【会计学英文教案】ManagerialAccountingApplications.docVIP

Lesson Notes Lesson 14 Managerial Accounting: Applications Learning objectives Describe segmented reporting and responsibility accounting system Explain the main aspects of Cost-volume-profit analysis Analyze budgeting and budgetary control Describe standard costs and variance analysis Explain the use of managerial accounting in decision making Teaching hours Students major in accounting 0 hours Other students 6 hours Teaching contents Introduction Let’s look at the XYZ Company example. A manager at XYZ Company wants to replace an old machine with a new, more efficient machine. New machine: 　 List price 900000 Annual variable expenses 800000 Expected life in years 5 Old machine: 　 Original cost 720000 Remaining book value 600000 Disposal value now 150000 Annual variable expenses 1000000 Remaining life in years 5 XYZ’s sales are $2000000 per year. Fixed expenses, other than amortization, are $700000 per year. Should the manager purchase the new machine? The manager recommends that the company not purchase the new machine since disposal of the old machine would result in a loss: Remaining book value 600000 Disposal value -150000 Loss from disposal 450000 （1）Is it correct? （2）What’s your comment to the manager’s decision? After learning this chapter, you will know how to employ the tools of managerial accounting and make decisions correctly. Segmented Reporting and Responsibility Accounting Systems Segmented Reporting Organizations may break down their operations into various segments, such as divisions, stores, services, or departments. Thus, management needs reports on each segment for cost management and performance evaluation. Segments may be evaluated as a cost centre, a profit centre, where profit centre reports include information on a segment’s revenues and costs, and an investment centre. Some costs are direct and some are indirect, and indirect costs may be allocated to various de