管理会计MAchap002.ppt

3-* * No, it is not a sunk cost. 3-* * We have looked at the cost classifications used for financial reporting, predicting cost behavior, assigning costs to cost objects, and making business decisions. Now, let’s look at how to classify idle time, overtime, and fringe benefits. 3-* * Appendix 2A: Further Classification of Labor Costs. 3-* * Learning objective number 9 is to properly account for labor costs associated with idle time, overtime, and fringe benefits. 3-* * Machine breakdowns, material shortages, power failures and the like, result in idle time. The labor costs incurred during idle time are ordinarily treated as manufacturing overhead. This enables the costs to be spread across all the production rather than the units in process when the disruptions occur. 3-* * The overtime premiums for all factory workers are usually considered to be part of manufacturing overhead. This is done to avoid penalizing particular products or customer orders simply because they happen to fall on the tail end of the daily production schedule. 3-* * Labor?fringe benefit costs are employment-related costs paid by an employer, such as insurance programs, retirement plans, and supplemental unemployment programs. They also include the employer’s share of Social Security and Medicare, workers’ compensation, federal employment tax, and state unemployment insurance. These costs often add up to 30 to 40 percent of an employee’s base pay. Some companies include all of these costs in manufacturing overhead. Other companies opt for the conceptually superior method of treating fringe benefit expenses of direct laborers as additional direct labor costs. 3-* * Appendix 2B: Cost of Quality. 3-* * Learning objective number 10 is to identify the four types of quality costs and explain how they interact. 3-* * The term quality has many meanings. Quality can mean that a product has many features not found in other products; it can mean that it is well-designed; or it can mean th