管理会计案例教材.ppt

Activity Based Costing:A Tool to Aid Decision Making Activity Based Costing (ABC) The objective of activity-based costing is to understand overhead and the profitability of products and customers. Activity Based Costing (ABC) How Costs are Treated Under Activity-Based Costing Plantwide Overhead Rate Departmental Overhead Rates Departmental Overhead Rates Departmental Overhead Rates Departmental Overhead Rates Designing an ABC System Designing an ABC System Steps for Implementing ABC Identify and define activities and activity pools. Where possible, trace costs to activities and cost objects. Assign costs to activity cost pools. Calculate activity rates. Assign costs to cost objects. Prepare management reports. Identifying Activity to Include Identifying Activity to Include Activity Cost Pool is a “bucket” in which costs are accumulated that relate to a single activity in the ABC system. The Mechanics of ABC At Classic Brass, the ultimate cost objects are: Products, Customer orders, and Customers. One overhead cost - shipping - can be traced directly to customer orders. The company’s overhead costs are shown on the next slide. Activity-Based Costing at Classic Brass Activity-Based Costing at Classic Brass Activity-Based Costing at Classic Brass Assigning Costs to Activity Cost Pools Assigning Costs to Activity Cost Pools Assigning Costs to Activity Cost Pools Assigning Costs to Activity Cost Pools Computation of Activity Rates The ABC team has determined that Classic Brass has the following total activities for each activity cost pool . . . 1,000 customer orders, 200 new designs, 20,000 machine-hours 100 customers. Computation of Activity Rates Computation of Activity Rates Assigning Costs to Cost Objects Let’s take a look at how our system works for just one customer - Windward Yachts. Windward ordered two products - Stanchions and customer compass housings. Here are the details: Assigning Costs to Cost Objects Let’s take a look at how our system works for just