Академический Документы
Профессиональный Документы
Культура Документы
Chapter 18
Cost volume profit analysis
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-1
Outline
What is CVP analysis? The break-even point Graphing CVP relationships Target net profit Using CVP analysis for management decisions CVP analysis with multiple products Including income taxes in CVP analysis Practical issues in CVP analysis An activity-based approach to CVP analysis Financial planning models
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-2
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-3
20/01/2014
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-4
Break-even formulas
Fixed costs Unit contribution margin
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-5
Terminology
Contribution margin (or variable costing) statement
An income statement that separates fixed and variable costs and calculates a contribution margin
18-6
20/01/2014
Terminology (cont.)
Contribution margin ratio
The unit contribution margin divided by the unit sales price The proportion of each sales dollar available to cover fixed costs and earn a profit
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-7
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-8
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-9
20/01/2014
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-10
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-11
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-12
20/01/2014
18-13
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-14
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-15
20/01/2014
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-16
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-17
Fixed costs + =
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-18
20/01/2014
(cont.)
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-19
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-20
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-21
20/01/2014
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-22
Total batch, product and facility level costs Break - even point = Selling price per unit - costs per unit
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-23
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-24
20/01/2014
Can be run using spreadsheet software, such as Excel Goal seek approaches
The analyst specifies the outcome, and the software specifies the necessary inputs
What-if analysis
The analyst specifies changes in assumptions and data to examine the effect of these changes on the outputs
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-25
Summary
CVP analysis is a decision tool that can be used to assess the effects on changes in profit of changes in sales volume, sales price, sales mix and costs The break-even point is the sales level at which sales covers coststhere are zero profits The break-even formula can be modified to calculate target profit, and to include sales mix and income taxes CVP analysis has several assumptions which limit its usefulness for decision making Activity-based approaches and financial planning modelling can provide more sophisticated models
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith
18-26