m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 14 Managerial Accounting Applications task team of YJADAWIEAML ACOJNNAY School of Business, Sum yatsen University
Lesson 14 Managerial Accounting: Applications Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun yat-sen University
Outline Segmented reporting and responsibility Accounting System Q Cost-Volume-Profit Analysis Q Budgeting and Budgetary Control Standard Costs and Variance Analysis Q Managerial Decision Making Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
2 Outline ⧫Segmented Reporting and Responsibility Accounting System ⧫Cost-Volume-Profit Analysis ⧫Budgeting and Budgetary Control ⧫Standard Costs and Variance Analysis ⧫Managerial Decision Making
Introduction Q Lets look at the XYz Company example. D A manager at XYZ Company wants to replace an old machine with a new. more efficient machine New machine. List price 900000 Annual variable expenses 800000 Expected life in years 5 old machine Original cost 720000 Remaining book value 600000 Disposal value now 150000 Annual variable expenses 1000000 Remaining life in years 5 Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3
3 Introduction ⧫ Let’s look at the XYZ Company example. A manager at XYZ Company wants to replace an old machine with a new, more efficient machine. New machine: List price 900000 Annual variable expenses 800000 Expected life in years 5 Old machine: Original cost 720000 Remaining book value 600000 Disposal value now 150000 Annual variable expenses 1000000 Remaining life in years 5
Introduction 9XYZ's sales are $2000000 per year. Q Fixed expenses, other than amortization, are S700000 per year. Should the manager purchase the new machine? Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
4 Introduction ⧫ XYZ’s sales are $2000000 per year. ⧫ Fixed expenses, other than amortization, are $700000 per year. ⧫ Should the manager purchase the new machine?
Introduction Z The manager recommends that the company not purchase the new machine since disposal of the old machine would result in a loss: Remaining book value 600000 Disposal value 150000 Loss from disposal 450000 Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5
5 Introduction ⧫ The manager recommends that the company not purchase the new machine since disposal of the old machine would result in a loss: Remaining book value 600000 Disposal value -150000 Loss from disposal 450000