Mixed Costs
Mixed costs contain a fixed portion that is incurred even when the facility is unused, and a variable portion that increases with
usage. Utilities typically behave in this manner.
18 trang |
Chia sẻ: hongha80 | Lượt xem: 575 | Lượt tải: 0
Nội dung tài liệu Kế toán, kiểm toán - Chapter 22: Cost - Volume - profit analysis, để tải tài liệu về máy bạn click vào nút DOWNLOAD ở trên
Chapter 22COST-VOLUME-PROFIT ANALYSISFIXED COSTSTotal fixed costs remain constant asactivity increases.Number of Local CallsMonthly Basic Telephone BillCost per calldeclines asactivity increases.Number of Local Calls Monthly Basic Telephone Bill per Local CallC 1VARIABLE COSTS Total variable costsincrease asactivity increases.Minutes TalkedTotal CostsCost per MinuteMinutes TalkedCost per Minuteis constant asactivity increases.C 1MIXED COSTSMixed costs contain a fixed portion that is incurred even when the facility is unused, and a variable portion that increases withusage. Utilities typically behave in this manner.Fixed MonthlyUtility ChargeVariable Cost per KWActivity (Kilowatt Hours) Total Utility CostTotal mixed cost C 10 1 2 3 4 5 6 *Total Cost in1,000’s of Dollars10200*********Activity, 1,000’s of Units ProducedEstimated fixed cost = 10,000Draw a line through the plotted data points so that about equal numbers of points fall above and below the line. SCATTER DIAGRAMSP 1Vertical distance is the change in cost.Horizontal distance is the change in activity.Unit Variable Cost = Slope =Δ in cost Δ in units0 1 2 3 4 5 6*Total Cost in1,000’s of Dollars10200*********Activity, 1,000’s of Units ProducedSCATTER DIAGRAMSP 1The following relationships between unitsproduced and total cost are observed:Using these two levels of activity, compute: the variable cost per unit. the total fixed cost. THE HIGH-LOW METHODP 1 Variable cost per unit is determined as follows: Fixed costs are determined as follows:THE HIGH-LOW METHODTotal cost = $17,525 + $0.17 per unit producedP 1Contribution margin is the amount by which revenue exceeds the variable costs of producing the revenue.CONTRIBUTION MARGIN AND ITS MEASURESTotal contribution margin is $60,000 and the contribution margin per unit sold is $30.A 1CONTRIBUTION MARGIN AND ITS MEASURESContributionmargin ratio Contribution margin per unitSales price per unit=Contributionmargin ratio =$30 per unit$100 per unit= 30%A 1How much contribution margin must Rydell Company have to cover its fixed costs (break-even)?Answer: $24,000COMPUTING THE BREAK-EVEN POINTHow many units must Rydell sell to cover its fixed costs (break-even)?Answer: $24,000 ÷ $30 per unit = 800 unitsP 2Unit sales price less unit variable cost($30 in previous example)We have just seen one of the basic CVP relationships – the break-even computation.COMPUTING THE BREAK-EVEN POINTBreak-even point in units = Fixed costsContribution margin per unitP 2The break-even formula may also be expressed in sales dollars.COMPUTING THE BREAK-EVEN POINT Unit contribution margin Unit sales priceBreak-even point in dollars = Fixed costsContribution margin ratioP 2COMPUTING SALESFOR A TARGET INCOMEBreak-even formulas may be adjusted to show the sales volume needed to earn any amount of income.Unit sales = Fixed costs + Target pretax incomeContribution margin per unit Dollar sales = Fixed costs + Target pretax incomeContribution margin ratioC 2Before-tax income = Target net income1 - tax rateCOMPUTING SALES (DOLLARS) FOR ATARGET NET INCOMETo convert target net income to before-tax income, use the following formula:C 2 The CVP formulas can be modified for use when a company sells more than one product. The unit contribution margin is replaced with the contribution margin for a composite unit.A composite unit is composed of specific numbers of each product in proportion to the product sales mix.Sales mix is the ratio of the volumes of the various products.COMPUTING A MULTIPRODUCTBREAK-EVEN POINTP 4A measure of the extent to which fixed costs are being used in an organization.A measure of how a percentage change in sales will affect profits.Contribution margin Pretax income= Degree of operating leverageDEGREE OF OPERATING LEVERAGEA 2END OF CHAPTER 22
Các file đính kèm theo tài liệu này:
- chap022_0655.ppt