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EdrawMindChapter 8 Cost Management
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Chapter 8 Cost Management
Chapter 8: Mind map of cost management. The principles of cost management include: integration principle, adaptability principle, cost-benefit principle, and importance principle.
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Chapter 8 Cost Management
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
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Chapter 8 Cost Management
Section 1 Overview of Cost Management
1. The significance of cost management
2. Objectives of cost management
3. Principles of cost management: principle of integration, principle of adaptability, principle of cost-benefit, principle of importance
4. Main contents of cost management: before, during and after the event
Section 2 Cost-volume-profit analysis and application
1. Basic equation of cost-volume-profit analysis:
1. Profit EBIT = sales volume × (unit price - unit variable cost) - fixed cost
Profit = Contribution Margin - Fixed Cost =Sales revenue × contribution margin rate - guaranteed sales × contribution margin rate =(Sales revenue - Breakeven sales) × Contribution margin rate
2. Profit = sales volume × unit contribution margin - fixed cost =Sales revenue×Contribution margin rate-Fixed costs
3. Profit = safety margin × unit contribution margin ˆ = safety margin × contribution margin
2. Break-even analysis (capital preservation analysis)
1. Single break-even
2. Product portfolio break-even method: Weighted average, combined unit, split method, main product method
3. Target profit analysis (poly analysis)
Target profit sales volume = (fixed cost target profit) / unit contribution margin Total target profit × (1-income tax rate)-dividend distribution = new retained earnings
4. Application of cost-volume-profit analysis in business decision-making
Product production and pricing strategies, selection of production process equipment, and selection of new product launches
5. Profit sensitivity analysis
Sensitivity coefficient = profit change percentage/factor change percentage
Absolute value > 1, sensitive
Section 3 Standard Cost Control and Analysis
1. Cost difference analysis of variable direct materials, variable direct labor, and variable manufacturing overhead
Two difference analysis
1. Actual output * standard dosage * standard unit price (standard) 2. Actual output * actual usage * standard unit price 3. Actual output * actual usage * actual unit price (actual cost)
Overall difference: 3-1 Volume difference (efficiency difference): 2-1 Price difference (cost/wage rate difference): 3-2
2. Fixed manufacturing overhead cost difference analysis
Three-difference analysis
1. Actual output * standard dosage * standard unit price (standard) 2. Actual output * actual usage * standard unit price 3. Budgeted output * standard usage * standard unit price (pure standard total cost) 4. Actual output * actual usage * actual unit price (actual cost)
Three differences: Overall difference: 4-1 Poor efficiency: 2-1 Yield difference: 3-2 Cost difference: 4-3 (pure actual - pure change)
two differences Energy difference: 3-1 Cost difference: 4-3
Section 4 Activity Costs and Responsibility Costs
1. Operation cost
1. Background of activity-based costing
2. The meaning of activity-based costing
3. Related concepts
4. Application of activity-based costing
5. Advantages and disadvantages of activity-based costing
6. Activity cost management
2. Responsibility cost management
1. Responsibility center and its assessment
Cost center: Controllable costs must meet three conditions: foreseeable, measurable, adjustable and controllable ① Budgeted cost savings = actual production budgeted responsibility cost - actual responsibility cost ② Budgeted cost saving rate = Budgeted cost savings/Actual output budgeted responsibility cost × 100%
Profit Center: ①Controllable Marginal Contribution = Marginal Contribution - Controllable Fixed Costs of the person in charge of the center ②Department marginal contribution = controllable marginal contribution - uncontrollable fixed costs of the person in charge of the center
Investment Center: ①Investment rate of return = profit before interest and tax/average operating assets ②Residual income = Profit before interest and tax - (Average operating assets × Minimum investment rate of return)
2. Customization of internal transfer prices
1. Price-based internal transfer pricing
2. Cost-based internal transfer pricing: full cost, full cost plus, variable cost, variable cost plus fixed manufacturing overhead
3. Negotiable internal transfer pricing: the upper limit is the market price and the lower limit is the unit variable cost
Key concepts and formulas of cost-volume-profit 1. Break-even point sales volume =Fixed cost/(Unit price-Unit variable cost) = fixed cost/contribution margin per unit Break-even point sales = Break-even point sales volume × unit price = fixed cost/contribution margin 2. Safety margin = normal sales volume – break-even point sales volume 3. Total contribution margin = total sales revenue – total variable costs
Follow the amount to rate and quantity to order ---Rate=amount/sales revenue, volume/unit price