Bài giảng môn Kế toán, kiểm toán - Chapter 10: Standard costing and analysis of direct costs

Standard Costing and Analysis of Direct CostsChapter 10McGraw-Hill/IrwinCopyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Managing CostsStandardcostActualcostComparison between standard and actual performancelevelCostvariance10-2Perfection versus Practical Standards: A Behavioral IssueShould we usepractical standardsor perfection standards?Practical standardsshould be set at levelsthat are currentlyattainable with reasonable andefficient effort.10-3I agree. Perfection standards areunattainable and therefore discouraging to most employees.Perfection versus Practical Standards: A Behavioral Issue10-4Standard Cost VariancesCost Variance AnalysisQuantity VariancePrice VarianceThe difference betweenthe actual price and thestandard price.The difference betweenthe actual quantity andthe standard quantity.10-5A General Model for Variance Analysis Actual Quantity Actual Quantity Standard Quantity × × ×  Actual Price Standard Price Standard PricePrice VarianceQuantity Variance Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead Variable overhead  spending variance efficiency variance AQ(AP - SP) SP(AQ - SQ) AQ = Actual Quantity SP = Standard Price AP = Actual Price SQ = Standard Quantity 10-6A General Model for Variance Analysis Actual Quantity Actual Quantity Standard Quantity × × ×  Actual Price Standard Price Standard PricePrice VarianceQuantity VarianceStandard price is the amount that should have been paid for the resources acquired.10-7A General Model for Variance Analysis Actual Quantity Actual Quantity Standard Quantity × × ×  Actual Price Standard Price Standard PricePrice VarianceQuantity VarianceStandard quantity is the quantity that should have been used. 10-8Significance of Cost VariancesSize of varianceDollar amountPercentage of standardRecurring variancesTrendsControllabilityFavorable variancesCosts and benefits of investigationWhat clues help me to determine the variances that I should investigate?10-9If I buy cheaper materials, my direct-materials expenses will be lower than what is budgeted. Then I’ll get my bonus. But we may lose customers because of lower quality.Behavioral Impact of Standard Costing10-10Interaction among VariancesI am not responsible for the unfavorable laborefficiency variance! You purchased cheapmaterial, so it took moretime to process it. You used too much time because of poorly trained workers and poor supervision.10-11Standard Costs and Product CostingStandard material and labor costsare entered into Work-in-Process inventory instead of actual costs.Standard cost variancesare closed directly toCost of Goods Sold. 10-12Advantages of Standard CostingManagement byExceptionStable Product CostsSensible CostComparisonsAdvantagesPerformanceEvaluationEmployeeMotivation10-13Criticisms of Standard CostingNot specificFocus on cost minimizationToo aggregate, too lateDisadvantagesToo much focus on direct-laborNarrow definitionStable production requiredShorter life cycles10-14Use of Standard Costsfor Product Costing10-15Use of Standard Costsfor Product Costing10-16Use of Standard Costsfor Product Costing10-17Use of Standard Costsfor Product Costing10-18