管理会计课后习题Ronald Hilton 第六章.docx

1、管理会计课后习题Ronald Hilton 第六章CHAPTER 6SERVICE COSTINGANSWERS TO REVIEW QUESTIONS6.1 The distinguishing features of service organisations relate to their outputs. Service organisations deliver help, utility or care, or provide an experience, information or other intellectual content. The majority of the

2、value that they create is intangible. According to Australian government industry classifications, the service sector spreads across twelve different industries. Examples of these include the provision of communication services, such as telephone and internet access, accommodation, food and beverage

3、s, and transport. In contrast to manufacturing most service outputs exhibit the following features: intangible heterogeneous cannot be stored consumed as they are produced.(a) Provision of electricity, gas and water are services, even though they may involve the provision of tangible goods that can

4、all be stored and consumed later. However, they are stored by the provider and are typically consumed as they are delivered to the customer.(b) The outputs of information media and telecommunication services are intangible, cannot be stored, are consumed as they are produced and, depending on compet

5、itive strategy, may be more or less heterogeneous. The product being consumed is knowledge and communication facilities. Information media is most likely to be homogeneous but telecommunication services can be homogeneous or heterogeneous. (c) Education and training services more clearly demonstrate

6、 all of the common features of service outputs.6.2 Retail and wholesale businesses are included in the services sector although they do not conform exactly to the definition and distinguishing features of service organisations described in Question 6.1 above. While they do provide tangible goods for

7、 resale, many of them also provide services such as finance, delivery and after-sales service.6.3 In a library, the salary of a tenured or permanent staff member is a fixed cost. The salary of a sessional or part-time staff member is a variable cost. The cost driver for the sessional staff member is

8、 the number of hours per week and the number of weeks per year that they work. The library management can use this information to compile a budget for staffing costs that takes into account the changing demand for staff according to time of year, time of day and other circumstances such as school ho

9、lidays and the annual leave arrangements of permanent staff that need to be covered.6.4 An accounting firm will have direct costs such as the time an accountant works on a case, the time that support staff work on specific cases and the stationery and mailing costs for each case. Indirect costs incl

10、ude heating, lighting, cleaning, office equipment and office furniture. Advertising and other promotional activities are also indirect costs relating to the accounting firm. Management may use this information to evaluate the financial performance of the firm.6.5 The value chain is a set of linked p

11、rocesses or activities that begins with acquiring resources and ends with providing (and supporting) products (i.e. goods and services) that customers value. Another definition provided by Porter (1985, p.34) suggested that:The value chain disaggregates a firm into its strategically relevant activit

12、ies in order to understand the behaviour of costs and the existing and potential sources of differentiation. A firm gains competitive advantage by performing these strategically important activities more cheaply or better than its competitors. The segments in the value chain for a service organisati

13、on are shown in the table below.SegmentDescriptionResearch and developmentActivities undertaken to identify potential new services or service production processesDesignActivities to design new services or service production processesProduction and delivery of serviceActivities to produce and deliver

14、 the service. For many services, these occur simultaneously, since many services are consumed as they are produced.MarketingActivities undertaken to position the service in the market, as well as selling and promoting the service.Customer supportActivities that support customers after the production

15、/delivery of the service Using a major airline such as Qantas or Virgin Blue as an example, the value chain can be illustrated as follows.SegmentExamplesResearch and developmentMarket research undertaken to identify demand for a special flight and accommodation package to Russia for the 2018 Footbal

16、l World Cup.DesignDetermining and locating various levels of accommodation at different locations; determining departure and re-arrival locations and times within Australia; arranging availability of aircraft and flight crews and confirming landing and handling arrangements in Russia.Production and

17、delivery of serviceBooking and ticketing arrangements; facilitating the check-in procedures prior to departure; providing the flights themselves; transfers from airport and booking into accommodation in Russia; undertaking similar activities for the return journey.MarketingDetermining appropriate pa

18、ckages and prices, promoting the packages to existing and potential new customers.Customer supportSince the service is consumed with the trip, there are no obvious examples of after-service activities for this example. Surveying customer satisfaction levels is not really supporting the current servi

19、ce, but may be useful in identifying similar opportunities in the future.6.6 In manufacturing, product costs comprise direct materials, direct labour and manufacturing overhead. Direct materials and direct labour, as direct costs, can be traced to the cost object. Manufacturing overhead, as an indir

20、ect cost, is allocated. In some service organisations, these cost categories exist in much the same manner. However, many service organisations have little or no direct materials, and their main cost element is direct labour. All other costs are treated as indirect or overhead costs, including minor

21、 materials and consumables used in delivering the service. In service organisations, upstream and downstream costs may also be included in overhead costs, as costing of services is not influenced by accounting standards.6.7 Retailers can focus on their purchasing activities to create competitive adv

22、antage by: cutting out middle-men, i.e. dealing directly with manufacturers. This enables them to reduce their costs and therefore offer their products to customers at a lower price (while maintaining their profit margins) using their direct relationship with manufacturers to: - improve the quality

23、of the goods that they buy- obtain products that are a little different from those available elsewhere (maybe different features or colours)- negotiate lower prices with the manufacturer. (This may also have been possible through the middle-men, although the benefits of these quantity discounts woul

24、d not necessarily have been passed on to retailers). 6.8 & 6.9 Key features and examples, together with appropriate costing systems are shown below.OrganisationKey featuresExamplesCosting systemProfessional service firmMostly professional staff (often in large numbers) but relatively few customers.E

25、mphasis is on how service is delivered rather than what is delivered.High degree of customisation and staff discretion in the service production/delivery.More of a front office situation, where staff interact directly with customers.Accounting and legal practices.Management and other forms of profes

26、sional consulting.Medical services and architects.Job costing.Direct costs (mainly labour) can be easily traced to job. Indirect costs (overhead including minor raw materials) allocated, usually based on direct labour.Service shopMedium contact time between staff and customers, medium customisation

27、of service and medium discretion in what service is offered.Move away from front office towards back office orientation.Hotel chains, banks, insurance offices, cafes and restaurants.Hybrid costing is appropriate.Job costing where services are different (e.g. car repairs, printing) moving towards pro

28、cess costing (or more likely operation costing) where some parts of service are standardised.Mass service entityMany customers, with each one requiring limited staff time, little customisation and very little opportunity for staff discretion.Mainly non-professional staff.Back office orientation.Equi

29、pment often involved.Emphasis on what is delivered rather than how.Major transport facilities such as trains, planes and bus services.Postal and telecommunication services.Electricity and gas providers.In many mass services, similarities in service means that process costing can be used.Modification

30、s needed, depending on the degree of discretion.6.10 Examples of public services that may be suited to the following costing approaches:(a) Job costing is most likely to be appropriate for road building, bridge repairs, building an infant welfare centre and the development of plans for a new skate p

31、ark.(b) Process costing would be appropriate for processing library loans, collecting cash from parking machines, monitoring parking meters and issuing fines.(c) Hybrid costing methods may be needed for servicing traffic lights, repairing roads and lopping roadside trees. Each job is performed regul

32、arly and will be similar but will often differ in terms of time, distance travelled, materials used or equipment required (but not all of these).6.11 The WIP report covers the period 30 September 2001 to 2 June 2004. The WIP total of $7235.27 has been calculated by accumulating the charges for services provided (only in April and May 2004) to a corporate client; the services are yet to be finalised and fees are yet to be charged. Time spent by various members of staff on work