Đang tải... (xem toàn văn)
KẾ TOÁN 26E giúp nâng cao tư duy của học sinh với nội dung giải quyết từng giai đoạn của quá trình học tập từ động lực đến thành thạo. Hệ thống tích hợp này thúc đẩy sinh viên học tập, cung cấp các cơ hội thực hành để chuẩn bị tốt hơn cho các kỳ thi và giúp sinh viên đạt được thành thạo với các công cụ để giúp họ tạo kết nối và nhìn thấy bức tranh lớn. Hệ thống học tập hoàn chỉnh được xây dựng xung quanh cách sinh viên sử dụng sách giáo khoa và tài nguyên trực tuyến để học, nghiên cứu và hoàn thành bài tập về nhà, cho phép họ đạt được thành công cuối cùng trong khóa học này. Nội dung mới bao gồm Triển lãm động do tác giả viết cho phép sinh viên thấy các kết nối và mối quan hệ hơn bao giờ hết Triển lãm động cho phép sinh viên thay đổi các biến trong một kịch bản và xem cách thay đổi gợn qua hệ thống kế toán, giúp sinh viên hiểu các khái niệm liên quan đến nhau như thế nào. Ngoài nhiều tài sản kỹ thuật số mới được tạo cho phiên bản này, nội dung sách giáo khoa cũng đã được sửa đổi để bao gồm tiêu chuẩn ghi nhận doanh thu mới và nhấn mạnh hơn vào các công ty dịch vụ trong các chương kế toán quản lý.
CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Warren Reeve Duchac ©2016 human/iStock/360/Getty Images Accounting 26e Standards (slide of 2) • • Standards are performance goals Manufacturing companies normally use standard cost for each of the three following product costs: o o o Direct materials Direct labor Factory overhead â2016 Standards (slide of 2) Accounting systems that use standards for product costs are called standard cost systems o Standard cost systems enable management to determine the following: How much a product should cost (standard cost) How much it does cost (actual cost) • When actual costs are compared with standard costs, the exceptions or variances are reported o This reporting by the principle of exceptions allows management to focus on correcting the cost variances ©2016 Setting Standards • The standard-setting process normally requires the joint efforts of accountants, engineers, and other management personnel o o The accountant converts the results of judgments and process studies into dollars and cents Engineers with the aid of operation managers identify the materials, labor, and machine requirements needed to produce the product â2016 Types of Standards Ideal standards, or theoretical standards, are standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage Currently attainable standards, sometimes called normal standards, are standards that can be attained with reasonable effort â2016 Criticisms of Standard Costs Some criticisms of using standard costs for performance evaluation include the following: o o o o Standards limit operating improvements by discouraging improvement beyond the standard Standards are too difficult to maintain in a dynamic manufacturing environment, resulting in “stale standards.” Standards can cause employees to lose sight of the larger objectives of the organization by focusing only on efficiency improvements Standards can cause employees to unduly focus on their own operations to the possible harm of other operations that rely on them ©2016 Budgetary Performance Evaluation (slide of 2) • The budgetary performance evaluation compares the actual performance against the budget o The standards for direct materials, direct labor, and factory overhead are separated into the following two components: Standard price Standard quantity o The standard cost per unit for direct materials, direct labor, and factory overhead is computed as follows: ©2016 Budgetary Performance Evaluation (slide of 2) • The master budget is prepared based on planned sales and production o o The budgeted costs for materials purchases, direct labor, and factory overhead are determined by multiplying their standard costs per unit by the planned level of production Budgeted (standard) costs are then compared to actual costs during the year for control purposes ©2016 Budget Performance Report • The differences between actual and standard costs are called costs variances o o • A favorable cost variance occurs when the actual cost is less than the standard cost (at actual volumes) An unfavorable cost variance occurs when the actual cost exceeds the standard cost The report that summarizes actual costs, standard costs, and the differences for the units produced is called a budget performance report o The budget performance report is based on actual production rather than planned production ©2016 Manufacturing Cost Variances (slide of 4) • • The total manufacturing cost variance is the difference between total standard costs and total actual cost for the units produced For control purposes, each product cost variance is separated into two additional variances ©2016 The Factory Overhead Flexible Budget (slide of 2) • The budgeted factory overhead rate for Western Rider is computed as follows: ©2016 The Factory Overhead Flexible Budget (slide of 2) • For analysis purposes, the budgeted factory overhead rate is subdivided into a variable factory overhead rate and a fixed factory overhead rate For Western Rider, the variable overhead rate and the fixed overhead rate are computed as follows: ©2016 Variable Factory Overhead Controllable Variance (slide of 2) • • The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production The variable factory overhead controllable variance is computed as follows: o o If the actual variable overhead is less than the budgeted variable overhead, the variance is favorable If the actual variable overhead exceeds the budgeted variable overhead, the variance is unfavorable ©2016 Variable Factory Overhead Controllable Variance (slide of 2) • • The budgeted variable factory overhead is the standard variable overhead for the actual units produced The budgeted variable factory overhead is computed as follows: â2016 Fixed Factory Overhead Volume Variance The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced The fixed factory overhead volume variance is computed as follows: ©2016 Factory Overhead Cost Variance Report ©2016 Factory Overhead Account (slide of 3) • At the end of the period, the factory overhead account normally has a balance o A debit balance in Factory Overhead represents underapplied overhead Underapplied overhead occurs when actual factory overhead costs exceed the applied factory overhead o A credit balance in Factory Overhead represents overapplied overhead Overapplied overhead occurs when actual factory overhead costs are less than the applied factory overhead ©2016 Factory Overhead Account (slide of 3) • • The difference between the actual factory overhead and the applied factory overhead is the total factory overhead cost variance Thus, underapplied and overapplied factory overhead account balances represent the following total factory overhead cost variances: o o Underapplied Factory Overhead = Unfavorable Total Factory Overhead Cost Variance Overapplied Factory Overhead = Favorable Total Factory Overhead Cost Variance ©2016 Factory Overhead Account (slide of 3) • The variable factory overhead controllable variance and the volume variance can be computed by comparing the factory overhead account with the budgeted total overhead for the actual level produced o The variable factory overhead controllable variance is the difference between the actual overhead incurred and the budgeted overhead If the actual factory overhead exceeds (is less than) the budgeted factory overhead, the controllable variance is unfavorable (favorable) o The variable factory overhead volume variance is the difference between the applied overhead and the budgeted overhead If the applied factory overhead is less than (exceeds) the budgeted factory overhead, the volume variance is unfavorable (favorable) ©2016 Recording and Reporting Variances (slide of 4) • Standard costs may be used as a management tool to control costs separately from the accounts in the general ledger o However, many companies include standard costs in their accounts One method for doing so records sustained costs and variances at the same time the actual product costs are recorded ©2016 Recording and Reporting Variances (slide of 4) • The journal entries to record the standard costs and variances for direct labor are similar to those for direct materials These entries are summarized as follows: o o o o Work in Process is debited for the standard cost of direct labor Wages Payable is credited for the actual direct labor cost incurred Direct Labor Rate Variance is debited for an unfavorable variance and credited for a favorable variance Direct Labor Time Variance is debited for an unfavorable variance and credited for a favorable variance ©2016 Recording and Reporting Variances (slide of 4) • The factory overhead account already incorporates standard costs and variances into its journal entries o o o o o Factory Overhead is debited for actual factory overhead and credited for applied (standard) factory overhead The ending balance of factory overhead (overapplied and underapplied) is the total factory overhead cost variance By comparing the actual factory overhead with the budgeted factory overhead, the controllable variance can be determined By comparing the budgeted factory overhead with the applied factory overhead, the volume variance can be determined When goods are completed, Finished Goods is debited and Work in Process is credited for the standard cost of the product transferred ©2016 Recording and Reporting Variances (slide of 4) • At the end of the period, the balances of each of the • • variance accounts indicate the net favorable or unfavorable variance for the period These variances may be reported in an income statement prepared for management’s use Variances are not reported to external users In preparing an income statement for external users, the balances of the variance accounts are normally transferred to Cost of Goods Sold ©2016 Variance from Standards in Income Statement ©2016 Nonfinancial Performance Measures • A nonfinancial performance measure expresses performance in a measure other than dollars o • Such measures are often used to evaluate the time, quality, or quantity of a business activity Nonfinancial measures are often linked to either the inputs or outputs of an activity or process o A process is a sequence of activities for performing a particular task ©2016 ... Standard cost systems enable management to determine the following: How much a product should cost (standard cost) How much it does cost (actual cost) • When actual costs are compared with standard... materials, labor, and machine requirements needed to produce the product ©2016 Types of Standards • • Ideal standards, or theoretical standards, are standards that can be achieved only under perfect... standards, are standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage Currently attainable standards, sometimes