tailieunhanh - Lecture Cost management: A strategic emphasis (6/e): Chapter 14 – Blocher, Stout, Juras, Cokins

Chapter 14 - Operational performance measurement: sales, direct-cost variances, and the role of nonfinancial performance measures. After studying this chapter you should be able to: Explain the essence of control systems in general and operational control systems in particular, explain the total operating-income variance for a given period, develop a general framework for subdividing the total operating-income variance into component variances,. | Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures Chapter Fourteen McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 14-2 Explain the essence of control systems in general and operational control systems in particular Explain the total operating-income variance for a given period Develop a general framework for subdividing the total operating-income variance into component variances Develop standard costs for product costing, performance evaluation, and control Learning Objectives 14-3 Learning Objectives (continued) Record standard cost flows and associated variances in a standard cost system Discuss major operating functions and the need for nonfinancial-performance indicators 14-4 Management Accounting & Control Systems Control = set of procedures, tools, and systems organizations use to monitor activities and to achieve organizational goals Management accounting & control system = core performance-measurement system of the organization, including both planning and feedback components: Management Control Systems Operational Control Systems short-term operating performance 14-5 Evaluating Short-Term Operating Performance Financial Performance Measures: Standard Cost (and Revenue) Variance Analysis Use of standard costs and flexible budgets Interpretation of variances Nonfinancial Performance Indicators: These measures can be leading indicators (predictors) of future financial performance Variance analysis applies here, too! 14-6 Short-Term Financial Control Master (Static) Budget (Chapter 10): Prepared before the start of the period Contains the following items: Budgeted sales volume Budgeted sales price per unit Budgeted variable cost per unit Budgeted total fixed costs 14-7 Short-Term Financial Control (continued) Flexible (Control) Budget: Prepared at the end of the period (after actual activity is known) Actual sales volume is used, but with . | Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures Chapter Fourteen McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 14-2 Explain the essence of control systems in general and operational control systems in particular Explain the total operating-income variance for a given period Develop a general framework for subdividing the total operating-income variance into component variances Develop standard costs for product costing, performance evaluation, and control Learning Objectives 14-3 Learning Objectives (continued) Record standard cost flows and associated variances in a standard cost system Discuss major operating functions and the need for nonfinancial-performance indicators 14-4 Management Accounting & Control Systems Control = set of procedures, tools, and systems organizations use to monitor activities and to achieve organizational goals Management accounting & control