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第一章思考题1.答题要点：（1）股东财富最大化目标相比利润最大化目标具有三方面的优点：考虑现金流量的时间价值和风险因素、克服追求利润的短期行为、股东财富反映了资本与收益之间的关系；（2）通过企业投资工具模型分析，可以看出股东财富最大化目标是判断企业财务决策是否正确的标准；（3）股东财富最大化是以保证其他利益相关者利益为前提的。
2.答题要点：（1）激励，把管理层的报酬同其绩效挂钩，促使管理层更加自觉地采取满足股东财富最大化的措施；（2）股东直接干预，持股数量较多的机构投资者成为中小股东的代言人，通过与管理层进行协商，对企业的经营提出建议；（3）被解聘的威胁，如果管理层工作严重失误，可能会遭到股东的解聘；（4）被收购的威胁，如果企业被敌意收购，管理层通常会失去原有的工作岗位，因此管理层具有较强动力使企业股票价格最大化。
3.答题要点：（1）利益相关者的利益与股东利益在本质上是一致的，当企业满足股东财富最大化的同时，也会增加企业的整体财富，其他相关者的利益会得到更有效的满足：（2）股东的财务要求权是“剩余要求权”，是在其他利益相关者利益得到满足之后的剩余权益。
（3）企业是各种利益相关者之间的契约的组合。
（4）对股东财富最大化需要进行一定的约束。
4.答题要点：（1）财务经理负责投资、筹资、分配和营运资金的管理；（2）财务经理的价值创造方式主要有：一是通过投资活动创造超过成本的现金收入，二是通过发行债券、股票及其他方式筹集能够带来现金增量的资金。
5.答题要点：（1）为企业筹资和投资提供场所；（2）企业可通过金融市场实现长短期资金的互相转化；（3）金融市场为企业的理财提供相关信息。
6.答题要点：（1）利率由三部分构成：纯利率、通货膨胀补偿、风险收益；（2）纯利率是指没有风险和没有通货膨胀情况下的均衡点利率，通常以无通货膨胀情况下的无风险证券利率来代表纯利率；（3）通货膨胀情况下，资金的供应者必然要求提高利率水平来补偿购买力的损失，所以短期无风险证券利率＝纯利率＋通货膨胀补偿；（4）风险报酬要考虑违约风险、流动性风险、期限风险，他们都会导致利率的增加。
CHAPTER 1GLOBALIZATION AND THE MULTINATIONAL FIRMSUGGESTED ANSWERS TO END—OF-CHAPTER QUESTIONS QUESTIONS1 。
Why is it important to study international financial management？Answer: We are now living in a world where all the major economic functions, i.e.，consumption，production, and investment，are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance some twenty years ago. At that time, most professors customarily (and safely, to some extent) ignored international aspects of finance 。
This mode of operation has become untenable since then.2. How is international financial management different from domestic financial management？Answer ：There are three major dimensions that set apart international finance from domestic finance 。
管理会计第15版英文版答案021、He _______ getting up early. [单选题] *A. used toB. is used to(正确答案)C. is usedD. is used for2、85．You’d better? ? ? ? ? a taxi, or you’ll be late. [单选题] *A．take(正确答案)B．takingC．tookD．to take3、John is quite _______. He likes to attend activities in?his spare time. [单选题] *A. active(正确答案)B. quietC. lazyD. honest4、--Henry treats his secretary badly.--Yes. He seems to think that she is the _______ important person in the office. [单选题] *A. littleB. least(正确答案)C. lessD. most5、The flowers _______ sweet. [单选题] *A. tasteB. smell(正确答案)C. soundD. feel6、The market economy is quickly changing people’s idea on_____is accepted. [单选题] *A.what(正确答案)B.whichC.howD.that7、Jeanne's necklace was _____ 500 francs at most. [单选题] *A. worthyB. costC. worth(正确答案)D. valuable8、Just use this room for the time being ,and we’ll offer you a larger one _______it becomes available [单选题] *A. as soon as(正确答案)B unless .C as far asD until9、78．According to a report on Daily Mail, it’s on Wednesday（）people start feeling really unhappy. [单选题] *A. whenB. whichC. whatD. that(正确答案)10、I’d like to know the _______ of the club. [单选题] *A. schedule(正确答案)B. schoolC. menuD. subject11、( ) What _____ fine weather we have these days! [单选题] *A. aB. theC. /(正确答案)D. an12、The scenery is so beautiful. Let’s _______. [单选题] *A. take photos(正确答案)B. take mapsC. take busD. take exams13、He can’t meet his friends tonight because he _______ do homework. [单选题] *A. has to(正确答案)B. needC. have toD. don’t have to14、While my mother _______ the supper, my father came back. [单选题] *A. cooksB. is cookingC. was cooking(正确答案)D. has cooked15、46．The pants look cool.You can ________. [单选题] *A．try it onB．try on itC．try them on(正确答案)D．try on them16、Its’time to go to bed. _______ your computer, please. [单选题] *A. Turn onB. Turn inC. Turn off(正确答案)D. Turn down17、He prefers to use the word “strange”to describe the way（）she walks. [单选题] *A. in which(正确答案)B. by whichC. in thatD. by that18、He is a student of _______. [单选题] *A. Class SecondB. the Class TwoC. Class Two(正确答案)D. Second Two19、( ) It ___ the Chinese people 8 years to build the Dam. [单选题] *A. took(正确答案)B. costsC. paidD. spends20、My father and I often go ______ on weekends so I can ______ very well. （）[单选题] *A. swim; swimmingB. swims; swimC. swimming; swimmingD. swimming; swim(正确答案)21、75．As a student in Senior Three, I must work hard．（）, I should take exercise to strengthen my body．[单选题] *A.OtherwiseB.Meanwhile(正确答案)C.ThereforeD.Thus22、The huntsman caught only a（）of the deer before it ran into the woods. [单选题] *A. gazeB. glareC. glimpse(正确答案)D. stare23、--Don’t _______ too late, or you will feel tired in class.--I won’t, Mum. [单选题] *A. call upB. wake upC. stay up(正确答案)D. get up24、5 He wants to answer the ________ because it is an interesting one. [单选题] * A．problemB．question(正确答案)C．doorD．plan25、A brown bear escaped from the zoo, which was a（）to everyone in the town. [单选题] *A. HarmB. violenceC. hurtD. threat(正确答案)26、He went to America last Friday. Alice came to the airport to _______ him _______. [单选题] *A. take; offB. see; off(正确答案)C. send; upD. put; away27、This kind of work _______ skills and speed. [单选题] *A. looks forB. waits forC. calls for(正确答案)D. cares for28、A survey of the opinions of students（）that they admit several hours of sitting in front of the computer harmful to health. [单选题] *A. show；areB. shows ；is(正确答案)C.show；isD.shows ；are29、My English teacher has given us some _______ on how to study English well. [单选题] *A. storiesB. suggestions(正确答案)C. messagesD. practice30、I used to take ____ long way to take the bus that went by ____ tunnel under the water. [单选题] *A. a, aB. a. theC. a, /(正确答案)D. the, a。
管理会计课后习题学习指导书习题答案(第一章)(总9页)-本页仅作为预览文档封面，使用时请删除本页-第一章课后习题一、思考题1.从管理会计定义的历史研究中你有哪些思考和想法？答：从管理会计定义的历史研究中我发现，管理会计的概念是随着历史的发展不断完善的，因为在历史进程中，人们会发现原有概念的不足，进而不断去修改完善，这才有了现在的管理会计。
这也启发了我们，要善于发现问题，去思考，解决问题。
2.经济理论对管理会计的产生和发展有哪些重要影响你从中得到了什么启示答：社会经济的发展和经济理论的丰富，使得管理会计的理论体系逐渐完善，内容更加丰富，逐步形成了预测、决策、预算、控制、考核、评价的管理会计体系。
由于市场竞争的日趋激烈，人们认识到对外部环境的准确决策就是不可能的，企业的计划必须以外部环境的变化为基础，更加留心市场变化的动态，更加密切关注竞争对手。
与此相适应，战略管理的理论有了长足的发展。
这启示了我们，要细心观察，因地制宜，适应变化莫测的外部环境，进行自身调整。
同时，实践出真知，只有经过了实践考验理论才是好理论。
3.科学管理理论对现代管理会计有哪些重要影响这些影响在管理会计的不同发展阶段是如何表现的答：现代管理科学为管理会计的形成奠定了一定的基础。
在以成本控制为基本特征的管理会计阶段，古典组织理论特别是科学管理理论的出现促使现代会计分化为财务会计和管理会计，现代会计的管理职能得以表现出来。
该阶段，管理会计以成本控制为基本特征，以提高企业的生产效率和工作效率为目的，其主要内容包括标准成本、预算控制、差异分析。
在以预测、决策为基本特征的管理会计阶段，以标准成本制度为主要内容的管理控制继续得到了强化并有了新的发展。
责任会计将行为科学的理论与管理控制的理论结合起来，不仅进一步加强了对企业经营的全面控制（不仅仅是成本控制），而且将责任者的责、权、利结合起来，考核、评价责任者的工作业绩，从而极大地激发了经营者的积极性和主动性。
管理会计习题答案第一章一、（略）二、1、A；2、A；3、D；4、C；5、B三、1、BCD；2、ABC四、1、是；2、错；3、是；4、错第2章成本性态分析自测题参考答案二、多项选择题三、判断题四、计算题1、（1）采用高低点法对电费进行分解。
高点（1800，7250）、低点（900，4250）b=3.33，a=1256建立成本函数模型：y=1256+3.33x（2）采用回归直线法对进行分解。
b=3.25，a=1310.42建立成本函数模型：y=1310.42+3.25x（3）依据回归直线法得到的成本函数模型：y=1310.42+3.25x将产量x=1900代入模型中，求得电费y=7485.42（元）2、采用回归直线法对进行分解。
r=0.99→+1所以X与Y基本正相关b=9.98，a=181.74建立成本函数模型：y=181.74+9.98x3、（1）分步分析程序8月份混合成本=82500-60000-10000=12500（元）固定成本=60000（元）单位变动成本b1 =100（元/件）12月份固定成本=8月份固定成本=60000（元）12月份变动成本=20000（元）12月份混合成本=95000-60000-20000=15000（元）依据高点坐标（200，15000）、低点坐标（100，12500）确定b2 =25（元/件），a2 =10000（元）建立成本函数模型：y=（60000+10000）+（25+100）x =70000+125x（2）同步分析程序高点（200，95000），低点（100，82500）b=125（元/件），a=70000（元）建立成本函数模型：y =70000+125x4、a=26000（元）b =294（元/件）建立成本函数模型为：y=26000+294x五、案例分析题该化工厂在对总成本进行分解时，把明显属于变动成本或固定成本的项目剔除后，其余作为混合成本，用一定方法进行分解。
管理会计第五章课后习题和答案1. 课后习题1.1 简答题1.什么是成本管理？2.成本管理的主要目标是什么？3.请4.并解释成本管理中的两个主要手段。
5.什么是差异分析？6.为什么差异分析在成本管理中很重要？1.2 计算题1.计算以下三种差异：–实际成本与标准成本之间的成本差异–实际产量与标准产量之间的产量差异–实际销售量与标准销售量之间的销量差异并解释每种差异的意义。
2.某公司的标准成本和实际成本如下：类别标准成本实际成本直接材料￥500￥600直接人工￥300￥280制造费用￥200￥220计算实际成本与标准成本之间的成本差异，并说明其原因。
2. 答案2.1 简答题1.成本管理是指通过对成本的预测、分析和控制，以达到有效管理企业的成本和提升企业绩效的一种管理方法。
2.成本管理的主要目标是降低企业的成本、提高企业的效益和竞争力。
3.成本管理的两个主要手段包括标准成本和差异分析。
标准成本是根据过去经验和期望制定的预计成本，用于衡量实际成本的偏离程度；差异分析则是比较实际成本与标准成本之间的差异，并进行分析和解释。
4.差异分析是指通过比较实际成本与标准成本之间的差异，分析造成差异的原因，并进行相应的管理措施和决策。
5.差异分析在成本管理中很重要，因为它可以帮助企业及时发现成本偏差，并进一步分析原因，从而采取适当的措施进行成本控制，提高企业效益。
2.2 计算题–成本差异 = 实际成本–标准成本–产量差异 = 实际产量–标准产量–销量差异 = 实际销量–标准销量这三种差异的意义是：–成本差异反映了实际成本与标准成本之间的差距，可以用来衡量企业在生产过程中成本控制的效果。
–产量差异衡量了实际产量与标准产量之间的差异，可以帮助企业评估生产效率和资源利用情况。
–销量差异反映了实际销量与标准销量之间的差距，对于企业的销售业绩评估和市场需求的分析是非常重要的。
1.实际成本与标准成本之间的成本差异为：成本差异 = 实际成本标准成本 = 600500 = 100该成本差异的原因可能是直接材料、直接人工或制造费用发生了偏差，或者是三者之间的组合效应导致的。
第二章多元化成本概念复习思考题1要求：由上段所述,试指出哪些项目属于下列成本项目〔一项成本可能具备一种以上的成本项目〕。
解：复习思考题2要求：请据此确定产品丙应否停产？解：差别收入=150000〔元〕差别成本=105000+15000=120000〔元〕差别收入超过差别成本30000元。
可见,产品丙不应停产。
复习思考题3问题〔1〕：假定〔a〕旅客有35人,〔b〕旅客有50人,〔c〕旅客有80人,每位旅客的单位成本是多少？问题〔2〕：假定国际旅游公司预计8月份有1500位参加者,且共计需要18架客机,问每位旅客的单位成本又是多少？可以用问题〔1〕中的单位成本预计8月份的成本吗？解：100 000×18÷1500=1200〔元/人〕根据预计的人数分别进行成本预测。
复习思考题4要求〔1〕：匹配以上业务职能和相应的典型成本动因。
要求〔2〕：对以上东湖制药厂业务职能各举一项成本动因。
〔略〕复习思考题5、6、8文字叙述题目〔略〕复习思考题7要求<1>:利用高低点法和回归直线法进行成本分解。
①表2-13资料A.利用高低点法将下列资料中的半变动成本加以分解：解:B.利用回归直线法将下列资料中的半变动成本加以分解：②表2-14资料要求〔1〕：利用高低点法进行成本分解：〔略〕要求〔2〕：利用回归直线法进行成本分解：<保留2位小数>要求〔2〕:分析机器工时与维修费之间的相关程度。
解：机器工时与维修费之间存在较好的线性相关性。
复习思考题9要求〔1〕: 编制附有产品成本附表的利润表。
就产量而言,判断各个成本项目是变动成本还是固定成本。
解：利润表编制单位：Compbell公司20×7年单位：元说明：管理费用包括厂房设备财产税、厂部设备火灾保险费用；销售费用包括促销费用、销售员工薪水、运输费用、售后服务费。
Compbell公司产品成本一览表说明：假设材料装卸成本发生在材料验收入库后的企业内部装卸。
第一章练习题及答案一、单项选择题1 、管理会计的雏形产生于（ B ）。
A.19 世纪末B.20 世纪上半叶C. 二次世界大战之后D.20 世纪 70 年代2 、 20 世纪 50 年代以来，管理会计进入了 " 以预测决策会计为主，以规划控制会计和责任会计为辅 " 的发展阶段，该阶段被称为（ D ）。
A. 管理会计萌芽阶段B. 管理会计过渡阶段C. 传统管理会计阶段D. 现代管理会计阶段3 、在管理会计学中，将 " 为实现管理会计目标，合理界定管理会计工作的时空泛围，统一管理会计操作方法和程序，组织管理会计工作不可缺少的前提条件 " 称为（ A ）。
A. 管理会计假设B. 管理会计原则C. 管理会计术语D. 管理会计概念4 、管理会计的服务侧重于 ( D ) 。
A. 股东B. 外部集团C. 债权人D. 企业 B. 规划控制会计C. 成本会计D. 责任会计6 、管理会计正式形成和发展于 ( B ) 。
A.20 世纪初B.20 世纪 50 年代C.20 世纪 70 年代D.20 世纪 80 年代7 、管理会计信息在质量上符合相关性和可信性的要求 , 则说明管理会计信息符合( D ) 。
A. 效益性原则B. 最优化原则C. 及时性原则D. 决策有用性原则8 、下列项目中，能够规定管理会计工作对象基本活动空间的假设是（ A ）A. 多层主体假设B. 理性行为假设C. 合理预期假设D. 充分占有信息假设二、多项选择题1 、管理会计属于（ ABE ）。
A. 现代企业会计B. 经营型会计C. 外部会计D. 报账型会计E. B. 控制经济过程C. 规划经营目标D. 预测经济前景E. 考核评价经营业绩3 、 ( ABD ) 属于现代管理会计的基本 B. 责任会计C. 预算会计D. 规划控制会计E. 以上都是4 、 ( AC ) 的出现标志管理会计的原始雏形的形成。
A. 标准成本计算制度B. 变动成本法C. 预算控制D. 责任考评E. 以上都是5 、下列项目中，属于在现代管理会计阶段产生和发展起来的有 ( BCDE ) 。
第二章练习题1.某公司需用一台设备，买价为9000元，可用8年。
如果租用，则每年年初需付租金1500元。
假设利率8%。
要求：试决定企业应租用还是购买该设备。
解：用先付年金现值计算公式计算8年租金的现值得：V0 = A×PVIFA i，n×（1 + i）= 1500×PVIFA8%，8×（1 + 8%）= 1500×5.747×（1 + 8%）= 9310.14（元）因为设备租金的现值大于设备的买价，所以企业应该购买该设备。
2.某企业全部用银行贷款投资兴建一个工程项目，总投资额为5000万元，假设银行借款利率为16%。
该工程当年建成投产。
解：（1）查PVIFA表得：PVIFA16%，8 = 4.344。
由PVAn= A·PVIFAi，n得：A = PVA n／PVIFA i，n= 1151.01（万元）所以，每年应该还1151.01万元。
（2）由PVA n= A·PVIFA i，n得：PVIFA i，n =PVA n／A 则PVIFA16%，n = 3.333查PVIFA表得：PVIFA16%，5 = 3.274，PVIFA16%，6= 3.685，利用插值法：年数年金现值系数5 3.274n 3.333 6 3.685由以上计算，解得：n = 5.14（年） 所以，需要5.14年才能还清贷款。
3、中原公司和南方公司股票的报酬率及其概率分布如表2-18所示 解：（1）计算两家公司的预期收益率： 中原公司 = K 1P 1 + K 2P 2 + K 3P 3= 40%×0.30 + 20%×0.50 + 0%×0.20 = 22%南方公司 = K 1P 1 + K 2P 2 + K 3P 3= 60%×0.30 + 20%×0.50 +（-10%）×0.20= 26%（2）计算两家公司的标准差：中原公司的标准差为：%1420.0%)22%0(50.0%)22%20(30.0%)22%40(222=⨯-+⨯-+⨯-=σ南方公司的标准差为：%98.2420.0%)26%10(20.0%)26%20(30.0%)26%60(222=⨯--+⨯-+⨯-=σ（3）计算两家公司的变异系数： 中原公司的变异系数为： CV =14％／22％＝0.64南方公司的变异系数为：CV =24.98％／26％＝0.96由于中原公司的变异系数更小，因此投资者应选择中原公司的股票进行投资。
管理会计（高等教育出版社）于增彪（清华大学）改编余绪缨（厦门大学）审校CHAPTER 16COST-VOLUME-PROFIT ANALYSIS: A MANAGERIAL PLANNING TOOL QUESTIONS FOR WRITING AND DISCUSSION1.CVP analysis allows managers to focus onselling prices, volume, costs, profits, and sales mix. Many diffe rent “what if” questions can be asked to assess the effect on profits of changes in key variables.2.The units-sold approach defines sales vo-lume in terms of units of product and gives answers in these same terms. The sales-revenue approach defines sales volume in terms of revenues and provides answers in these same terms.3.Break-even point is the level of sales activitywhere total revenues equal total costs, or where zero profits are earned.4.At the break-even point, all fixed costs arecovered. Above the break-even point, only variable costs need to be covered. Thus, contribution margin per unit is profit per unit, provided that the unit selling price is greater than the unit variable cost (which it must be for break-even to be achieved).5.Profit = $7.00 ⨯ 5,000 = $35,0006.Variable cost ratio = Variable costs/Sales.Contribution margin ratio = Contribution margin/Sales. Contribution margin ratio = 1 –Variable cost ratio.7.Break-even revenues = $20,000/0.40 =$50,0008.No. The increase in contribution is $9,000(0.30 ⨯ $30,000), and the increase in adver-tising is $10,000.9.Sales mix is the relative proportion sold ofeach product. For example, a sales mix of3:2 means that three units of one productare sold for every two of the second product.10.Packages of products, based on the ex-pected sales mix, are defined as a singleproduct. Selling price and cost informationfor this package can then be used to carryout CVP analysis.11.Package contribution margin: (2 ⨯ $10) + (1⨯ $5) = $25. Break-even point = $30,000/$25= 1,200 packages, or 2,400 units of A and1,200 units of B.12.Profit = 0.60($200,000 – $100,000) =$60,00013. A change in sales mix will change the contri-bution margin of the package (defined by thesales mix) and, thus, will change the unitsneeded to break even.14.Margin of safety is the sales activity inexcess of that needed to break even. Thehigher the margin of safety, the lower therisk.15.Operating leverage is the use of fixed coststo extract higher percentage changes inprofits as sales activity changes. It isachieved by increasing fixed costs while lo-wering variable costs. Therefore, increasedleverage implies increased risk, and viceversa.16.Sensitivity analysis is a “what if” techniquethat examines the impact of changes in un-derlying assumptions on an answer. A com-pany can input data on selling prices, varia-ble costs, fixed costs, and sales mix and setup formulas to calculate break-even pointsand expected profits. Then, the data can bevaried as desired to see what impactchanges have on the expected profit.17.By specifically including the costs that varywith nonunit drivers, the impact of changesin the nonunit drivers can be examined. Intraditional CVP, all nonunit costs are lumpedtogether as “fixed costs.” While the costs arefixed with respect to units, they vary with re-spect to other drivers. ABC analysis remindsus of the importance of these nonunit driversand costs.18.JIT simplifies the firm’s cost equation sincemore costs are classified as fixed (e.g., di-rect labor). Additionally, the batch-level vari-able is gone (in JIT, the batch is one unit).Thus, the cost equation for JIT includes fixedcosts, unit variable cost times the number ofunits sold, and unit product-level cost timesthe number of products sold (or related cost driver). JIT means that CVP analysis ap-proaches the standard analysis with fixed and unit-level costs only.EXERCISES 16–11. e2. c3. d4. b5. a16–21. f2. d3. b4. a5. g6. e7. c16–31. Units = Fixed cost/Contribution margin= $10,350/($15 – $12)= 3,4502. Sales (3,450 ⨯ $15) $51,750Variable costs (3,450 ⨯ $12) 41,400Contribution margin $ 10,350Fixed costs 10,350Operating income $ 03. Units = (Target income + Fixed cost)/Contribution margin= ($9,900 + $10,350)/($15 – $12)= $20,250/$3= 6,7501. Contribution margin per unit = $15 – $12 = $3Contribution margin ratio = $3/$15 = 0.20, or 20%2. Variable cost ratio = $60,000/$75,000 = 0.80, or 80%3. Revenue = Fixed cost/Contribution margin ratio= $10,350/0.20= $51,7504. Revenue = (Target income + Fixed cost)/Contribution margin ratio= ($9,900 + $10,350)/0.20= $101,25016–51. 0.15($15)(Units) = $15(Units) – $12(Units) – $10,350$2.25(Units) = $3(Units) – $10,350$10,350 = $0.75(Units)Units = 13,8002. Sales (13,800 ⨯ $15) $ 207,000Variable costs (13,800 ⨯ $12) 165,600Contribution margin $ 41,400Fixed costs 10,350Operating income $ 31,050$31,050 does equal 15% of $207,000, so the answer of 13,800 units is correct.1. Before-tax income = (After-tax income)/(1 – Tax rate)= $6,000/(1 – 0.40)= $10,000Units = (Target income + Fixed cost)/Contribution margin= ($10,000 + $10,350)/($15 – $12)= 6,783**The answer is 6,783.3333, and so it must be rounded to a whole unit. You may prefer that students round up the answer to 6,784, instead, since it is better to be marginally above break-even than marginally below it.2. Before-tax income = (After-tax income)/(1 – Tax rate)= $6,000/(1 – 0.50)= $12,000Units = (Target income + Fixed cost)/Contribution margin= ($12,000 + $10,350)/($15 – $12)= 7,4503. Before-tax income = (After-tax income)/(1 – Tax rate)= $6,000/(1 – 0.30)= $8,571Units = (Target income + Fixed cost)/Contribution margin= ($8,571 + $10,350)/($15 – $12)= 6,30716–71. Break-even units = Fixed costs/(Price – Variable cost)= $150,000/($2.45 – $1.65)= $150,000/$0.80= 187,5002. Units = ($150,000 + $12,600)/($2.45 – $1.65)= $162,600/$0.80= 203,2503. Unit variable cost = $1.65Unit variable manufacturing cost = $1.65 – $0.17 = $1.48The unit variable cost is used in cost-volume-profit analysis, since it includes all of the variable costs of the firm.1. Before-tax income = $25,200/(1 – 0.40) = $42,000Units = ($150,000 + $42,000)/$0.80= $192,000/$0.80= 240,0002. Before-tax income = $25,200/(1 – 0.30) = $36,000Units = ($150,000 + $36,000)/$0.80= $186,000/$0.80= 232,5003. Before-tax income = $25,200/(1 – 0.50) = $50,400Units = ($150,000 + $50,400)/$0.80= $200,400/$0.80= 250,5004. 215,000 – 187,500 = 27,500 pansor$526,750 – $459,375 = $67,375A B C D Sales $ 5,000 $ 15,600* $ 16,250* $9,000 Variable costs 4,000 11,700 9,750 5,400* Contribution margin $ 1,000 $ 3,900 $ 6,500* $3,600* Fixed costs 500* 4,000 6,100* 750 Operating income (loss) $ 500 $ (100)* $ 400 $2,850 Units sold 1,000* 1,300 125 90 Price/unit $5 $12* $130 $100* Variable cost/unit $4* $9 $78* $60* Contribution margin/unit $1* $3 $52* $40* Contribution margin ratio 20%* 25%* 40% 40%* Break-even in units 500* 1,334* 118* 19* *Designates calculated amount.Note: When the calculated break-even in units includes a fractional amount, it has been rounded up to the next whole unit.16–101. Variable cost ratio = Variable costs/Sales= $399,900/$930,000= 0.43, or 43%Contribution margin ratio = (Sales – Variable costs)/Sales= ($930,000 – $399,900)/$930,000= 0.57, or 57%2. Break-even sales revenue = $307,800/0.57 = $540,0003. Margin of safety = Sales – Break-even sales= $930,000 – $540,000 = $390,0004. Contribution margin from increased sales = ($7,500)(0.57) = $4,275Cost of advertising = $5,000No, the advertising campaign is not a good idea, because the company’s o p-erating income will decrease by $725 ($4,275 – $5,000).1. Income = Revenue – Variable cost – Fixed cost0 = 1,500P – $300(1,500) – $120,0000 = 1,500P – $450,000 – $120,000$570,000 = 1,500PP = $3802. $160,000/($3.50 – Unit variable cost) = 128,000 unitsUnit variable cost = $2.2516–121. Contribution margin per unit = $5.60 – $4.20*= $1.40*Variable costs per unit:$0.70 + $0.35 + $1.85 + $0.34 + $0.76 + $0.20 = $4.20Contribution margin ratio = $1.40/$5.60 = 0.25 = 25%2. Break-even in units = ($32,300 + $12,500)/$1.40 = 32,000 boxesBreak-even in sales = 32,000 ⨯ $5.60 = $179,200or= ($32,300 + $12,500)/0.25 = $179,2003. Sales ($5.60 ⨯ 35,000) $ 196,000Variable costs ($4.20 ⨯ 35,000) 147,000Contribution margin $ 49,000Fixed costs 44,800Operating income $ 4,2004. Margin of safety = $196,000 – $179,200 = $16,8005. Break-even in units = 44,800/($6.20 – $4.20) = 22,400 boxesNew operating income = $6.20(31,500) – $4.20(31,500) – $44,800= $195,300 – $132,300 – $44,800 = $18,200 Yes, operating income will increase by $14,000 ($18,200 – $4,200).1. Variable cost ratio = $126,000/$315,000 = 0.40Contribution margin ratio = $189,000/$315,000 = 0.602. $46,000 ⨯ 0.60 = $27,6003. Break-even revenue = $63,000/0.60 = $105,000Margin of safety = $315,000 – $105,000 = $210,0004. Revenue = ($63,000 + $90,000)/0.60= $255,0005. Before-tax income = $56,000/(1 – 0.30) = $80,000Note: Tax rate = $37,800/$126,000 = 0.30Revenue = ($63,000 + $80,000)/0.60 = $238,333Sales ............................................................................... $ 238,333 Less: Variable expenses ($238,333 ⨯ 0.40) ................. 95,333 Contribution margin ...................................................... $ 143,000 Less: Fixed expenses ................................................... 63,000 Income before income taxes ........................................ $ 80,000 Income taxes ($80,000 ⨯ 0.30) ...................................... 24,000 Net income ................................................................ $ 56,0001. Operating income = Revenue(1 – Variable cost ratio) – Fixed cost(0.20)Revenue = Revenue(1 – 0.40) – $24,000(0.20)Revenue = (0.60)Revenue – $24,000(0.40)Revenue = $24,000Revenue = $60,000Sales ............................................................................... $ 60,000Variable expenses ($60,000 ⨯ 0.40) .............................. 24,000Contribution margin ...................................................... $ 36,000Fixed expenses .............................................................. 24,000 Operating income ..................................................... $ 12,000 $12,000 = $60,000 ⨯ 20%2. If revenue of $60,000 produces a profit equal to 20 percent of sales and if theprice per unit is $10, then 6,000 units must be sold. Let X equal number of units, then:Operating income = (Price – Variable cost) – Fixed cost0.20($10)X = ($10 – $4)X – $24,000$2X = $6X – $24,000$4X = $24,000X = 6,000 buckets0.25($10)X = $6X – $24,000$2.50X = $6X – $24,000$3.50X = $24,000X = 6,857 bucketsSales (6,857 ⨯ $10) ......................................................... $68,570Variable expenses (6,857 ⨯ $4) ..................................... 27,428Contribution margin ...................................................... $41,142Fixed expenses .............................................................. 24,000 Operating income ..................................................... $17,142 $17,142* = 0.25 ⨯ $68,570 as claimed*Rounded down.Note: Some may prefer to round up to 6,858 units. If this is done, the operat-ing income will be slightly different due to rounding.16–14 Concluded3. Net income = 0.20Revenue/(1 – 0.40)= 0.3333Revenue0.3333Revenue = Revenue(1 – 0.40) – $24,0000.3333Revenue = 0.60Revenue – $24,0000.2667Revenue = $24,000Revenue = $89,98916–151. Company A: $100,000/$50,000 = 2Company B: $300,000/$50,000 = 62. Company BX = $50,000/(1 – 0.80) X = $250,000/(1 – 0.40)X = $50,000/0.20 X = $250,000/0.60X = $250,000 X = $416,667Company B must sell more than Company A to break even because it must cover $200,000 more in fixed costs (it is more highly leveraged).3. Company A: 2 ⨯ 50% = 100%Company B: 6 ⨯ 50% = 300%The percentage increase in profits for Company B is much higher than Com-pany A’s increase because Company B has a higher degree of oper ating leve-rage (i.e., it has a larger amount of fixed costs in proportion to variable costs as compared to Company A). Once fixed costs are covered, additional reve-nue must cover only variable costs, and 60 percent of Company B’s revenue above break-even is profit, whereas only 20 perce nt of Company A’s revenue above break-even is profit.1. Variable Units in PackageProduct Price* –Cost = CM ⨯Mix = CM Scientific $25 $12 $13 1 $13 Business 20 9 11 5 55 Total $68 *$500,000/20,000 = $25$2,000,000/100,000 = $20X = ($1,080,000 + $145,000)/$68X = $1,225,000/$68X = 18,015 packages18,015 scientific calculators (1 ⨯ 18,015)90,075 business calculators (5 ⨯ 18,015)2. Revenue = $1,225,000/0.544* = $2,251,838*($1,360,000/$2,500,000) = 0.5441. Sales mix is 2:1 (Twice as many videos are sold as equipment sets.)2. Variable SalesP roduct Price –Cost = CM ⨯Mix = Total CM Videos $12 $4 $8 2 $16 Equipment sets 15 6 9 1 9 Total $25 Break-even packages = $70,000/$25 = 2,800Break-even videos = 2 ⨯ 2,800 = 5,600Break-even equipment sets = 1 ⨯ 2,800 = 2,8003. Switzer CompanyIncome StatementFor Last YearSales .......................................................................................... $ 195,000Less: Variable costs ................................................................. 70,000Contribution margin ................................................................. $ 125,000Less: Fixed costs ..................................................................... 70,000 Operating income ................................................................ $ 55,000 Contribution margin ratio = $125,000/$195,000 = 0.641, or 64.1%Break-even sales revenue = $70,000/0.641 = $109,2044. Margin of safety = $195,000 – $109,204 = $85,7961. Sales mix is 2:1:4 (Twice as many videos will be sold as equipment sets, andfour times as many yoga mats will be sold as equipment sets.)2. Variable SalesP roduct Price –Cost = CM ⨯Mix = Total CM Videos $12 $ 4 $8 2 $16 Equipment sets 15 6 9 1 9 Yoga mats 18 13 5 4 20 Total $45 Break-even packages = $118,350/$45 = 2,630Break-even videos = 2 ⨯ 2,630 = 5,260Break-even equipment sets = 1 ⨯ 2,630 = 2,630Break-even yoga mats = 4 ⨯ 2,630 = 10,5203. Switzer CompanyIncome StatementFor the Coming YearSales .......................................................................................... $555,000Less: Variable costs ................................................................. 330,000Contribution margin ................................................................. $225,000Less: Fixed costs ..................................................................... 118,350 Operating income ................................................................ $106,650 Contribution margin ratio = $225,000/$555,000 = 0.4054, or 40.54%Break-even revenue = $118,350/0.4054 = $291,9344. Margin of safety = $555,000 – $291,934 = $263,0661. Contribution margin/unit = $410,000/100,000 = $4.10Contribution margin ratio = $410,000/$650,000 = 0.6308Break-even units = $295,200/$4.10 = 72,000 unitsBreak-even revenue = 72,000 ⨯ $6.50 = $468,000or= $295,200/0.6308 = $467,977**Difference due to rounding error in calculating the contribution margin ratio.2. The break-even point decreases:X = $295,200/(P – V)X = $295,200/($7.15 – $2.40)X = $295,200/$4.75X = 62,147 unitsRevenue = 62,147 ⨯ $7.15 = $444,3513. The break-even point increases:X = $295,200/($6.50 – $2.75)X = $295,200/$3.75X = 78,720 unitsRevenue = 78,720 ⨯ $6.50 = $511,68016–19 Concluded4. Predictions of increases or decreases in the break-even point can be madewithout computation for price changes or for variable cost changes. If both change, then the unit contribution margin must be known before and after to predict the effect on the break-even point. Simply giving the direction of the change for each individual component is not sufficient. For our example, the unit contribution changes from $4.10 to $4.40, so the break-even point in units will decrease.Break-even units = $295,200/($7.15 – $2.75) = 67,091Now, let’s look at the break-even point in revenues. We might expect that it, too, will decrease. However, that is not the case in this particular example.Here, the contribution margin ratio decreased from about 63 percent to just over 61.5 percent. As a result, the break-even point in revenues has gone up.B reak-even revenue = 67,091 $7.15 = $479,7015. The break-even point will increase because more units will need to be sold tocover the additional fixed expenses.Break-even units = $345,200/$4.10 = 84,195 unitsRevenue = $547,26816–201.Break-even point = 2,500 units; + line is total revenue and x line is total costs.2. a. Fixed costs increase by $5,000:Break-even point = 3,750 unitsb. Unit variable cost increases to $7:Break-even point = 3,333 unitsc. Unit selling price increases to $12:Break-even point = 1,667 unitsd. Both fixed costs and unit variable cost increase:Break-even point = 5,000 units3. Original data:-$10,000$0$10,000Break-even point = 2,500 unitsa. Fixed costs increase by $5,000:-$15,000$0$15,000Break-even point = 3,750 unitsb. Unit variable cost increases to $7:-$10,000$0$10,000Break-even point = 3,333 unitsc.-$10,000$0$10,000Break-even point = 1,667 unitsd. Both fixed costs and unit variable cost increase:-$15,000$0$15,000Break-even point = 5,000 units4. The first set of graphs is more informative since these graphs reveal howcosts change as sales volume changes.1. Unit contribution margin = $1,060,000/50,000 = $21.20Break-even units = $816,412/$21.20 = 38,510 unitsOperating income = 30,000 ⨯ $21.20 = $636,0002. CM ratio = $1,060,000/$2,500,000 = 0.424 or 42.4%Break-even point = $816,412/0.424 = $1,925,500Operating income = ($200,000 ⨯ 0.424) + $243,588 = $328,3883. Margin of safety = $2,500,000 – $1,925,500 = $574,5004. $1,060,000/$243,588 = 4.352 (operating leverage)4.352 ⨯ 20% = 0.87040.8704 ⨯ $243,588 = $212,019New operating income level = $212,019 + $243,588 = $455,6075. Let X = Units0.10($50)X = $50.00X – $28.80X – $816,412$5X = $21.20X – $816,412$16.20X = $816,412X = 50,396 units6. Before-tax income = $180,000/(1 – 0.40) = $300,000X = ($816,412 + $300,000)/$21.20 = 52,661 units1. Variable Sales PackageP roduct Price –Cost = CM ⨯Mix = CM Vases $40 $30 $10 2 $20 Figurines 70 42 28 1 28 Total $48 Break-even packages = $30,000/$48 = 625Break-even vases = 2 ⨯ 625 = 1,250Break-even figurines = 6252. The new sales mix is 3 vases to 2 figurines.Variable Sales Package P roduct Price –Cost = CM ⨯Mix = CM Vases $40 $30 $10 3 $30 Figurines 70 42 28 2 56 Total $86 Break-even packages = $35,260/$86 = 410Break-even vases = 3 ⨯ 410 = 1,230Break-even figurines = 2 ⨯ 410 = 82016–231. d2. c3. a4. d5. e6. b7. cPROBLEMS16–241. Unit contribution margin = $825,000/110,000 = $7.50Break-even point = $495,000/$7.50 = 66,000 unitsCM ratio = $7.50/$25 = 0.30Break-even point = $495,000/0.30 = $1,650,000or= $25 ⨯ 66,000 = $1,650,0002. Increased CM ($400,000 ⨯ 0.30) $ 120,000Less: Increased advertising expense 40,000Increased operating income $ 80,0003. $315,000 ⨯ 0.30 = $94,5004. Before-tax income = $360,000/(1 – 0.40) = $600,000Units = ($495,000 + $600,000)/$7.50= 146,0005. Margin of safety = $2,750,000 – $1,650,000 = $1,100,000or= 110,000 units – 66,000 units = 44,000 units6. $825,000/$330,000 = 2.5 (operating leverage)20% ⨯ 2.5 = 50% (profit increase)16–251. Sales mix:Squares: $300,000/$30 = 10,000 unitsCircles: $2,500,000/$50 = 50,000 unitsSales Total Product P –V* = P – V ⨯ Mix = CM Squares $30 $10 $20 1 $ 20 Circles 50 10 40 5 200 Package $220 *$100,000/10,000 = $10$500,000/50,000 = $10Break-even packages = $1,628,000/$220 = 7,400 packagesBreak-even squares = 7,400 ⨯ 1 = 7,400Break-even circles = 7,400 ⨯ 5 = 37,0002. Contribution margin ratio = $2,200,000/$2,800,000 = 0.78570.10Revenue = 0.7857Revenue – $1,628,0000.6857Revenue = $1,628,000Revenue = $2,374,2163. New mix:Sales Total Product P –V = P – V ⨯ Mix = CM Squares $30 $10 $20 3 $ 60 Circles 50 10 40 5 200 Package $260 Break-even packages = $1,628,000/$260 = 6,262 packagesBreak-even squares = 6,262 ⨯ 3 = 18,786Break-even circles = 6,262 ⨯ 5 = 31,310CM ratio = $260/$340* = 0.7647*(3)($30) + (5)($50) = $340 revenue per package0.10Revenue = 0.7647Revenue – $1,628,0000.6647Revenue = $1,628,000Revenue = $2,449,2254. Increase in CM for squares (15,000 ⨯ $20) $ 300,000Decrease in CM for circles (5,000 ⨯ $40) (200,000)Net increase in total contribution margin $ 100,000Less: Additional fixed expenses 45,000Increase in operating income $ 55,000Gosnell would gain $55,000 by increasing advertising for the squares. This isa good strategy.16–261. Currently:Sales (830,000 ⨯ $0.36) $ 298,800Variable expenses 224,100Contribution margin $ 74,700Fixed expenses 54,000Operating income $ 20,700New contribution margin = 1.5 ⨯ $74,700 = $112,050$112,050 – promotional spending – $54,000 = 1.5 ⨯ $20,700Promotional spending = $27,0002. Here are two ways to calculate the answer to this question:a. The per-unit contribution margin needs to be the same:Let P* represent the new price and V* the new variable cost.(P – V) = (P* – V*)$0.36 – $0.27 = P* – $0.30$0.09 = P* – $0.30P* = $0.39b. Old break-even point = $54,000/($0.36 – $0.27) = 600,000New break-even point = $54,000/(P* – $0.30) = 600,000P* = $0.39The selling price should be increased by $0.03.3. Projected contribution margin (700,000 ⨯ $0.13) $91,000Present contribution margin 74,700Increase in operating income $16,300The decision was good because operating income increased by $16,300.(New quantity ⨯ $0.13) – $54,000 = $20,700New quantity = 574,615Selling 574,615 units at the new price will maintain profit at $20,700.16–271. P –V = P – V ⨯Mix = TotalResidential $540.00a$221.64c$318.36 2 $636.72 Commercial 160.00b124.52c35.48 1 35.48 Package $672.20 a$13.50 ⨯ 10 ⨯ 4b$40 ⨯ 4c Cost per acre for four applicationsCommercialChemicals $ 70.00 $ 70.00 [$40 + (3 ⨯ $10)] Labor* 80.00 18.00Operating expenses** 55.12 20.00Supplies** 16.52 16.52Total $ 221.64 $ 124.52*10/3 ⨯ $6.00 ⨯ 4; 3/4 ⨯ $6.00 ⨯ 4**The per-acre amount ⨯ 4 applicationsX = F/(P – V)= $39,708/$672.20 = 59* packagesResidential: 2 ⨯ 59 = 118 acresCommercial: 1 ⨯ 59 = 59 acresAverage number of residential customers = 118/0.10 = 1,180*Rounded2. Hours needed to service break-even volume (in packages):Residential: 10/3 ⨯ 4 ⨯ 2 = 26.67* hoursCommercial: 3/4 ⨯ 4 ⨯ 1 = 3.00 hours29.67 hours per packageTotal hours required = 29.67 ⨯ 59 = 1,751 hoursHours per employee = 8 ⨯ 140 = 1,120Employees needed = 1,751/1,120 = 1.6 laborersOne employee is not sufficient.Volume/Employee = 1,120/29.67 = 38 packages. Thus, if volume exceeds 38 composite units (76 residential and 38 commercial), a second laborer is needed (at least part time).*RoundedNote: Adding another employee could affect the costs used in the initial anal-ysis; for example: (1) another truck might be added (increasing fixed costs and the break-even point; (2) a two-man crew might be used (increasing variable costs); (3) the new employee might work evenings/weekends (no change in either fixed or variable costs). CVP used for planning is often an iterative process—the original solution may raise problems that may call for a recal-culation, altering plans further.3. The mix is redefined to be 1.2:0.8:1.0.P roduct P –V = P – V ⨯Mix = Total CM Res.-1 $135.00 $ 77.91* $ 57.09 1.2 $ 68.51 Res.-4 540.00 221.64 318.36 0.8 254.69 Comm. 160.00 124.52 35.48 1.0 35.48 Package $ 358.68 *Variable cost for one-time residential application:Chemicals $40.00Labor 20.00Operating expenses 13.78Supplies 4.13TotalX = F/(P – V) = $39,708/$358.68 = 111 packagesResidential (one application): 1.2 ⨯ 111 = 133 acresResidential (four applications): 0.8 ⨯ 111 = 89 acresCommercial: 1 ⨯ 111 = 111 acres1. Contribution margin ratio = $487,548/$840,600 = 0.582. Revenue = $250,000/0.58 = $431,0343. Operating income = CMR ⨯ Revenue – Total fixed cost0.08R/(1 – 0.34) = 0.58R – $250,0000.1212R = 0.58R – $250,0000.4588R = $250,000R = $544,9004. $840,600 ⨯ 110% = $924,660$353,052 ⨯ 110% = 388,357$536,303CMR = $536,303/$924,660 = 0.58The contribution margin ratio remains at 0.58.5. Additional variable expense = $840,600 ⨯ 0.03 = $25,218New contribution margin = $487,548 – $25,218 = $462,330New CM ratio = $462,330/$840,600 = 0.55Break-even point = $250,000/0.55 = $454,545The effect is to increase the break-even point.6. Present contribution margin $ 487,548Projected contribution margin ($920,600 ⨯ 0.55) 506,330Increase in contribution margin/profit $ 18,782Fitzgibbons should pay the commission because profit would increase by $18,782.1. Let X be a package of three Grade I cabinets and seven Grade II cabinets.Then:0.3X($3,400) + 0.7X($1,600) = $1,600,000X = 748 packagesGrade I: 0.3 ⨯ 748 = 224 unitsGrade II: 0.7 ⨯ 748 = 524 units2. P roduct P –V = P – V ⨯Mix = Total CMGrade I $3,400 $2,686 $714 3 $2,142 Grade II 1,600 1,328 272 7 1,904 Package $4,046 Direct fixed costs—Grade I $ 95,000Direct fixed costs—Grade II 95,000Common fixed costs 35,000Total fixed costs $ 225,000$225,000/$4,046 = 56 packagesGrade I: 3 ⨯ 56 = 168; Grade II: 7 ⨯ 56 = 3923. P roduct P –V = P – V ⨯Mix = Total CMGrade I $3,400 $2,444 $956 3 $2,868 Grade II 1,600 1,208 392 7 2,744 Package $5,612 P ackage CM = 3($3,400) + 7($1,600)P ackage CM = $21,400$21,400X = $1,600,000 – $600,000X = 47 packages remaining141 Grade I (3 ⨯ 47) and 329 Grade II (7 ⨯ 47)Additional contribution margin:141($956 – $714) + 329($392 – $272) $73,602Increase in fixed costs 44,000Increase in operating income $29,602Break-even: ($225,000 + $44,000)/$5,612 = 48 packages144 Grade I (3 ⨯ 48) and 336 Grade II (7 ⨯ 48)If the new break-even point is interpreted as a revised break-even for 2004, then total fixed costs must be reduced by the contribution margin already earned (through the first five months) to obtain the units that must be sold for the last seven months. These units would then be added to those sold during the first five months:CM earned = $600,000 – (83* ⨯ $2,686) – (195* ⨯ $1,328) = $118,102*224 – 141 = 83; 524 – 329 = 195X = ($225,000 + $44,000 – $118,102)/$5,612 = 27 packagesFrom the first five months, 28 packages were sold (83/3 or 195/7). Thus, the revised break-even point is 55 packages (27 + 28)—in units, 165 of Grade I and 385 of Grade II.。
Cost ManagementConcepts and CostBehaviorQUESTIONS2-1Cost information is used in deciding whether to introduce a new product or discontinue an existing product (given the price and cost structure), assessing the efficiency of a particular operation, and budgeting. Cost information is also used for the valuation of inventory and cost of goods sold.2-2Different types of cost information are needed for different managerial purposes and decisions. For example, product cost information is used for product mix and pricing decisions. The cost of serving customer segments will include the cost of activities that support customer service. For management control purposes, an organization may compare actual costs to budgeted (standard) costs.2-3 A cost object is something for which it is desired to compute a cost. Examples of cost objects include a product, a product line, or an organizational unit such as the call center that responds to customers’ phone calls.2-4 A direct cost is a cost of a resource or activity that is acquired for or used by a single cost object and is easily traced to the cost object, such as a product manufactured or service rendered. An indirect cost is the cost of a resource that was acquired to be used by more than one cost object. Indirect costs cannot be easily identified with individual cost objects.2-5Variable costs are the costs of variable resources, whose costs are proportional to the amount of the resource used. Fixed costs are the costs of capacity-related resources, which are acquired and paid for in advance of when the work is done. Fixed costs depend on how much of the resource (capacity) is acquired, rather than on how much is used. Depreciation on machinery is an example of a fixed cost.– 29 –Atkinson, Solutions Manual t/a Management Accounting, 5E2-6Variable costs can be direct or indirect. For example, suppose the cost object isa passenger on an airplane. The cost of complimentary refreshments varies inproportion to the number of passengers, and is a direct variable cost. The cost of fuel varies with the number of flights (and perhaps to a small extent with respect the total weight of the passengers and their luggage, which is related to the number of passengers). The cost of the fuel that varies with the number of flights is an indirect variable cost.In some cases, direct variable costs may be treated as indirect costs if it is inconvenient to account for them as direct costs and the cost is only a small part of total costs. Costs for materials such as glue or thread, for example, are variable costs with respect to products but are generally a very small part of product cost. These costs are consequently often labeled as indirect materials and included with manufacturing overhead.2-7Fixed costs can be direct or indirect. For example, in the case of a multi-product firm that acquires a special piece of equipment for the exclusive use of one product, that equipment would be fixed and direct to the product that uses it. If the equipment will be used to produce multiple products, its cost will be indirect.2-8For external reporting, costs in a manufacturing firm are classified as product costs or period costs. The portion of product costs assigned to the products sold in a period appears as cost of goods sold expense in that period’s income statement; the remaining portion of product costs is assigned to the products in inventory and appears as an asset in the balance sheet. Period costs are expensed in the period incurred.2-9Costs represent the monetary value of goods and services expended to obtain current or future benefits. Expenses reported in the income statement are the costs of assets that the financial accountant deems have been used up when goods or services are sold (e.g., cost of goods sold), or period costs, whose benefits are not easily matched with products or services sold in a specific period (e.g., advertising).2-10The two principal categories of manufacturing costs are direct manufacturing costs (traced or assigned to the products that created those costs) and indirect manufacturing costs (allocated to products).– 30 –Chapter 2: Cost Management Concepts and Cost Behavior 2-11Only the manufacturing costs are included in the valuation of finished goods inventory. Therefore, traditional cost accounting systems, designed for valuing inventory, analyze these costs in greater detail in order to assign them to individual products.2-12Inside the organization, costs serve two broad purposes: planning and evaluation. Cost calculations can be tailored to a specific purpose. For example, for planning purposes, cost might serve as a reference point for determining the selling price of a prospective product, or might be used in a budgeting model to forecast costs under different levels of production and selling activities. Evaluation purposes occur, for example, when comparing actual costs to budgeted (standard) costs or when judging whether a process is efficient compared with the costs of similar internal or external processes.2-13Contribution margin per unit is the difference between revenue per unit and variable cost per unit. The contribution margin is an important component of the equation to determine the breakeven point. It is also used to help evaluate whether or not an investment in a business venture can be profitable.2-14In evaluating whether a business venture will be profitable, the breakeven point is the volume at which the profit equals zero, that is, revenues equal costs.2-15The most accurate and complete cost system possible may be inordinately costly to implement. Although it is often difficult to compute the value of usinga particular cost system, in principle the benefit should outweigh the cost of thesystem.2-16An opportunity cost is the sacrifice one makes when using a resource for one purpose instead of another.2-17Short-run is the period over which a decision-maker cannot adjust capacity.Short-run costs are variable costs, which vary in proportion to production.Long-run costs are the sum of variable and fixed costs associated with a cost object. Long-run costs are important for product planning purposes because they are an estimate of the cost of the all the resources consumed to make the product.2-18In the early part of the twentieth century, when formal cost systems were first installed at many businesses, direct labor comprised a large proportion of the total manufacturing cost. In today’s industrial environment, direct labor comprises a much smaller portion of the total costs, while the share of indirect costs has grown considerably. As a result, cost accounting systems must now– 31 –Atkinson, Solutions Manual t/a Management Accounting, 5Eanalyze indirect costs in greater detail to reflect their true behavior. Cost accounting systems that use volume measures to allocate indirect costs may be very inaccurate.2-19The five categories of production-related activities and their descriptions are listed below.1. Unit-related activities relate directly to the number of units produced(e.g., direct labor costs).2. Batch-related activities relate to the number of batches produced ratherthan the number of units produced (e.g., machine setups).3.Product-sustaining activities are performed to support the production andsale of individual products (e.g., product design).4.Customer-sustaining activities enable the company to sell to anindividual customer but are independent of the volume and mix of theproducts and services sold and delivered to the customer (e.g., technicalsupport provided to individual customers).5.Business-sustaining activities are required to support the upkeep of theplant or the basic functioning of the plant or the business (e.g., rent, plantmaintenance, a nd CEO’s salary).2-20Customer-related costs have attracted increasing attention in recent years because they are large and growing in many organizations. Furthermore, the costs can vary widely across different customers or customer segments.Organizations may use customer cost information to decide which customers or customer groups to retain or de-emphasize, or to decide on differential service fees to cover costs of services.EXERCISES2-21(a) Manufacturing (g) Nonmanufacturing(b) Nonmanufacturing (h) Nonmanufacturing(c)Nonmanufacturing (i) Manufacturing(d)Nonmanufacturing (j) Nonmanufacturing(e)Manufacturing (k) Nonmanufacturing(f) Nonmanufacturing (l) Nonmanufacturing– 32 –Chapter 2: Cost Management Concepts and Cost Behavior 2-22(a) Indirect (g) Indirect(b) Direct (h) Indirect(c)Direct (i) Direct(d)Indirect (j) Indirect(e)Direct (k) Direct(f) Indirect (l) Indirect2-23(a) Unit-related (g) Product-sustaining(b) Batch-related (h) Business-sustaining(c)Product-sustaining (i) Batch-related(d)Business-sustaining (j) Batch-related(e)Unit-related (k) Business-sustaining(f) Batch-related (l) Product-sustaining2-24(a) Unit- or batch-related (g) Business-sustaining(b) Batch-related (h) Product-sustaining(c)Product-sustaining (i) Business-sustaining(d)Business-sustaining (j) Business-sustaining(e)Batch-related (k) Business-sustaining(f)Unit-related (l) Unit-related2-25(a) Fixed(b)Variable(c)Variable(d)Fixed(e)Variable(f)Fixed(g)Fixed or variable (if number of billing clerks can vary in the short run)(h)Variable(i)Variable(j)Variable(k)Fixed– 33 –Atkinson, Solutions Manual t/a Management Accounting, 5E2-26(a) Variable(b)Fixed or variable (if number of production workers can vary in the shortrun)(c)Fixed(d)Variable(e)Fixed(f)Fixed(g)Variable(h)Variable(i)Fixed(j)Fixed2-27(a) Let P= charges per patient-day.(2,300 ⨯P) - (45.70 ⨯ 2,300) - 91,000) = 0P = $196,110 ) 2,300 = $85.27(b) Let X= the average number of patient days per month necessary togenerate a target profit of $45,000 per monthRevenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$100X– $45.70X– $91,000 = $45,000$54.30X = $91,000 + $45,000 = $136,000X = 2,505 patient days (rounded)2-28(a) Contribution margin per unit = $30 – $19.50 = $10.50(b) Let X = the number of units sold to break evenSales revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$30X– $19.50X– $147,000 = $0$10.50X– $147,000 = 0X = 14,000 units– 34 –Chapter 2: Cost Management Concepts and Cost Behavior (c) Let X = the number of units sold to generate revenue necessary to earn pretaxincome of 20% of revenueSales revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$30X– $19.50X– $147,000 = 0.2 × $30X$10.50X– $147,000 = $6XX = 32,667 units (rounded)Desired revenue = $30X = $30 × 32,667 = $980,010(d) Let Y = necessary increase in sales unitsIncremental sales revenue –Incremental variable costs –Incremental fixed costs = $0$30Y– $19.50Y– $38,500 = $0Y = 3,667 units (rounded)2-29(a)Sales $1,260,000– Cost of Goods Sold (Expense) $640,500Gross Margin or Gross Profit $619,500Selling & Admin (or GS&A or Operating expenses) $410,000 Net income (Operating income) $209,500(b) Revenue – Variable costs – Fixed costs = Profit$1,260,000 – $570,000 – $480,500 = $209,500(c)Let Y = sales dollars necessary for a before-tax target profit of $250,000The contribution margin ratio = ($1,260,000 – $570,000)/$1,260,000 =0.547619 (rounded).Using equation (2.10),Y = (Target Profit + Fixed Cost)/Contribution Margin RatioY = ($250,000 + $480,500)/0.547619Y = $1,333,956.60(d)Let Y = sales dollars necessary to break evenUsing equation (2.11),Y = Fixed Cost/Contribution Margin RatioY = $480,500/0.547619Y = $877,434.85– 35 –Atkinson, Solutions Manual t/a Management Accounting, 5E– 36 –2-30 (a)Alligators DolphinsTotalUnits sold140,00060,000200,000Sales mix percentage*.7.3Weighted average**Weighted average**Sum of weighted averagesSales price per unit$20.00$14.00$25.00$7.50 $21.50Variable costs per unit$ 8.00$ 5.60$10.00 $3.00$ 8.60Unit CM$12.00$ 8.40 $15.00$4.50$12.90* 140,000/(140,000 + 60,000) = .7; 60,000/(140,000 + 60,000) = .3 ** $20 × .7 = $14; $8 × .7 = $5.60; $25 × .3 = $7.50; $10 × .3 = $3Breakeven units = $1,290,000/$12.90 = 100,000 units. Of these, 100,000 × .7 = 70,000 will be alligators and 100,000 × .3 = 30,000 will be dolphins.(b) AlligatorsDolphinsTotalUnits sold60,000140,000200,000Sales mix percentage*.3.7Weighted average**Weighted average** Sum of weighted averagesSales price per unit$20.00$6.00$25.00$17.50$23.50Variable costs per unit$ 8.00$2.40$10.00$ 7.00 $ 9.40Unit CM$12.00$3.60$15.00 $10.50$14.10* 60,000/(140,000 + 60,000) = .3; 140,000/(140,000 + 60,000) = .7** $20 × .3 = $6; $8 × .3 = $2.40; $25 × .7 = $17.50; $10 × .7 = $7Chapter 2: Cost Management Concepts and Cost Behavior Breakeven units = $1,290,000/$14.10 = 91,489.36, which we round up to91,490 units. Of these, 91,490 × .3 = 27,447 will be alligators and 91,490× .7 = 64,043 will be dolphins.(c) In part (b), the sales mix percentage for the higher-CM product(dolphins) is greater than in part (a). Consequently, fewer total units arerequired to break even (91,490 in part (b) versus 100,000 in part (a)).2-31(a) Healthy Hearth has sufficient excess capacity to handle the one-time (short-run) order for 1,000 meals next month. Consequently, the analysisfocuses on incremental revenues and costs associated with the order:Incremental revenue per meal $3.50Incremental cost per meal 3.00Incremental contribution margin per meal $0.50Number of meals × 1,000Increase in contribution margin and operating income $ 500Healthy Hearth will be better off by $500 with this one-time order. Notethat total fixed costs remain unchanged, so it is sufficient to evaluate thechange in the contribution margin. If the order had been long-term,Healthy Hearth would need to evaluate whether the price provides thedesired profitability considering the fixed costs and whether filling thegovernment order might require giving up higher-priced regular sales.(b) Healthy Hearth has insufficient excess capacity to handle the one-timeorder for 1,000 meals next month, and must give up regular sales of 500meals at $4.50 each, resulting in an opportunity cost.Incremental contribution margin from one-time orderIncremental revenue per meal $3.50Incremental cost per meal 3.00Incremental contribution margin per meal $0.50Number of meals 1,000Increase in operating income from one-time order $ 500Opportunity costLost contribution margin on regular sales: 500 × ($4.50 – $3.00) $(750)Change in contribution margin and operating income $(250)– 37 –Atkinson, Solutions Manual t/a Management Accounting, 5ENow, Healthy Hearth will be worse off by $250 with this one-time order.Again, total fixed costs remain unchanged, so it is sufficient to evaluatethe change in the contribution margin.2-32(a) Customer 1 Customer 2 Sales revenue $1,200 $1,200Cost of goods sold $750 $750Support costs: 30% of revenue 360 1,110 360 1,110Customer margin $ 90 $ 90(b) Customer 1 Customer 2Sales revenue $1,200 $1,200Cost of goods sold $750 $750Support costs: $35 per order 70 820 420 1,170Customer margin $ 380 $ 30(c) The current system does not reflect the different costs of servingcustomers with very different ordering patterns. Although the revenueand cost of goods sold are the same for both customers, customer 1orders only twice per year and customer 2 orders 12 times per year.Because customer support costs are assigned on the basis of salesrevenue, the reported support costs are the same for both customers, andboth customers appear equally profitable. The proposed system moreaccurately assigns customer support costs to each customer based on thenumber of orders, showing the customer 1 is more profitable thancustomer 2 under the current pricing and sales volume.– 38 –Chapter 2: Cost Management Concepts and Cost Behavior PROBLEMS2-33(a)Sales $3,500,000Cost of goods sold a1,900,000Gross margin 1,600,000Selling and administrative expenses b620,000Net income before taxes, etc. $980,000a Cost of goods sold:Carpenter labor to make shelves $600,000Wood to make the shelves 450,000Depreciation on carpentry equipment 50,000Miscellaneous fixed manufacturing overhead (support) 150,000Rent for the building where the shelves are made 300,000Miscellaneous variable manufacturing overhead (support) 350,000$1,900,000b Selling and administrative expenses:Sales staff salaries $80,000Office and showroom rental expenses 150,000Advertising 200,000Sales commissions based on number of units sold 180,000Depreciation for office equipment 10,000$620,000(b)The following items are variable costs:Carpenter labor to make shelves $600,000Wood to make the shelves 450,000Sales commissions based on number of units sold 180,000Miscellaneous variable manufacturing overhead (support) 350,000Total variable costs $1,580,000Atkinson, Solutions Manual t/a Management Accounting, 5EThe variable costs per unit are $1,580,000/50,000 = $31.60. The followingitems are fixed costs:Sales staff salaries $80,000Office and showroom rental expenses 150,000Depreciation on carpentry equipment 50,000Advertising 200,000Miscellaneous fixed manufacturing overhead (support) 150,000Rent for the building where the shelves are made 300,000Depreciation for office equipment 10,000Total fixed costs $940,000 Let X = the number of units sold to earn a pre-tax profit of $500,000Revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$70X– $31.60X– $940,000 = $500,000X = 37,500 units2-34 (a) Expected profit = 0.4($170,000 – 150,000) + 0.6($170,000 – 200,000) = $8,000 – 18,000 = – $10,000. Therefore, JF will not undertake the newproject and will earn $0.(b) If JF knows what the cost will be, it will choose the following decisions:If the cost is $150,000, then JF will undertake the project and earn($170,000 – 150,000) = $20,000.If the cost is $200,000, then JF will not undertake the project and earn$0, which is greater than ($170,000 – 200,000) = – $30,000.Therefore, JF’s expected profit if the consultant is hired is 0.4($20,000)+ 0.6($0) = $8,000. Therefore, JF is willing to pay the differencebetween the expected profit after hiring the consultant and the expectedprofit without hiring the consultant, or $8,000 –$0 = $8,000.Chapter 2: Cost Management Concepts and Cost Behavior 2-35(a) Direct material cost:∙Cost of fabric used in dresses $60,000Direct labor cost:∙Wages of dressmakers $5,000∙Wages of dress designers 4,000 9,000Manufacturing support:∙Wages of the employee who repairs the shop’spattern and sewing machines 2,000∙Cost of electricity used in the PatternDepartment 200∙Depreciation on pattern machines and sewingMachines 10,000∙Cost of insurance for the production employees(could instead be included under direct laborcost) 2,000∙Rent for the building (6,000 ⨯ 1/2) 3,000 17,200Selling costs:∙Wages of sales personnel 1,000∙Rent for the building (6,000 ⨯ 1/4) 1,500 2,500Marketing costs:∙Cost of new sign in front of retail shop 400∙Cost of advertisements in local media 800∙Cost of hiring a plane and a pilot to advertise 1,400 2,600R & D costs:∙Wages of designers who experiment with newfabrics and dress designs 3,000 General & administrative costs:∙Salary of the owner’s assistant1,200∙Rent for the building (6,000 ⨯ 1/4) 1,500 2,700Total costs $97,000Atkinson, Solutions Manual t/a Management Accounting, 5E(b) Classifications in this question may depend on the interpretation of theproduction and selling processes, and assumptions about how variouscosts are related to activities.Unit-related cost:∙Cost of fabric used in dresses $60,000∙Wages of dressmakers 5,000∙Wages of dress designers 4,000∙Depreciation on pattern machines and sewingmachines (depreciation on pattern machinescould be included in product-sustainingcost) 10,000 79,000 Batch-related cost:∙Wages of sales personnel (could also beclassified as unit-related if customersgenerally purchase only one dress at a time) 1,000 Product-sustaining cost:∙Cost of electricity used in the PatternDepartment 200∙Wages of designers who experiment withnew fabrics and dress designs 3,000 3,200 Business-sustaining cost:∙Wages of the employee who repairs thepattern and sewing machines 2,000∙Salary of the owner’s assistant1,200∙Cost of new sign in front of retail shop 400∙Cost of advertisements in local media 800∙Cost of hiring a plane and a pilot to advertise 1,400∙Cost of insurance for the productionEmployees 2,000∙Rent for the building 6,000 13,800Total costs $97,000Chapter 2: Cost Management Concepts and Cost Behavior 2-36(a) The number of miles driven is an important activity measure in estimating the cost of driving. In comparing the cost of driving to workor taking public transportation, Shannon may also want to consider thecost of parking at work. The cost of parking may vary with the numberof days at work or may be a flat rate per month.(b)Incremental costs of driving include gas, oil, maintenance, and tireexpenditures. Costs associated with driving also include toll costs andparking fees.(c)Fixed costs include taxes, depreciation of the vehicle, car registration,and insurance.(d)For a two-week vacation by car, two likely activity measures are numberof miles driven and number of days (for lodging and meals).2-37(a) Estimated support costs based on direct labor cost:May: $28,500 (= $9.50 × 3,000)June: $39,900 (= $9.50 × 4,200)Estimated support costs based on the new equation:May: $42,000 (= $3,000 + [$200 × 50] + [$300 × 30] + [$20 × 1,000])June: $54,200 (= $4,200 + [$200 × 70] + [$300 × 40] + [$20 × 1,200])(b) The two sets of estimates differ because the old equation omits severalimportant cost drivers that are not proportional to direct labor cost.(c) Neither method recognizes that some support costs may be committedand will not vary unless their resource capacity is exceeded. This willlead to discrepancies with both methods. The second equation, however,is preferred because it recognizes important cost drivers.Atkinson, Solutions Manual t/a Management Accounting, 5E2-38(a) Direct materialcost Meat, cheese, bread, lettuce and otheringredients. $ 8,100Direct labor cost Cooks’ wages.5,000Indirect support costs Utilities, depreciation on cookingequipment, paper supplies, rent, andjanitor’s wag es.2,200Selling support Servers’ wages1,500Marketing costs Advertisement in local newspaper 300Total cost $17,100 * A portion of utilities, janitor’s wages, and rent could be allocated to administrative support, if we were given a suitable allocation basis.(b) Unit-relatedcost Meat, cheese, bread, lettuce and other ingredients, cooks’ wages,depreciation on equipment, andpaper supplies. $13,600Batch-related cost Servers’ wages1,500Business-sustaining cost Janitor’s wages, utilities, rent, andadvertisement in local newspaper. 2,000Total cost $17,100 2-39(a) Costs that vary with number of passengers:Meals and refreshments = $5Let X= number of passengers needed to break even each weekTotal revenue per week – costs per passenger per week – costs per flightper week – fixed costs per week = profit per week($200 ⨯X⨯ 70) – ($5 ⨯X⨯ 70) – ($5,000 ⨯ 70) – $400,000 = $0$13,650X = $750,000X= $750,000 ÷ $13,650 = 54.95 (i.e., 55 passengers per flight)(b) Let N= number of flights to earn a profit of $500,000 per weekNumber of passengers per flight = 60% ⨯ 150 = 90($200 ⨯ 90 ⨯N)– ($5 ⨯ 90 ⨯N)– ($5,000 ⨯N– $400,000) = $500,000N= 71.71 (i.e., 72 flights)Chapter 2: Cost Management Concepts and Cost Behavior (c)Fuel costs are fixed once the flights are scheduled, but these costs varywith the number of flights.(d)In this case, there is no opportunity cost to the airline because the seatwould otherwise go empty. The variable cost for the additional passenger is $5 for the meals and refreshments and perhaps a small amount of additional fuel cost.2-40(a) Johnson Co. breakeven point in number of ridesCapacity-related costs Unit contribution marginrides===$300,$6,00050000Smith Co. breakeven point in number of ridesCapacity-related costs Unit contribution marginrides===$1,,$15,500000100000(b) Let x be the number of rides.Johnson Co.’s profit function:πJ x x x=--=-$30,$6,24300000300000 Smit h Co.’s profit function:πS x x x=--=-$30,,$15,,1515000001500000Atkinson, Solutions Manual t/a Management Accounting, 5ENumber of ridesProfitProfit-Volume ChartπJπS 133,333100,00050,000$0($300,000)($1,500,000)Loss(c)We cannot say which firm’s cost structure is more profitable as profits depend on sales volume. If sales drop to below 133,333 rides, Johnson Company’s cost structure leads to more profits. Howe ver, if sales remain above 133,334 rides, then Smith Company’s cost structure leads to more profits.(d)The contribution margin generated must first cover the fixed costs and then the balance remaining after the fixed costs are fully covered goes toward profits. If the contribution margin is not sufficient to cover the fixed costs, then a loss occurs for the period. Once the breakeven point has been reached, profit will increase by the unit contribution margin for each additional unit sold. Here, Smith Company is more risky because it has higher fixed costs to cover and a higher unit contribution margin, which makes its profits more sensitive to decreases in the sales activity level.2-41 (a) Contribution margin per unit:Selling price$250Less variable costs:Variable production costs$100Variable selling and distribution support 20120Contribution margin per unit$130Chapter 2: Cost Management Concepts and Cost Behavior(b) Let X = the sales volume at which the profit on sales is 10%Profit =250X X X X XX X --+()=⨯()-===12020000062,50001250130262,50025105262,5002,500 units.,.(c)(1) Single-shift operations 04,400≤≤()X : Selling price $200 Variable costs120 Contribution margin per unit $80Fixed costs =$200,000 + $62,500 + $17,500 = $280,000Breakeven point = $280,000 ÷ $80 = 3,500 unitsnote: 0≤≤()35004400,,Atkinson, Solutions Manual t/a Management Accounting, 5E(2) Two-shift operations 4,4008800≤≤()X ,:Selling price $200 Variable costs120Contribution margin per unit$80Fixed costs =$310,000 + $62,500 + $17,500 = $390,000 Breakeven point = $390,000 ÷ $80 = 4,875 units()800,8875,4,4004 :note ≤≤(d)Profit to sales ratio in September:=⨯-⨯=-=13030002625002503000390000262500750000017,,,,,,.(1) Single-shift operations 04,400≤≤()X2001202800000172008028000034462800006087X X XX XX X --=⨯-===,.,,, units(Not acceptable because X cannot be more than 4,400 units with single-shift operations)(2) Two-shift operations 4,4008800≤≤()X , 2001203900000172008039000034463900008478 unitsX X XX XX X --=⨯-===,.,,,()800,8478,8,4004 :note ≤≤。
