管理会计英文版课后习题答案高等教育出版社chapter 3.docx

1、管理会计英文版课后习题答案高等教育出版社chapter 3管理会计（高等教育出版社）于增彪（清华大学） 改编余绪缨（厦门大学） 审校CHAPTER 3Activity cost behavior questions for writing and discussion1. Knowledge of cost behavior allows a manager to assess changes in costs that result from changes in activity. This allows a manager to assess the effects of choices

2、 that change activity. For example, if excess capacity exists, bids that at least cover variable costs may be totally appropriate. Knowing what costs are variable and what costs are fixed can help a manager make better bids.2. The longer the time period, the more likely that a cost will be variable.

3、 The short run is a period of time for which at least one cost is fixed. In the long run, all costs are variable.3. Resource spending is the cost of acquiring the capacity to perform an activity, whereas resource usage is the amount of activity actually used. It is possible to use less of the activi

4、ty than what is supplied. Only the cost of the activity actually used should be assigned to products.4. Flexible resources are those acquired from outside sources and do not involve any long-term commitment for any given amount of resource. Thus, the cost of these resources increases as the demand f

5、or them increases, and they are variable costs (varying in proportion to the associated activity driver).5. Committed resources are acquired by the use of either explicit or implicit contracts to obtain a given quantity of resources, regardless of whether the quantity of resource available is fully

6、used or not. For multiperiod commitments, the cost of these resources essentially corresponds to committed fixed costs. Other resources acquired in advance are short term in nature and essentially correspond to discretionary fixed costs.6. Committed fixed costs are those incurred for the acquisition

7、 of long-term activity capacity and are not subject to change in the short run. Annual resource expenditure is independent of actual usage. For example, the cost of a factory building is a committed fixed cost. Discretionary fixed costs are those incurred for the acquisition of short-term activity c

8、apacity, the levels of which can be altered quickly. In the short run, resource expenditure is also independent of actual activity usage. An engineers salary is an example of such an expenditure.7. A variable cost increases in direct proportion to changes in activity usage. A one-unit increase in ac

9、tivity usage produces an increase in cost. A step cost, however, increases only as activity usage changes in small blocks or chunks. An increase in cost requires an increase in several units of activity. When a step cost changes over relatively narrow ranges of activity, it may be more convenient to

10、 treat it as a variable cost.8. A step cost with narrow steps can be treated as variable, while one with wide steps is typically treated as fixed.9. An activity rate is the resource expenditure for an activity divided by the activitys practical capacity.10. Mixed costs are usually reported in total

11、in the accounting records. How much of the cost is fixed and how much is variable is unknown and must be estimated.11. A scattergraph allows a visual portrayal of the relationship between cost and activity. It reveals to the investigator whether a relationship may exist and, if so, whether a linear

12、function can be used to approximate the relationship.12. Managers can use their knowledge of cost relationships to estimate fixed and variable components. A scattergraph can be used as an aid in this process. From a scattergraph, a manager can select two points that best represent the relationship.

13、These two points can then be used to derive a linear cost formula. The high-low method tells the manager which two points to select to compute the linear cost formula. The selection of these two points is not left to judgment.13. Because the scatterplot method is not restricted to the high and low p

14、oints, it is possible to select two points that better represent the relationship between activity and costs, producing a better estimate of fixed and variable costs. The main advantage of the high-low method is that it removes subjectivity from the choice process. The same line will be produced by

15、two different people.14. Assuming that the scattergraph reveals that a linear cost function is suitable, then the method of least squares selects a line that best fits the data points. The method also provides a measure of goodness of fit so that the strength of the relationship between cost and act

16、ivity can be assessed.15. The best-fitting line is the one that is “closest” to the data points. This is usually measured by the line that has the smallest sum of squared deviations.16. No. The best-fitting line may not explain much of the total cost variability. There must be a strong relationship

17、as well.17. The coefficient of determination is the percentage of total variability in costs explained by the activity. As such, it is a measure of the goodness of fit, the strength of the relationship between cost and activity.18. The correlation coefficient is the square root of the coefficient of

18、 determination. The correlation coefficient reveals the direction of the relationship in addition to the strength of the relationship.19. If the variation in cost is not well explained by activity usage (the coefficient of determination is low) as measured by a single driver, then other explanatory

19、variables may be needed to build a good cost formula.20. If the mixed costs are immaterial, then the method of decomposition is unimportant. Furthermore, sometimes managerial judgment may be more useful for assigning costs than the use of formal statistical methodology. Exercises311. Number of Units

20、 Total Cost Cost per Unit 0 $240,000 NA 100,000 240,000 $2.40 200,000 240,000 1.20 300,000 240,000 0.80 400,000 240,000 0.60 500,000 240,000 0.482. This depreciation cost is strictly fixed. 321. Miles Traveled Total Cost Cost per Mile 0 $ 0 $0.00 5,000 6,500 1.30* 10,000 13,000 1.30 15,000 19,500 1.

21、30 20,000 26,000 1.30 25,000 32,500 1.30 *$5,200/4,000 or $26,000/20,000 = $1.302. The cost of fuel for the delivery activity is strictly variable. 331. Number of Units Total Cost Cost per Unit 0 $10,000 NA 10,000 10,000 $1.00 20,000 10,000 0.50 30,000 20,000 0.67 40,000 20,000 0.50 50,000 30,000 0.

22、602. Forming machines rental cost is a step cost.34 Resource Flexible/Committed Cost BehaviorJet rental Committed FixedHotel rooms Committed FixedBuffet Flexible VariableFavor package Flexible VariableBuses Committed Step 351. Resource Total Cost Unit Cost Plastic1 $ 10,800 $0.027 Direct labor and v

23、ariable overhead2 8,000 0.020 Mold sets3 20,000 0.050 Other facility costs4 10,000 0.025 Total $ 48,800 $0.122 10.90 $0.03 400,000 = $10,800; $10,800/400,000 = $0.027 2$0.02 400,000 = $8,000; $8,000/400,000 = $0.02 3$5,000 4 quarters = $20,000; $20,000/400,000 = $0.05 4$10,000; $10,000/400,000 = $0.

24、0252. Plastic, direct labor, and variable overhead are flexible resources; molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a s

25、tep cost for the production of action figures in general. Other facility costs are strictly fixed.361. X-ray film and developing supplies are likely to vary with the number of pacemakers produced. As production increases, we would expect more film and developing supplies to be used. Inspectors and X

26、-ray machines should remain constant within the relevant range.2. Total cost = $310,000 + ($1.60 100,000) = $470,000 Total fixed cost = $310,000 Total variable cost = $1.60 100,000 = $160,0003. Unit cost = $470,000/100,000 = $4.70 per pacemaker4. Unit fixed cost = $310,000/100,000 = $3.10 per pacema

27、ker5. Unit variable cost = $1.60 per pacemaker6. a. $438,000/80,000 = $5.48; $310,000/80,000 = $3.88; $1.60 b. $502,000/120,000 = $4.18; $310,000/120,000 = $2.58; $1.60 The unit cost increases in the first case and decreases in the second case. This is attributable to spreading fixed costs over fewe

28、r units of activity output in the first case and over more units in the second case. The unit variable cost stays constant.371. Committed resources: trucks and technicians salaries Flexible resources: supplies, small tools, and fuel2. Variable activity rate = $840,000/70,000 = $12 per call Fixed act

29、ivity rate = $1,200,000*/80,000 = $15 per call Total cost of one call = $12 + $15 = $27 per call *($26,250 40) + ($6,000 25)3. Activity availability = Activity usage + Unused capacity Calls available = Calls made + Unmade calls 80,000 calls = 70,000 calls + 10,000 calls4. Total cost of Cost of Cost

30、of committed resources = activity used + unused capacity $1,200,000 = ($15 70,000) + ($15 10,000) $1,200,000 = $1,050,000 + $150,000 Note: The analysis is restricted to committed resources, since only these resources will ever have any unused capacity.381. Committed resource charges: monthly fee, ac

31、tivation fee, cancellation fee (if triggered by contract cancellation prior to one year) Flexible resource charges: all additional charges for airtime, long distance and roaming2. Plan 1: Minutes available = Minutes used + Unused minutes 60 minutes = 45 minutes + 15 minutes Plan 2: Minutes available

32、 = Minutes used + Unused minutes 120 minutes = 45 minutes + 75 minutes Plan 1 is more cost effective. Jana will have some unused capacity (on average, 15 minutes a month), and the overall cost will be lower by $10 per month. 3. Plan 1*: Minutes available = Minutes used + Unused minutes 60 minutes = 90 minutes + (- 30) minutes Plan 1*: Minutes available = Minutes