## 会计代写|中级管理会计代写Intermediate Management Accounting代考|Dealing with overheads on a cost centre basis

We saw in Chapter 1 that businesses are often divided into departments, where each department carries out a separate task. Many of these businesses charge overheads to cost units on a department-by-department basis. They do so in the belief that it will give rise to more accurate full costing information. It is probably only in a minority of cases, however, that it leads to any great improvement in accuracy. Although applying overheads on a departmental basis may not be of enormous benefit, it is probably not an expensive exercise. Cost elements are likely to be collected department by department for other purposes (particularly control) and so applying overheads on a department-by-department basis may be a fairly straightforward matter.

In Example $4.4$ we see how the departmental approach to deriving full cost can be applied in a service-industry context.

Where cost determination is dealt with departmentally, each department is known as a cost centre. This can be defined as a particular physical area, or some activity, or function, for which the cost is separately identified. Charging direct cost to jobs in a departmental system is exactly the same as where the whole business is one single cost centre. It is simply a matter of keeping a record of:

• the number of hours of direct labour worked on the particular job and the grade of labour, where there are different grades with different rates of pay;
• the cost of the direct materials taken from stores and applied to the job; and
any other direct cost elements, for example some subcontracted work, associated with the job.
This record keeping will normally be done cost centre by cost centre.
The total production overheads of the entire business must be broken down on a cost centre basis. That is, they must be divided between the cost centres, so that the sum of the overheads of the individual cost centres equals the overheads for the entire business. By charging all of their overheads to jobs, the cost centres will, between them, charge all of the overheads of the business to jobs.

## 会计代写|中级管理会计代写Intermediate Management Accounting代考|Full (absorption) costing and relevant costs

We saw in Chapter 2 , that for decision-making purposes relevant costs are future costs that vary with the decision. We have also seen, however, that full costing tends to rely on past cost. It focuses on outlay cost and ignores opportunity costs. This seems to suggest an unbridgeable gap between the relevant cost and the full costing approaches. If so, this raises doubts about the usefulness of full costing for decision – making purposes.

In theory, relevant cost analysis should be used whenever a decision is needed to set a price for a product, to introduce a new product, or to stop producing an existing product. In practice, however, it may not be feasible to do this. Let us assume that a large business makes 300 separate product types. Here the range of possibilities is enormous. In addition to carrying out relevant cost analysis on each product, it could also be carried out on different combinations of two, three, four products and so on. To deal with this tsunami of possible options, full cost information, based on historic cost, can be used to act as a filter. It can direct attention to those products or services that would most benefit from relevant cost analysis. By providing an indication of the long-run average cost of each product, managers have some idea of the long-term cash outflows to be incurred. They may then decide to investigate further using relevant cost analysis.

An alternative to full (absorption) costing is variable (marginal) costing – which we discussed in Chapter 3 . We may recall that this approach distinguishes between fixed and variable costs.

Under variable costing, income is measured in a different way to that of full costing. It will include only variable cost (that is, both variable direct and variable indirect cost) as part of the cost of the goods or service produced. Any fixed cost (that is, both fixed direct and fixed indirect cost) will be treated as a cost of the period in which it is incurred. Thus, inventories of finished products, or work in progress, carried from one accounting period to the next, is valued on the basis of their variable cost only.

As we have seen, full costing calculates product cost by taking the direct cost (whether fixed or variable) and an appropriate share of the indirect cost (whether fixed and variable) for the period in which the product is produced.

To illustrate the difference between the two costing approaches, let us consider Example 4.7.

# 管理会计代考

## 会计代写|中级管理会计代写中间管理会计代考|在成本中心的基础上处理管理费用

• 特定工作上的直接劳动的小时数和劳动的等级，其中有不同的等级和不同的工资;
• 从商店取出并用于该工作的直接材料的成本;以及与工作相关的任何其他直接成本因素，例如一些分包工作。这种记录通常是按成本中心逐一进行的。整个企业的生产间接费用总额必须以成本中心为基础进行细分。也就是说，它们必须在成本中心之间进行分配，以便各个成本中心的间接费用之和等于整个业务的间接费用。通过将所有的管理费用记在作业上，成本中心将在它们之间将业务的所有管理费用记在作业上
会计代写|中级管理会计代写中级管理会计代考|全部(吸收)成本和相关成本 .我们在第二章中看到，为了决策的目的，相关成本是随着决策而变化的未来成本。然而，我们也看到，全面成本核算往往依赖于过去的成本。它关注的是支出成本，而忽略了机会成本。这似乎表明，有关费用和全部费用计算方法之间存在着不可弥合的差距。如果是这样的话，这就引起了对全面成本计算在决策目的上是否有用的怀疑从理论上讲，每当需要为一种产品定价、引进一种新产品或停止生产一种现有产品时，都应该使用相关的成本分析。然而，在实践中，这样做可能是不可行的。让我们假设一家大型企业生产300种不同的产品。这里的可能性是巨大的。除了对每个产品进行相关的成本分析外，还可以对两个、三个、四个产品的不同组合进行分析，等等。为了应对这一可能选择的海啸，基于历史成本的完整成本信息可以用作过滤器。它可以引导人们关注那些从相关成本分析中获益最多的产品或服务。通过提供每个产品的长期平均成本的指标，管理人员对将要产生的长期现金流出有了一定的了解。然后，他们可能决定使用相关成本分析进行进一步调查替代完全(吸收)成本的是可变(边际)成本，我们在第三章讨论过。我们可以回顾一下，这种方法区分了固定成本和可变成本在可变成本法下，收入的计量方法与完全成本法不同。它将只包括可变成本(即可变直接成本和可变间接成本)，作为所生产商品或服务成本的一部分。任何固定成本(即固定直接成本和固定间接成本)将作为其发生期间的成本处理。因此，从一个会计期间转入下一个会计期间的成品或在制品的存货，仅以其可变成本为基础计价正如我们所看到的，完全成本法通过取产品生产期间的直接成本(无论是固定的还是可变的)和适当份额的间接成本(无论是固定的还是可变的)来计算产品成本为了说明两种成本计算方法之间的区别，让我们考虑例4.7

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