Direct,Indirect,vs.,vs.,Examples:,Equipment depreciation,Rent,Advertising,Raw materials,Production labor,Delivery costs,Direct labor,Dedicated equipment,Raw materials,SG&A,Office supplies,Plant manager,Rule of thumb:,If a particular cost changes when production increases or decreases,the cost is variable.,If a particular cost“goes away”when a product is dropped from the product line,the cost is direct.,Types of Costs,12,CU7122397ECA,Definitions:Costs that do not,All costs are variable over a very long time horizon(i.e.,for very large increases in volume),Costs to run and maintain a computer system that tracks product orders are clearly fixed for a small change in volume,such as that associated with a slightly busy month.However,they are variable for a large change in volume,such as that associated with a new plant.,Most costs are semi-variable(i.e.,they tend to be added in lumps as volume increases),Supervisory labor tends to be considered fixed because it is unlikely that additional supervisors would have to be added to handle a small increase,say 10%,in volume.But the workforce can only increase so much before an additional supervisor is needed.,In theory,production labor is