FORDMOTORCOMPANY福特公司成本计算第二部分解说.ppt

ABC Activity Based Costing BURDEN PRESENTATION ( MANUFACTURING OVERHEAD ) * ABC Activity Based Costing Terminology; “PPI” - Purchased Price Index, Bureau of Labor Statistics Lifetime Years - Expected life of equipment Opportunity Cost - Also referred to as Interest cost MRO (Maintenance, Repair Other) SGA (Sales, General Administration) RDE (Research, Development Engineering) Work Pattern - 20 hrs/day, 237 days/year Technical Availability - Expected Uptime of equipment Manning Type - three levels 1. Direct labor head associated with equipment 2. No direct labor head, but requires indirect support (robots, automation) 3. No direct labor or indirect labor required (conveyors) * Activity Based Costing  BURDEN DEPRECIATION The means of compensating supplier for capital equipment used in the production of Ford parts. Ford does not assume total capacity, we pay for what we use. It is the suppliers responsibility to sell their available equipment time. (These costs are paid in SGA allowance). Ford utilizes the straight line method of depreciation over the entire useful life of the machine. This way the equipment is devalued by a constant amount. Many companies use accelerated depreciation for tax purposes. Tax accounting depreciation rules are not necessarily an equitable way to determine a fair price for a given product. Ford should never pay the entire cost of any capital equipment over the life of a program, unless the expected useful life of that capital is equal to or less than the life of the program. * Activity Based Costing  BURDEN STRAIGHT LINE DEPRECIATION METHOD Formula; (Initial Capital Value) + (Freight Installation) - (Residual Value) (Lifetime hours) 20 hrs/day x 237 days/yr x 86% utilization x 10 yrs Assumptions; Initial Capital Cost $500,000 - Cost of Machine Freight Installation $ 50,000 - 10% default if not availab