Product CostsDirect MaterialsPrime Costs-- Direct LaborConversion Costs Variable Manufacturing Overhead-- Fixed Manufacturing Overhead-- Period CostSelling Expenses
Administrative Expenses

Margin of Safety[M/S]
M/S = Total Sales - Break-even Sales

Manufacturing Co. Income Statements

Sales $600,000 CGS: Finished goods, Jan.1,2000 $225,000 Cost of goods mfd. $400,000 Cost of goods availale for $625,000 Sale Finished goods, Dec.1,2000 $220,000 Cost of goods sold ($405,000) Gross margin $195,000 Selling & administrative expense ($160,000) Net income $35,000

Raw Material Inventory Work-in-Process Inventory Finished Goods Inventory Beginning Balance Beginning Balance Beginning Balance +Purchases +Raw Material,Labor,OH Used +Goods Finishe(From WIP) =Available for Use =Available to Finish =Available for Sale -Raw Material Used(To WIP) -Goods Finished(To FG) -CGS =Ending Balance =Ending Balance =Ending Balance

• Income Equation

  Sales = Variable Expenses + Fixed Expenses + Net Income

• Contribution Margin
  • Contribuion Margin = Sales - Variable Costs

    Yamato Co.[Example]

    	Per unit	%
    Selling price	$1.20	100.00
    Variable cost	$.60	(50.00)
    Contribution margin	$.60	50.00
    Total fixed cost	$300

    Sales in dollars(S)=0.5*S + $300 + 0
    S = $300 / 0.5 = $600

  • Unit Contribution Margin = Unit Sales Prise - Unit Variable Costs

    $1.20*Sales in units(U)=$0.6*U + $300 + 0
    $0.6*U = $300
    U = $300 /$0.6 =500 units

  • Contribution Margin Ratio = Unit Contribution Margin / Unit Sales Ratio = Total Contribution Margin / Total sales
  • Variable Cost Ratio = Variable Cost / Sales
  • Break-even point in units = Fixed Expenses / Unit Contribution Margin
  • Break-even point in Dollars = Fixed Expenses / Unit Contribution Margin Ratio
  • Unit sales to achieve a desired Profit = (Fixed Costs + Desired Net Income) / Unit Contribution Margin

    Sales in dollars	=(Fixed costs + Net income)/Contribution margin ratio
    	= ($300+0) / 0.5 = $600

    
    

    Sales in units	=(Fixed costs + Net income)/Unit Contribution margin
    	= ($300+0) / $0.6 = $500

• Incremental Costs
• Avoidable Costs
• Marginal Costs
• Out-of-Pocket Costs
• Opportunity Costs
• Irrevant Costs
• Sunk Costs

Absorption costingでは,全ての製造費用が在庫においても計上される.
一方,Direct costingでは,変動費のみが計上され,固定費は計上されない.
Direct costingは内部報告用にのみ利用され,GAAPでは受け入れられない.
在庫の計算方法の比較

	Direct Costing	Absorption Costing
Direct materials	$##,###	$##,###
Direct labor	$##,###	$##,###
Variable manufacturing overhead	$##,###	$##,###
Fixed manufacturing overhead	--	$##,###
Variable selling and administrative costs	--	$##,###
Fixed selling and administrative costs	--	$##,###