管理制度-标准化成本英文 精品.ppt

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1、Chapter 6:Standard costing and variance analysis Standard Costing & Variance Analysis Management Accounting Control Systembroad approach to control systemsi.e. financial and non-financial controlsthis chapter: examines detailed financial controlsstd.cost & revenue centresprofit & investment centres(

2、this chp.)(chp 5 & 6)Standard Costing & Variance Analysis Financial control systems operated in std. cost centresstd. costing system (Variance analysis)enables any deviations from budgets to be analysed in detailable to measure output & input required to produce each unit of output, and hence contro

3、l cost more effectively especially for manufacturing activities Std. cost: predetermined costs on per unit basis Budgeted cost: predetermined cost on entire activityE.g.: Budgeted outputs = 10,000 unitsStd. cost is 3 p/unitHence, budgeted cost is = 3 x 10,000 units = 30,0001)Standard Costing System

4、Std. Costing Systemsuitable for manufacturing organisations- because activities are repetitive & series of common operations- because output can be measured with input being specified to produce p/unit output- applied to organisations that produce large product range with few number of operations St

5、andard Costing SystemAn overview of a standard costing systemStandard Costing System In establishing variances, comparison is made between total std. cost & total actual cost per operation costhence, variances are allocated to responsibility centres (operations) and so managers are responsible for v

6、ariances in own responsibility centres.Effective control Cannot compare std. product cost with actual product costas each product may involve combination of different operations so which manager is responsible for variance and how can control be achieved effectively? Once variances are allocated to

7、responsibility centres, managers analyse according to Price & Quantity Investigation is done as to why variance occurred so that corrective actions can be taken Eg.: Maybe excessive usage of DM, and if so why?Standard Costing System: ExampleOperation of a standard costing systemComparison is made be

8、tween total std cost & total actual cost to establish variances according to operations / responsibility centres 2) Std. CostDirect Material Std.Direct Labour Std.Man.O/H Std.Std. Qty (of input) xStd.Time / HoursStd. Price (of input) x Std. Wage RateFlexible O/HFixed O/HStd.Hours Produced -largely x

9、 Hourly O/H Rateindependent ofchanges instd.hours producedactivity= actual output (units)-remains constantx std.hour / time p/unit producedover a wide rangeof activities in short term- std. hours produced is an output measure- flexible budget allowances are based on std. hours produced3) Purposes of

10、 Std Costing System(a) Provides prediction of future costs that can be used for decision making(b) Provides a challenging target for individuals to achieveclearly defined target increases motivation increases performancethese challenging targets are quantitative and motivates higher performance than

11、 non-quantitative targets(c) Assist in budget setting and evaluating managerial performance(d) Act as control devicewhen std. is compared to actual variances are highlighted, analysed, investigated corrective actions are taken to adjust std. performance(e) Helps managers to control costs at own resp

12、onsibility centres & to be more accountable as variances are allocated to responsibility centres4) Variance AnalysisStd Variable / Marginal Costing SystemStd Absorption Costing SystemProfit Variance (diff. bet. Budgeted & actual profit)Selling & Dist.cost var.Total production cost var.Total sales ma

13、rgin var. Sales margin Sales price var. margin. volume var.Total DM Var.Total DL Var.Total VariableFixed O/H Exp. Var.O/H Var.Material PriceWage / LabourVariableVariable Efficiencyvar.rate var.Exp. var.var. & &Material UsageLabour Efficiencyvar.var.(a) Material Price VarianceRefer to E.g. 17.1 (pg 4

14、26)(Std Price Actual Price) x Actual Quantity Purchased(SP AP) AQPMaterial A(10 - 11) x 19 000kg = 19 000 Adverse (A)Material B(15 - 14) x 10 100kg = 10 100 Favourable (F) Adverse: maybe because general price increase; external conditions in market; failure to source for correct suppliersFavourable:

15、 could also be source of supplies of inferior quality hence cheaper; general price decrease; manage to secure good but cheap supplies(b) Material Usage Variance(Std Quantity for Actual Output Actual Quantity for Actual Output) x Std Price(SQ AQ*) SP Material A(2 kg x 9 000) - 19 000 x 10 = 10 000 AM

16、aterial B(1 kg x 9 000) - 10 100 x 15 = 16 500 AAdverse: careless handling of material by worker; wastage; purchase of inferior material and therefore wastage; changes in methods of production.Favourable: effective & efficient material handling; better production methods to decrease wastage of materials etc.* -So evaluation is done on budgeted figures but actual situation- More comparable to actual results as condition is same- Manager also evaluated on more valid / realistic results(c) Total Ma