某咨询财务分析CostAccounting.pptx

bcCost AccountingAuthor: Collins QianReviewer: Bob ArmacostMarch 1998Copyright? 1998 Bain Company, Inc. AgendaImportance of cost allocationClient exampleDefinitionsdirect vs. indirect, fixed vs. variablebreakeven volumeExercisescost allocationbreakeven volumeKey takeawaysCU7122397ECA AgendaImportance of cost allocationClient exampleDefinitionsdirect vs. indirect, fixed vs. variablebreakeven volumeExercisescost allocationbreakeven volumeKey takeawaysCU7122397ECA 本资料来源CU7122397ECAWhy Allocate Costs?It is critical to have accurate and complete cost data to make sound strategic and tactical management decisions.Which products are profitable?What is the breakeven volume by product?Which products require cost reduction efforts?How should we price our products?Which customer segments are most profitable?CU7122397ECA Why Costs Are Often Not Allocated CorrectlyMost companies lack accurate cost data by product.Historically, only 20% of manufacturing costs were “shared” across product lines. Today, typically 50% of costs are “shared” across products. Shared costs might include rent, freight, and administrative costs.For simplicity, accounting tracks costs by function (e.g., materials, salaries, benefits) rather than by the activity devoted to product lines (e.g., maintenance of product A, freight for product B)For costs that are not easily assigned to individual product lines, companies normally select the most convenient way to assign them, not necessarily the best wayfor example, companies tend to allocate rent costs based on something that is easy to measure, such as direct labor dollars for each product line. A better allocation method, however, might be the actual space resource demands of each product lineCU7122397ECA AgendaImportance of cost allocationClient exampleDefinitionsdirect vs. indirect, fixed vs. variablebreakeven volumeExercisescost allocationbreakeven volumeKey takeawaysCU7122397ECA Middle America Manufacturing - Estimated ProfitabilityMiddle America