【管理精品】变动成本法与吸收成本法(ppt 58)(英文版).ppt

Absorption Costing 吸收成本法 A system of accounting for costs in which both fixed and variable production costs are considered product costs. Variable Costing 变动成本法 A system of cost accounting that only assigns the variable cost of production to products. Absorption and Variable Costing Absorption and Variable Costing Absorption and Variable Costing Greenberg Case see: P 581 Variable costing Fixed factory overhead not to be allocated to the products manufactured. Unit product cost only includes variable manufacturing costs ( direct materials, direct labor, variable factory overhead ) Absorption costing Fixed factory overhead to be allocated into the product manufactured. Unit cost of product includes all manufacturing costs ( direct material, direct labor, variable factory overhead, and fixed factory overhead) Standard unit cost expected Fixed factory overhead $150,000 to be allocated into the products under fixed overhead rate. Selection of expected activity level for computing the fixed overhead rate Absorption and Variable Costing Mellon Co. produces a single product with the following information available Absorption and Variable Costing Unit product cost is determined as follows: Absorption Costing Income Statements Mellon Co. had no beginning inventory, produced 25,000 units and sold 20,000 units this year at $30 each. Absorption Costing Income Statements Mellon Co. had no beginning inventory, produced 25,000 units and sold 20,000 units this year at $30 each. Absorption Costing Income Statements Mellon Co. had no beginning inventory, produced 25,000 units and sold 20,000 units this year at $30 each. Variable Costing Income Statements Variable Costing Income Statements Variable Costing Income Statements Comparing Absorption andVariable Costing Let’s compare the methods. Comparing Absorption andVariable Costing Let’s compare the methods. Comparing Absorption andVariable Costing Let’s compare the methods. Reconciling Income Under Absorption a