【文章內(nèi)容簡介】 e r of S h ipm e n ts1 2 Refining a Costing System,conts Refining a Costing System,conts ?ABC yields different cost per unit results as pared to the previous singledriver methods: 3 2023/2/13 23 Refining a Costing System,conts An Example, concluded: Different Costs Lead to Different Profits Activitybased costing P116 Designing an ABC System Cost Objects (., products and customers) Activities Consumption of Resources Cost Reasoning for ABC Activitybased costing,conts. ? In order to implement activitybased costing, a sevenstep procedure should be ? Step 1: Identify the products that are the chosen cost objects. ? Step 2: Identify the direct costs of the products. ? Step 3: Select the activities and costallocation bases to use for allocating indirect costs to the products. Activitybased costing,conts. ? In order to implement activitybased costing, a sevenstep procedure should be followed. ? Step 4: Identify the indirect costs associated with each costallocation base (activity). ? Step 5: Compute the rate per unit of each costallocation base (activity) used to allocate indirect costs to the products. ? Step 6: Compute the indirect costs allocated to the products. Activitybased costing,conts. ? In order to implement activitybased costing, a sevenstep procedure should be followed. ? Step 7: Compute the total costs of the products by adding all direct and indirect costs assigned to the products. ? This process is not a strict stepbystep procedure. You may get to one step and realize you need to revise something you did in a previous step, so you will frequently find yourself going back to a previous step in implementing an activitybased costing system. Activitybased costing, conts. ? ABC is generally perceived to produce superior costing figures due to the use of multiple drivers across multiple levels. ? ABC is only as good as the drivers selected, and their actual relationship to costs. Poorly chosen drivers will produce inaccurate costs, even with ABC. ?LEARNING OBJECTIVE 4 ?Describe a fourpart cost hierarchy Activitybased costing,conts. ? Cost Hierarchies .In an ABC system, costs are categorized on the basis of the different types of cost drivers utilized. ABC systems monly use a cost hierarchy having four levels. These cost drivers differ in their relationship between the indirect cost and the product or ? Output unitlevel costs are the costs of activities performed on each individual unit of a product or service. These costs increase as the number of units produced increases. Activitybased costing,conts. ? Cost Hierarchies. These cost drivers differ in their relationship between the indirect cost and the product or ? Batchlevel costs are the costs of activities related to a group of units of products or services rather than the individual unit. Setup costs are an example of batch level costs, as this cost is incurred once for each batch, regardless of the size of the batch. Activitybased costing,conts. ? Cost Hierarchies. These cost drivers differ in their relationship between the indirect cost and the product or ? Productsustaining costs (servicesustaining costs) are the costs of activities undertaken to support individual products or services regardless of the number of units or batches produced. Design costs are an example of this type of cost. Activitybased costing,conts. ? Cost Hierarchies .These cost drivers differ in their relationship between the indirect cost and the product or ? Facilitysustaining costs are the costs of activities that cannot be traced to individual products or services but support the anization as a whole. Examples of this type of cost include general administration, rent, and building security. These costs usually lack a causeandeffect relationship between the cost and the allocation base. ?LEARNING OBJECTIVE 5 ?Cost products or services using activitybased costing Activitybased costing,conts. ? Another Example ? a major automobile manufacturer ,Plastim makes two types of lenses:a plex lens,CL5,and a simple lens,S3 . P111113 ? 15000 plex lens CL5,and 60000 simple lens S3 ? Plastim plans to use 39750 direct manufacturing laborhours,use 9750 direct manufacturing laborhours to CL5 ? Indirect costs 2385000 Example for presentation: Background