金陵科技学院-管理会计（双语）LECTURE 2.pptVIP

CVP: Graphically CVP and Income Taxes From time to time it is necessary to move back and forth between pre-tax profit (OI) and after-tax profit (NI), depending on the facts presented After-tax profit can be calculated by: OI x (1-Tax Rate) = NI NI can substitute into the profit planning equation through this form: OI = I I NI I (1-Tax Rate) Sensitivity Analysis CVP Provides structure to answer a variety of “what-if” scenarios “What” happens to profit “if”: Selling price changes Volume changes Cost structure changes Variable cost per unit changes Fixed cost changes Margin of Safety One indicator of risk, the Margin of Safety (MOS) measures the distance between budgeted sales and breakeven sales: MOS = Budgeted Sales – BE Sales The MOS Ratio removes the firm’s size from the output, and expresses itself in the form of a percentage: MOS Ratio = MOS ÷ Budgeted Sales Operating Leverage Operating Leverage (OL) is the effect that fixed costs have on changes in operating income as changes occur in units sold, expressed as changes in contribution margin OL = Contribution Margin Operating Income Notice these two items are identical, except for fixed costs Part 4 High-Low Method Four steps of H-L method Select highest and lowest value of independent variable Une formula to calculate variable rate Calculate fixed amount Estimating the total cost Lecture exemple cf.P18 * * “Few businesses plan to fail, but many of those that flop failed to plan ”很少有商家计划失败，而许多失败的商家都是因为没有计划 * Non-financial data: Customer satisfaction/The quality of products and services The first point here is obvious,but critical. A budget is an estimate, calculated before the event. Think of a period say a year, as a continuous line as follows, budgeting happens here.It is not until the end of the period that we have the actual figures * Budgeting is useful when it is related to the strategy of the company Long-run plannng is expressed by long-run