Академический Документы
Профессиональный Документы
Культура Документы
Chapter 23
Relevant Costing
for Managerial
Decisions
© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Learning Objectives
CONCEPTUAL
C1 Describe the importance of relevant costs
for short-term decisions.
ANALYTICAL
A1 Evaluate short-term managerial decisions
using relevant costs.
PROCEDURAL
P1 Determine product selling prices using cost
data.
Exhibit 23.2
Overhead (30%
20,000 $0.80 $14,000
variable)
Selling expenses
25,000 $2.00 $10,000
(60% variable)
Exhibit 23.5
Scrap 10,000 units × $0.40 per unit
$ per unit Scrap Rework
Product A Product B
Selling price per unit………………………………….. $5.00 $7.50
Variable costs per unit……………………………….. 3.50 5.50
Contribution margin per unit (a)………………. $1.50 $2.00
Machine hours per unit (b)………………………… 1.0 2.0
Contribution margin per unit…………… $1.50 $1.00
Exhibit 23.9
Avoidable Unavoidable
Treadmill Division Total
Expenses Expenses
Sales………………………………………………………………..... $47,800
Cost of goods sold………………………………………………. 30,000 $30,000
Gross profit………………………………………………………….. 17,800
Direct expenses
Wages expense……………………………………………… 7,900 7,900
Depreciation expense—Equipment……………… 200 $200
Total direct expenses…………………………………… 8,100
Departmental contribution to overhead……………… $9,700
Avoidable Unavoidable
Treadmill Division Total
Expenses Expenses
Indirect expenses
Rent and utilities expense ……………………………. 3,150 3,150
Advertising expense……………………………………… 400 400
Insurance expense………………………………………. 400 300 100
Share of office department expenses…………… 3,060 2,200 860
Share of purchasing department expenses…. 3,190 1,000 2,190
Total indirect expenses………………………………… 10,200
Operating income (loss)…………………………………….. $(500)
Total avoidable expenses…………………………………… $41,800
Total unavoidable expenses………………………………… $6,500
Sales $ 7,800
*18,000 × 4 years
© McGraw-Hill Education. 23-45
Learning Objective P1:
Determine product selling price
using cost data.
© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. 23-50