TAILIEUCHUNG - Lecture Accounting for decision making and control (8/e): Chapter 13 - Jerold L. Zimmerman

Chapter 13 - Overhead and marketing variances. Chapter 13 extends the price and quantity variances to overhead and marketing. The main contents of the chapter consist of the following: Overhead volume measures, budget volume estimates, flexible overhead budget, overhead rate,. | Overhead and Marketing Variances Chapter Thirteen Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Connection to Other Chapters Chapter 13 extends the price and quantity variances to overhead and marketing. Chapter 12 began the price and quantity variance analysis with direct labor and direct materials. Chapter 9 described how absorption costing applies overhead to jobs. Chapter 4 built the foundation on how internal accounting is used for decision control. 13- Overhead Volume Measures BV: Budgeted volume (also known as denominator volume) Estimated at the beginning of the year and used for calculating the overhead rate SV: Standard volume (also known as earned or allowed volume) (Output units completed) (Standard input hours per output unit) Volume used to apply overhead to work-in-process inventory AV: Actual volume Actual hours or other input resource used during period 13- Budget Volume Estimates Estimated budget volume influences overhead rate. Increasing budgeted volume (denominator) while holding total budgeted dollars constant (numerator) decreases the overhead rate. Expected volume to set budget Adjust expectation based on number of units forecast for next year. Rises and falls with business cycle Normal volume to set budget Forecast of long-run average annual production Does not change over business cycle 13- Flexible Overhead Budget Flexible overhead budget is the formula for budget forecast. Flexible overhead budget = FOH + (VOH V) = $1,350,000 + ($14 V) Estimate budgeted overhead (BOH) dollars using a specific budgeted volume number (BV) and the flexible overhead budget formula. BOH = FOH + (VOH BV) = $ 1,350,000 + ($14 67,500 hours) = $ 2,295,000 13- Overhead Rate Overhead rate is the total budgeted overhead dollars for the year divided by the budgeted volume for the year. OHR = (BOH BV) = (FOH BV) + VOH The overhead rate consists of the estimated: fixed overhead $ per input hour

• Kế toán - Kiểm toán
• Accounting for decision making
• Decision making
• Decision control
• Marketing variances
• Budget volume estimates
• Flexible overhead budget
• Organizational architecture
• Generic budgeting systems
• Cost allocation
• Pervasiveness of cost allocations
• External financial reports
• Death spiral
• Internal services
• Absorption cost systems
• Job order costing
• Allocating overhead to jobs
• Criticisms of absorption cost systems
• Variable costing
• Inaccurate product costs
• Standard costs
• Direct labor
• Target costing
• Self interested behavior
• Team production
• Decision rights
• Management accounting
• Business strategy
• Competitive forces
• Responsibility accounting
• Transfer pricing
• Profit center
• Investment centers
• Financial accounting
• Lecture Financial accounting
• Accounting information
• Accounting systems
• External financial reporting
• Ethical obligations
• Decision making in accounting
• Ethical reasoning
• Cognitive processes
• Ethical decision making
• Organizational ethics
• Corporate governance
• Professional judgment in accounting
• Incremental analysis
• Decision making process
• Financial statements
• Making business decision
• Business decision tool
• Lecture Accounting
• The impact of accounting disclosures on individual investors’ decision making
• Vietnam Stock Market
• The Vietnam stock market
• Vietnam Stock Exchange
• Accounting information groups
• The investors' decision making
• Product management
• Cost control
• Performance evaluation
• External reports
• Nature of costs
• Opportunity costs
• Cost variation
• Operating leverage
• Opportunity cost
• Opportunity cost of capital
• Capital budgeting
• Interest rate fundamentals
• Accounting for partnerships
• Partnership agreement
• Analyzing receivables
• Managerial accounting
• Costs for decision making
• Payroll accounting
• Pay period
• Payroll taxes