Quá trình sản xuất được phân chia thành các khu vực của các loại tương tự hoạt động được gọi là Trung tâm Chi phí này có thể được, ví dụ như: gia công, lắp ráp, sửa chữa Mỗi loại chi phí chi phí sản xuất sau đó được phân bổ hoặc phân bổ cho các trung tâm chi phí để đi đến một chi phí phí cho mỗi | PRODUCT COSTING CHALLENGE THE SYSTEM BELOW-THE-LINE COSTS Would your response be different if the following information were available to you A has been made for many years and any design manufacturing problems eliminated. It is sold in large quantities to a few customers. B is a new product with many teething problems. It is sold in small quantities to many different customers. Discussions with the relevant departmental managers enable the below-the-line expenses to be analysed by product. Don t be put off You are not looking for excessive precision in this allocation. Managers should be able to give you an approximate percentage split. A B Total Sales 100 100 200 Less Cost of Goods Sold 70 50 120 Gross Profit 30 50 80 Expenses Admin 2 8 10 Selling 4 16 20 Service - 30 30 Operating Profit Loss 24 4 20 Does your business make its strategic decisions at the gross profit stage PRODUCT COSTING CHALLENGE THE SYSTEM TIME-RELATED OVERHEADS Traditional absorption costing implies that the overhead part of the product cost depends on time ie if the overhead rate is 60 hour then if Product J and K both take 10 minutes to make they will both be charged with 10 overhead. Is this realistic Are all overhead costs driven by time Example Products J and K both take 10 minutes per unit to machine. J is a long-established product material is purchased and received in the normal batch size of 100. When J is machined the first-off is inspected and the balance run automatically. K is a new product. It has been badly designed and engineered. Material is purchased and received in the normal batch quantity of 1 When K is being machined managers designers engineers and inspectors crowd around the machine nursing the product through the process. 88 PRODUCT COSTING CHALLENGE THE SYSTEM TIME-RELATED OVERHEADS What goes into overhead costs - purchasing receiving inspection etc etc Did J really cost the same to produce as K Do you have products with differing cost demands Activity Based Costing
