2017 Edition – Business Final Review
Cost Accounting 1
Break even Analysis
TRATEGY IMPLEMENTATION – Balanced Scorecard
STRATEGY MONITORING – Responsibility Segments
COST ASSIGNMENT – Absorption (Full) vs. Variable (Direct) Costing
High-Low Method
Learning Curve Analysis

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NOTES
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SUMMARY
I.
NOTES
BREAKEVEN ANALYSIS 損益分岐点分析
Breakeven analysis determines the sales required (in dollars or units) to result in zero profit or loss
from operations. After breakeven has been achieved, each additional unit sold will increase net
income by the amount of the contribution margin per unit.
損益分岐点分析は利益ゼロ（損失ゼロ）という結果に必要な売上（金額あるいは単位）を決定す
る。売上が損益分岐点を超えた後は、追加販売された1単位ごとに貢献利益の金額が純利益を増加
させる。
公式
S － VC － FC
＝ OI
p･n － v･n － FC ＝ OI
S － αS － FC
＝ OI
S :
OI :
VC :
FC :
α :
p :
売上高
Operating income
変動費
固定費
変動費率
販売単価 n : 販売数量
V : 単位あたり変動費
BEP in dollars : S － VC － FC ＝ ０
Target income : S － VC － FC ＝ Target income
Margin of safety (M/S) : Sales－BEP in sales
A.
Standard Formulas 基準公式
1.
Breakeven Point in Units 損益分岐点販売量
Total fixed costs
= Breakeven point in units
Contribution margin per unit
2.
Breakeven Point in Dollars 損益分岐点売上高
a.
Multiply the breakeven units and the selling price per unit:
上記１で計算された損益分岐点販売量に販売単価を掛けて算出する。
Unit price ×Breakeven point in units  Breakeven point in dollars
b.
Contribution margin ratio approach:
貢献利益率アプローチでは、総固定費を貢献利益率で割って 、損益分岐点売上高
を計算する。
Total fixed costs
= Breakeven point in dollars
Contribution margin ratio
B.
Required Sales for a Desired Profit 求められる利益に必要な売上高
Breakeven analysis can be extended to calculate the required sales to produce a desired net
income by treating the desired net income as another fixed cost.
損益分岐点分析は必要な純利益をその他固定費として扱うことで、必要な売上高の計算が出来る。
Required sales (units or $'s) =
Total fixed cost + desired profit
C/M % or C/M per unit
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C.
Breakeven Chart 損益分岐点チャート
D.
Margin of Safety 安全余裕度
The margin of safety is the excess of sales over breakeven sales.
安全余裕度は損益分岐点売上を上回る売上高の超過分である。
1.
The margin of safety expressed in dollars is calculated as follows:
安全余裕度は以下のように計算される。
Total sales in dollars − Breakeven sales in dollars = Margin of safety in dollars
2.
The margin of safety can also be expressed as a percentage of sales:
安全余裕度は売上に対する割合(%)として表すこともできる。
Margin of safety in dollars
= Margin of safety percentage
Total sales
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II.
III.
STRATEGY IMPLEMENTATION – Balanced Scorecard 戦略実施 ― バランススコアカード
Strategy is often implemented through control processes. The balanced scorecard (generally a
senior management or executive tool) is one such control mechanism that gathers information on
multiple dimensions of an organization's performance defined by crit ical success factors necessary
to accomplish firm strategy. Critical success factors can be classified within various categories
and are commonly displayed as:
戦略はしばしば管理プロセスを通して実行される。バランススコアカード（一般的にはシニアマネ
ジメントあるはエグゼクティブ向けツール）はそのような管理メカニズムの一つである。それは企
業の戦略を達成するために必要とされる必須成功要因を定義し、組織の業績について多面的な情報
収集を行うツールである。必須の成功要因は様々なカテゴリーに分類可能で、一般的に以下のよう
に表示される。
A.
Financial Performance 財務業績
This category includes critical financial performance measures, such as current ratio or gross margin.
このカテゴリーは、流動比率あるいは粗利益といった、必須の財務業績評価を含む。
B.
Internal Business Processes 内部ビジネスプロセス
This category includes critical business process measures, such as through-put time.
このカテゴリーは、スループットタイム（業務処理時間）といった、必須のビジネスプロセス
評価を含む。
C.
Customer Satisfaction or Advancement of Innovation 顧客満足あるいは革新の向上
This category includes critical customer satisfaction measures, such as customer retention.
このカテゴリーは、顧客維持率といった、必須の顧客満足度評価を含む。
D.
Human Resource Development 人材開発
This category includes critical human resource measures, such as employee retention,
innovations, suggestions made and accepted, etc.
このカテゴリーは、雇用維持率、実施された革新の数、提案され実施された提案の数のような、
必須の人材評価を含む。
STRATEGY MONITORING – Responsibility Segments 戦略モニタリング ― 責任区分
Responsibility segments, sometimes referred to as strategic business units (SBUs), are highly
effective in establishing accountability for financial dimensions of the business. Performance
reporting for each SBU measures their financial responsibility. SBUs are often subdivided into
additional categories, including product lines, geographic areas, or customers. Specific SBU
classifications include:
責任区分は、戦略的事業単位（SBU）とも呼ばれ、事業の財務的側面の責任を設定する上で、とて
も有効である。各SBUの実績報告はそれぞれの財務責任を測定する手段となる。SBUはしばしば、
製品ライン、地域的エリア、あるいは顧客を含めた、追加カテゴリーに分類される。特定のSBU分
類は以下を含む。
A.
Cost SBU
Managers are held responsible for controlling costs in a cost SBU.
マネージャーは、費用管理に責任を負う。
B.
Revenue SBU
Managers are held responsible for generating revenues in a revenue SBU.
マネージャーは、収益に責任を負う。
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C.
Profit SBU
Managers are held responsible for producing a target profit (i.e., accountability for both
revenue and costs) in a profit SBU.
マネージャーは、目標利益の達成に責任を負う。（例、収益と費用の両方の責任）
D.
Investment SBU
Managers are held responsible for the return on the assets invested i n an investment SBU.
The return must be equal to or greater than the management minimum required rate of return.
マネージャーは、資産の投資効果に責任を負う。投資利益は最少必要利益率と同等あるいは
それ以上でなければならない。
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IV.
COST ASSIGNMENT – Absorption (Full) vs. Variable (Direct) Costing
コスト配分―全部原価計算VS直接原価計算
Absorption costing represents GAAP basis computations of gross profit, while variable (direct)
costing develops contribution margins compatible with break -even analysis.
全部原価計算はGAAPベースでの総利益の計算を表しており、直接原価計算は損益分岐点分析で使
用される貢献利益の計算に使用される。
A.
Absorption (Full Costing) Approach 全部原価計算アプローチ
Absorption costing capitalizes fixed factory overhead as part of inventory in accordance
with GAAP. Therefore, absorption costing includes direct materials, direct labor, and fixed and
variable overhead.
全部原価計算は、固定製造間接費を在庫の一部として資産勘定に計上する。
Revenue
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Net income
B.
XXX
( XXX)
XXX
( XXX)
XXX
Variable (Direct) Costing 直接原価計算
In variable (direct) costing, only variable manufacturing costs (direct materials, direct labor,
and variable factory overhead) are included in inventory. Fixed factory overhead is excluded
from inventory and treated as a period cost:
直接原価計算は、変動製造費用（直接材料、直接労働、変動製造間接費）のみ棚卸資産勘定に
含む。固定製造間接費は、期間費用として扱う。
Sales
Less: Variable costs
Contribution margin
Less: Fixed costs
Net income
XXX
( XXX)
XXX
( XXX)
XXX
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C.
Income Effect 所得効果
* Net income is higher under absorption costing because fixed manufacturing overhead cost is
deferred in inventory as inventories increase.
このケースでは、固定製造間接費用は棚卸資産が増加するにつれて繰延
となるので、純利益は全部原価計算でより高くなる。
**Net income is lower under absorption costing because fixed manufacturing overhead cost is
released from inventory as inventories decrease.
このケースでは、固定製造間接費用は棚卸資産が減少するにつれて費用
計上されるので、純利益は全部原価計算でより低くなる。
V.
HIGH-LOW METHOD 高低法
The high-low point method is used to estimate the fixed and variable portions of cost. It assumes
that the differences between costs at the highest and lowest production levels are due directly
to variable costs. Variable and fixed costs are calculated as follows:
高低法は、固定費と変動費の見積もりに使用される。最高の生産量レベルと最低の生産量レベルに
おける費用の差異を変動費用によるものと仮定する方法である。
A.
Computation of Variable Cost per Unit 単位ごとの変動コストの計算
Costs at high − Costs at low
Changes in costs
=
= Variable cost per unit
Activities at high − Activities at low
Changes in activities
B.
Computation of Total Fixed Costs 合計固定費用の計算
Total cost – (Variable cost per unit × Activity) = Fixed costs
VI.
Learning Curve Analysis 学習曲線分析
Learning curve analysis is based on the idea that per-unit labor hours will decline as worker become
more familiar with a specific task or production process.
学習曲線分析は、労働者が作業工程に熟練することによって製品1単位あたりの作業時間が減少し
ていくことである。
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NOTES
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MULTIPLE-CHOICE
QUESTIONS
QUESTION 1
In Year 1, its first year of operations, Duke Manufacturing incurred the following costs when it produced
200,000 and sold 160,000 units of its only product, Blue:
Manufacturing costs—Fixed
$360,000
Variable
320,000
Selling and admin costs—Fixed
180,000
Variable
80,000
How much lower would Duke's net income for Year 1 have been if it had used variable costing instead of
absorption costing?
1. $72,000
2. $54,000
3. $68,000
4. $94,000
QUESTION 2
Presented below is the production data for the first six months of the year for mixed costs incurred by
Mouton Corporation:
Month
Cost
Units
January
$14,700
1,800
February
15,200
1,900
March
13,700
1,700
April
14,000
1,600
May
14,300
1,500
June
13,100
1,300
July
12,800
1,100
August
14,600
1,500
Mouton Corporation uses the high-low method to analyze mixed costs. Variable cost per unit and fixed
cost are respectively:
1.
2.
3.
4.
VC
$1.00
$3.00
$1.00
$2.00
FC
$13,100
$ 9,500
$12,800
$15,200
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QUESTION 3
William Company is experiencing profit problems and is analyzing its manufacturing cost behavior, which
it does not really understand. Which of the following statements is/are correct with respect to cost volume
profit analysis?
I.
An assumption of cost volume profit analysis is that all costs behave in a nonlinear fashion in relation
to production.
II. An assumption of cost volume profit analysis is that selling prices vary no more than 10%, up or
down, within the relevant range of William's production.
III. Contribution margin is defined as revenue less fixed costs.
1.
2.
3.
4.
I, II, and III are correct.
I only is correct.
II and III only are correct.
None of the listed choices are correct.
QUESTION 4
Lampassas Corporation manufactures product Lam at its manufacturing facility. At annual sales of
$900,000 for Year 1, product Lam had the following unit sales price and costs:
Sales price
Prime cost
Manufacturing overhead:
Variable
Fixed
Selling & administrative costs:
Variable
Fixed
Profit
$ 20
6
1
7
1
3
$ 2
What was product Lam's breakeven point in dollars?
1. $500,000
2. $750,000
3. $630,000
4. $900,000
QUESTION 5
Belton Corporation is considering manufacturing and selling a new product. Based on potential sales of
1,000 units per year, the new product has estimated traceable costs of $1,200,000. What is the price that
Belton must charge to obtain a 20% profit margin on sales?
1. $2,000
2. $1,200
3. $1,500
4. $1,000
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＜SOLUTIONS＞
Question 1
Explanation
Choice 1 is correct.
In this question, they want to know what net income would have been for a company under both
absorption costing and variable (or direct) costing. The company was in its first year of production, so
there was no beginning inventory, but there was an ending inventory of 40,000 units (200,000 160,000).
The difference between absorption costing and variable costing is in the treatment of fixed
manufacturing costs. With absorption costing, fixed manufacturing costs are consi dered a product
cost and are included in inventory; with variable costing, fixed manufacturing costs are considered
period costs and are expensed in the period incurred. With either method, fixed selling and
administrative costs are considered a period cost.
In this question, fixed manufacturing costs were $360,000. Because 200,000 units were produced,
fixed manufacturing cost per unit was $1.80 per unit ($360,000 / 200,000). 40,000 units remained in
ending inventory, so the inventory cost attributable to the fixed manufacturing costs if absorption
costing had been used would have been $72,000 ($1.80 x 40,000). This cost would have been
expensed in Year 1 if variable costing had been used. Net income for Year 1 would thus have been
$72,000 lower if variable costing had been used.
Question 2
Explanation
Choice 2 is correct.
In this question, they want to know the cost function from a set of data for units and costs using the
high-low method.
The high level is the 1,900 units in February, and the low level is the 1,100 units in July. The costs for
those months are $15,200 and $12,800. None of the other months are relevant because the high -low
method uses only the high and low months.
The slope of the line is the change in cost of $2,400 ($15,200 - $12,800) divided by the change in
activity of 800 (1,900 - 1,100), or $3 per unit.
The total cost of $15,200 less the variable cost of $5,700 for those units ($3 x 1,900), yields fixed cost
of $9,500.
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Question 3
Explanation
Choice 4 is correct.
The question requires evaluation of the validity of a series of statements about cost volume profit
analysis. "None of the above" is available if none of the statements are correct.
Statement I says that an assumption of cost volume profit analysis is that al l costs behave in a
nonlinear fashion in relation to production. Actually, the assumption is that all costs behave in a linear,
not nonlinear, fashion. Statement I is incorrect.
Statement II says that an assumption of cost volume profit analysis is that selling prices vary no more
than 10%, up or down, within the relevant range of William's production. Actually, the assumption is
that selling prices are unchanged. Statement II is incorrect.
Statement III says that contribution margin is defined as revenue less fixed costs. Contribution
margin is actually defined as revenue less variable costs. Statement III is incorrect.
Question 4
Explanation
Choice 2 is correct.
The question requires computation of the breakeven point in dollars for a product.
other data are provided.
Ce rtain cost and
Annual sales are $900,000, and the sales price is $20 per unit. That means 45,000 units were sold.
$900,000 is one of the answers, but it cannot be the correct answer because there was a profit of $2
per unit and the question is asking for breakeven.
On a unit basis, total fixed overhead was $10 ($7  $3).
$450,000.
At 45,000 units, total fixed costs were
To determine the breakeven point, it is necessary to determine the variable cost per unit. Prime cost
(direct materials and direct labor) is given, and so are variable overhead and variable selling and
administrative costs. Total variable costs are thus $8 ($6  $1  $1).
The breakeven equation for this question can be written as 20X  8X  450,000, where X is the units
sold at the breakeven point. Solving for X produces 37,500 units at $20 per unit, or $750,000 ($20 
37,500).
Question 5
Explanation
Choice 3 is correct.
The question requires computation of the target price for a new product.
are provided.
Certain cost and other data
Traceable costs are 80% of sales. If traceable costs are $1,200,000, sales are $1,500,000 ($1,200,000
/ .80) and profit on sales is 20% ($1,500,000 - $1,200,000 = $300,000). If projected unit sales are
1,000 units, then the unit price would be $1,500.
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B4 Simulation 2 Task 1 – Variable Costing
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2017 Edition – Business Final Review
Solution
1. 30,000
The breakeven point in units can be calculated by dividing the fixed costs of $810,000 by the
contribution margin per unit of $27 ($90 sales price $63 variable costs). $810,000 / $27 = 30,000 units.
2. $2,700,000
The breakeven point in dollars can be calculated by dividing the fixed costs of $810,000 by the
contribution margin ratio of 30% ($27 contribution margin/$90 sales price per unit). $810,000 / 0.30 =
$2,700,000.
3. 35,000
The units needed to earn the desired profit can be calculated by tak ing the sum of fixed costs
($810,000) and the desired pretax profit ($135,000) and dividing it by the contribution margin of $27 .
($810,000 + $135,000) / $27 = 35,000 units.
4. $3,150,000
The sales dollars needed for the desired profit can be calculated by dividing the fixed costs of
$810,000 plus the desired profit of $135,000 by the contribution margin ratio of 30% ($27 contribution
margin/$90 sales price per unit). ($810,000 + $135,000) / 0.30 = $3,150,000.
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5. No Impact
Any change in fixed costs will not impact the contribution margin, as this margin is equal to sales per
unit less variable costs per unit.
6. Increase
A decrease in both sales and variable costs of $10 per unit will equate to an $80 sale price and $53 in
variable costs per unit. The contribution margin stays the same at $27, but the contribution margin
ratio will increase to 33.75% ($27 / $80 = 33.75%).
7. Increase
If the desired pretax profit increases, more units will need to be sold to achieve that profit.
equate to more total variable costs incurred.
More units
8. No impact
The calculation of breakeven in units is not dependent on the tax rate.
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NOTES
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