【正文】 oducts or services. Design costs may be driven by the time spent by engineers designing the product itself and planning how it will be made. 24 FacilitySustaining Costs... – are resources sacrificed on activities that cannot be traced to individual products or services but which support the anization as a whole. ?General administration ?rent ?building security ?CEO?s salary 25 Different forms of ABC ?Simple approach includes manufacturing overhead only ?ABC system for all indirect costs includes manufacturing and nonmanufacturing costs ?Comprehensive system includes all productrelated costs, except direct material 26 The Mechanics of ABC Classic Brass Ltd makes finely machined brass fittings for a variety of applications. For this pany, the ultimate cost objects are: ?Products, ?Customer orders, and ?Customers. One overhead cost shipping can be traced directly to customer orders. The pany’s activity cost pools are shown on the next slide. 27 Step 1: Identify and Define Activities and Activity Cost Pools At Classic Brass, the ABC team, selected the following activity cost pools and activity measures: A c t i v i t y C os t P oo l A c t i v i t y M e a s ur eC us t om e r or de r s N um be r of c us t om e r or de r sP r od uc t de s i gn N o. of pr od uc t s de s i gn e dO r de r s i z e M a c hi ne ho ur sC us t om e r r e l a t i on s N um be r of a c t i v e c us t om e r sO t he r ( no t a s s i gn e d t o pr od uc t s )A c t i v i t y C o s t P o o l s a t C l a s s i c B r a s s28 Step 1: Identify and Define Activities and Activity Cost Pools ? Customer Orders assigned all costs of resources that are consumed by taking and processing customer orders. ? Product Designs assigned all costs of resources consumed by designing products. ? Order Size assigned all costs of resources consumed as a consequence of the number of units produced. ? Customer Relations – assigned all costs associated with maintaining relations with customers. ? Other – assigned all overhead costs that are not associated with the other cost pools. 29 P r o d u c t i o n D e p a r t m e n tI n d i r e c t f a c t o r y w a g e s 5 0 0 , 0 0 0$ F a c t o r y e q u i p m e n t d e p r e c i a t i o n 3 0 0 , 0 0 0 F a c t o r y u t i l i t i e s 1 2 0 , 0 0 0 F a c t o r y b u i l d i n g l e a s e 8 0 , 0 0 0 1 , 0 0 0 , 0 0 0$ S h i p p i n g c o s t s t r a c e d t o c u s t o m e r o r d e r s 4 0 , 0 0 0 G e n e r a l A d m i n i s t r a t i v e D e p a r t m e n tA d m i n i s t r a t i v e w a g e s a n d s a l a r i e s 4 0 0 , 0 0 0 O f f i c e e q u i p m e n t d e p r e c i a t i o n 5 0 , 0 0 0 A d m i n i s t r a t i v e b u i l d i n g l e a s e 6 0 , 0 0 0 5 1 0 , 0 0 0 M a r k e t i n g D e p a r t m e n tM a r k e t i n g w a g e s a n d s a l a r i e s 2 5 0 , 0 0 0 S e l l i n g e x p e n s e s 5 0 , 0 0 0 3 0 0 , 0 0 0 T o t a l o v e r h e a d c o s t s 1 , 8 5 0 , 0 0 0$ O v e r h e a d C o s t s a t C l a s s i c B r a s s( M a n u f a c t u r i n g a n d N o n M a n u f a c t u r i n g )Step 2: Whenever Possible, Directly Trace Overhead Costs to Activities and Cost Objects 30 Step 3: Assign Costs to Activity Cost Pools C us t om e r O r de r s P r od uc t D e s i gn O r de r S i z e C us t om e r R e l a t i on s O t he r To t a lP r od uc t i on D e pa r t m e ntI nd i r e c t f a c t ory w a ge s 25% 40% 20% 10% 5% 100%Fa c t ory e qu i pm e nt de pre c i a t i on 20% 0% 60% 0% 20% 100%Fa c t ory ut i l i t i e s 0% 10% 50% 0% 40% 100%Fa c t ory bu i l di ng l e a s e 0% 0% 0% 0% 100% 100%S hi pp i ng c os t s * *G e ne r a l A dm i ni s t r a t i v e D e pa r t m e ntA dm i ni s t r a t i v e w a ge s a nd s a l a r i e s 15% 5% 10% 30% 40% 100%O f f i c e e qu i pm e nt de pre c i a t i on 30% 0% 0% 25% 45% 100%A dm i ni s t r a t i v e bu i l di ng l e a s e 0% 0% 0% 0% 100% 100%M a r k e t i ng D e pa r t m e ntM a r k e t i ng w a ge s a nd s a l a r i e s 20% 10% 0% 60% 10% 100%S e l l i ng e x pe ns e s 10% 0% 0% 70% 20% 100%A c t i v i t y C os t P oo l sAt Classic Brass the following distribution of resource consumption across activity cost pools is determined. **Not included because they are directly traced to customer orders. 31 C u s t o m e r O r d e r s P r o d u c t D e s i g n O r d e r S i z e C u s t o m e r R e l a t i o n s O t h e r T o t a lP r o d u c t i o n D e p a r t m e n tI n d i r e c t f a c t o r y w a g e s 1 2 5 , 0 0 0$ F a c t o r y e q u i p m e n t d e p r e c i a t i o nF a c t o r y u t i l i t i e sF a c t o r y b u i l d i n g l e a s eG e n e r a l A d m i n i s t r a t i v e D e p a r t m e n tA d m i n i s t r a t i v e w a g e s a n d s a l a r i e sO f f i c e e q u i p m e n t d e p r e c i a t i o nA d m i n i s t r a t i v e b u i l d i n g l e a s eM a r k e t i n g D e p a r t m e n tM a r k e t i n g w a g e s a n d s a l a r i e sS e l l i n g e x p e n s e sT o t a lA c t i v i t y C o s t P o o l sIndirect factory wages $500,000 Percent consumed by customer orders 25% $125,000 Step 3: Assign Costs to Activity Cost Pools P r o d u c t i o n D e p a r t m e n tI n d i r e c t f a c t o r y w a g e s 5 0 0 , 0 0 0$ F a c t o r y e q u i p m e n t d e p r e c i a t i o n 3 0 0 , 0 0 0 F a c t o r y u t i l i t i e s 1 2 0 , 0 0 0 F a c t o r y b u i l d i n g l e a s e 8 0 , 0 0 0 1 , 0 0 0 , 0 0 0$ S h i p p i n g c o s