(Chapter 5 (Activity-Based Management and Activity-Based Costing
اسلاید 1: Chapter 5Activity-Based Management and Activity-Based CostingCost AccountingFoundations and EvolutionsKinney, Prather, Raiborn
اسلاید 2: Learning Objectives (1 of 2)Identify the focus of activity-based managementExplain why non-value-added activities cause costs to increase unnecessarilyExplain why cost drivers are designated in activity-based costing
اسلاید 3: Learning Objectives (2 of 2)Contrast activity-based costing to the traditional cost accounting systemDescribe the types of information provided by an activity-based costing/management systemExplain when it is appropriate to use activity-based costing
اسلاید 4: Activity-Based ManagementFocuses on activities during production and performance processImproves the value received by customersEnhances profitability
اسلاید 5: ActivityAn activity is a repetitive action performed in fulfillment of a business function
اسلاید 6: Activity-Based ManagementActivity analysisCost driver analysisActivity-based costingContinuous improvement Operational controlQuality managementBusiness process improvementPerformance measurement
اسلاید 7: Activity Based ManagementExternal BenefitsIncreased customer valueEnhanced profitabilityInternal BenefitsMore efficient productionMore accurate cost determinationMore effective performance evaluationABM
اسلاید 8: Activity AnalysisValue-added activityIncreases worth of product or service to a customerCustomer is willing to pay for itNon-value-added activityIncreases time spent on product or service but does not increase worthUnnecessary from customer perspectiveCan be reduced, redesigned or eliminated without affecting market value or qualityBusiness-value-added activities are essentialABM
اسلاید 9: Cost Driver AnalysisCost drivers are factors that have a direct cause-effect relationship to a costLimit the number of cost driversCost of measurement should not exceed benefit of using the cost driver Easy to understandDirectly related to activity being performedAppropriate for measurementABM
اسلاید 10: Cost Driver AnalysisUnit-level costsdirect material, direct laborBatch-level costssetup, inspectionProduct/process-level costsengineering changes, product developmentOrganizational or facility costsbuilding depreciation, plant manager’s salaryABM
اسلاید 11: Activity-Based CostingRecognizes several levels of costsAccumulates costs into related cost poolsUses multiple cost drivers to assign costs to products and servicesABM
اسلاید 12: Two-Step Allocation Collect costs in general ledger and subsidiary accountsIdentify activity centersAccumulate costs into activity center cost pools – cost driversAllocate costs to products and servicesactivity driver measures demands placed on activities, thus, the resources consumed by products/services
اسلاید 13: Traditional vs. ABC CostingWhen ABC implementedCost reduced for high volume, standard productsCost increased for low-volume, complex specialty products
اسلاید 14: Use ABC Costing when….Product Variety and Process ComplexityCaused by mass customizationToo many choices, opportunity for errorsPareto PrincipleCommonality of partsReduced bySimultaneous (or Concurrent) EngineeringDesign for ManufacturabilityABM
اسلاید 15: Use ABC Costing when….Lack of Commonality in Overhead Costs- Some products/services use substantially more overhead than othersProblems with Current Cost Allocations- Significant changes in process with no change in cost allocations- Expense majority of period costs when incurredABM
اسلاید 16: Use ABC Costing when….Changes in Business EnvironmentIncrease in competitionChange in management strategyABM
اسلاید 17: Continuous ImprovementEliminates non-value-added activities to reduce cycle timeMakes products/performs services with zero defectsReduces product costs on an ongoing basisSimplifies products and processesABC Costing Supports Continuous ImprovementABM
اسلاید 18: Criticisms of ABCSignificant amount of time and cost to implementMust overcome barriers to changeDoes not conform to GAAPMay not promote total quality management
اسلاید 19: Advantages of ABC and ABMIdentify and monitor significant technology costsTrace technology costs directly to productsIdentify the cost drivers that create or influence costIdentify activities that do not contribute to perceived customer valueABM
اسلاید 20: Advantages of ABC and ABMIllustrate the impact of new technologies on all elements of performanceTranslate company goals into activity goalsAnalyze the performance of activities across business functionsAnalyze performance problemsPromote standards of excellenceABM
اسلاید 21: QuestionsWhat are the differences between activity-based costing and traditional cost accounting?What are cost drivers and activity drivers?What are two advantages and two criticisms of activity-based costing?
نقد و بررسی ها
هیچ نظری برای این پاورپوینت نوشته نشده است.