《加里管理会计（英文版）》教学课件ch06.pptxVIP

Variable Costing and Segment Reporting: Tools for ManagementChapter 6Learning Objective 1Explain how variable costing differs from absorption costing and compute unit product costs under each method.Three Simplifying AssumptionsThis chapter uses actual costing rather than the normal costing approach that was used in the job-order costing chapters.This chapter always uses the actual?number of units produced as the allocation base for assigning actual fixed manufacturing overhead costs to products.This chapter always assumes that the variable manufacturing costs per unit and the total fixed manufacturing overhead cost per period remain constant.ProductCostsDirect MaterialsProductCostsDirect LaborVariable Manufacturing OverheadFixed Manufacturing OverheadPeriodCostsPeriodCostsVariable Selling and Administrative ExpensesFixed Selling and Administrative ExpensesOverview of Variable and Absorption CostingVariableCostingAbsorptionCostingQuick Check 1 Which method will produce the highest values for work in process and finished goods inventories? a. Absorption costing.b. Variable costing.c. They produce the same values for these inventories.d. It depends…Quick Check 1a Which method will produce the highest values for work in process and finished goods inventories? a. Absorption costing.b. Variable costing.c. They produce the same values for these inventories.d. It depends. . .Unit Cost Computations – Part 1Harvey Company produces a single product with the following information available:Unit Cost Computations– Part 2Unit product cost is determined as follows:Under absorption costing, all production costs, variable and fixed, are included when determining unit product cost. Under variable costing, only the variable production costs are included in product costs. Learning Objective 2Prepare income statements using both variable and absorption costing.Variable and Absorption Costing Income Statements Let’s assume the following additional information for Harvey Company