重庆大学经济与工商管理学院管理会计课件 chapter8.pptVIP

Variable Costing: Segmented Reporting and Performance Evaluation变动成本法：分部报告与绩效考评 Learning Objectives Explain the differences between variable and absorption costing. Explain how variable costing is useful in evaluating the performance of managers. Learning Objectives Prepare a segmented income statement based on a variable-costing approach and explain how this format can be used with activity-based costing and customer profitability analysis. Explain how variable costing can be used in planning and control. Overview of Absorption and Variable Costing Overview of Absorption and Variable Costing Overview of Absorption and Variable Costing Required: Prepare income statements for the three months Increasing Production Reduces Average Costs Absorption costing treats fixed manufacturing costs as product costs. When more units are produced than sold and absorption costing is used, some of the fixed costs are allocated to ending inventory (asset account) and become recognized in a future period’s cost of goods sold (expense account). Incentive to Overproduce Under absorption costing, manufacturing managers can defer recognition of fixed manufacturing costs by building ending inventory rather than deducting those fixed costs in the year incurred. Ending Inventory ? Asset ? Unexpired cost ???? Expense deducted when items are sold next year Period cost ? Expired cost ???? Expense deducted in year incurred Absorption costing It is costing system which treats all manufacturing costs including both the fixed and variable costs as product costs Variable costing It is a costing system which treats only the variable manufacturing costs as product costs. The fixed manufacturing overheads are regarded as period cost Fixed Manufacturing Overhead Classification of Costs Under Absorption and Variable Costing Presentation of costs on income statement Report Usage Absorption costing is required for external reporting. Variable costing is permitted for internal use only. Varia