chapter5管理会计英文版.ppt

Chapter 5;Learning Objective 1;Overview of Absorptionand Variable Costing;Quick Check ?; Which method will produce the highest values for work in process and finished goods inventories? a. Absorption costing. b. Variable costing. c. They produce the same values for these inventories. d. It depends. . .;Harvey Company produces a single productwith the following information available:;Unit product cost is determined as follows:;Learning Objective 2;Income Comparison ofAbsorption and Variable Costing;Absorption Costing;Variablemanufacturing costs only.;Learning Objective 3;Comparing the Two Methods;Fixed mfg. Overhead $150,000 Units produced 25,000 units;Extended Comparisons of Income Data Harvey Company Year Two;Unit Cost Computations;Absorption Costing;Variable Costing;We can reconcile the difference betweenabsorption and variable income as follows:;Comparing the Two Methods;Summary of Key Insights;Effect of Changes in Productionon Net Operating Income;Effect of Changes in ProductionHarvey Company Year One;Unit product cost is determined as follows:;Absorption Costing: Year One;Variable Costing: Year One;Effect of Changes in ProductionHarvey Company Year Two;Unit product cost is determined as follows:;Absorption Costing: Year Two;Variable Costing: Year Two;? Net operating income is not affected by changes in production using variable costing. ? Net operating income is affected by changes in production using absorption costing even though the number of units sold is the same each year.;Learning Objective 4;Impact on the Manager;CVP Analysis, Decision Makingand Absorption costing;External Reporting and Income Taxes;Advantages of Variable Costingand the Contribution Approach;VariableCosting;Variable Costing and theTheory of Constraints (TOC);Impact of JIT Inventory Methods;End of Chapter 7