1、外文文献翻译译文原文PROCESSCOSTINGANDMANAGEMENTACCOUNTINGINTODAYSBUSINESSENVIRONMENTITSTHECLASSIC“EITHER/OR”PROPOSITIONINMANUFACTURINGSETTINGS,WHEREASSEMBLYPRACTICESGENERALLYFOLLOWONEOFTWOTRACKSJOBORPROCESSTHEDIFFERENCEBETWEENTHETWOISTHEABILITYTOTRACEINPUTCOSTSTOFINISHEDGOODSAMANUFACTURINGPROCESSTHATREQUIRESS
2、PECIFICAMOUNTSOFRAWMATERIALSANDLABORTOCOMPLETEAUNITISTHEJOBMETHODWITHJOBCOSTING,THEAMOUNTOFRAWMATERIALSANDLABORPLACEDINTOPRODUCTIONCANBETRACEDORSPECIFICALLYIDENTIFIEDTOTHEFINISHEDGOODAPROCESSMETHOD,ONTHEOTHERHAND,INVOLVESTHEMANUFACTUREOFLARGEORMASSQUANTITIESOFIDENTICALUNITSANDISMORECOMPLEXBECAUSESPE
3、CIFICAMOUNTSOFRAWMATERIALSANDLABORCANTBETRACEDTOFINISHEDGOODSINAPROCESSMANUFACTURINGENVIRONMENT,RAWMATERIALS,LABOR,ANDOVERHEADPLACEDINTOPRODUCTIONNEEDTOBEALLOCATEDTOINVENTORYGIVENTHEDIFFERENCEINTHEABILITYTOTRACEINPUTCOSTSOFTHESETWOMETHODS,THEVALUATIONSOFWORKINPROCESSANDFINISHEDGOODSINVENTORIESDIFFER
4、SIGNIFICANTLYTHETOPICOFPROCESSCOSTINGASOFTENPRESENTEDINTEXTBOOKSISSIMPLIFIEDANDDOESNTREFLECTINDUSTRYPRACTICETHEPRIMARYDIFFERENCEISTHETEXTBOOKASSUMPTIONTHATACTUALCOSTSINCURREDEACHMONTHAREREFLECTEDINVALUINGINVENTORYANDCOSTOFGOODSSOLDINPRACTICE,PREDETERMINEDSTANDARDCOSTSNOTACTUALONESAREUSEDVALUATIONAND
5、COSTINGAREIMPORTANTASPECTSWHENDISCUSSINGSTANDARDSBUTPOTENTIALLYTHEMOSTSIGNIFICANTUSEFORSTANDARDSISASASTRATEGICCOSTMANAGEMENTTOOL,ANAPPROACHTHATSEITHERIGNOREDORLIMITEDTOADESCRIPTIONINMOSTTEXTBOOKSTHUS,MANYMANAGEMENTACCOUNTANTSAREUNTRAINEDORUNAWAREOFTHEMANYPOTENTIALUSESOFSTANDARDSASAMANAGEMENTTOOLTOCL
6、ARIFYHOWPROCESSCOSTINGISDONEININDUSTRYANDHOWTHEUSEOFSTANDARDSCANFACILITATESTRATEGICCOSTMANAGEMENT,WECONDUCTEDINTERVIEWSWITHMANAGERSATTHREECONSUMERPACKAGEDGOODSMANUFACTURERSTHEHOMOGENEOUSNATUREOFTHEPACKAGEDGOODSINDUSTRYPROVIDESANIDEALAPPLICATIONOFPROCESSCOSTINGTOPROVIDEABALANCEDPERSPECTIVE,WESELECTED
7、THREECOMPANIESVARIEDINSIZEANDCOMPLEXITYALARGEMULTIBILLIONDOLLARCOMPANY,A500MILLIONCOMPANY,ANDASMALLCOMPANYALLOFTHEMUSEPROCESSCOSTINGANDSTANDARDSINAMANNERRANGINGFROMSTRAIGHTFORWARDTOCOMPLEXTOHELPTHEMMANAGETHEIRBUSINESSPROFITABLYTHEORYOFPROCESSCOSTINGPROCESSCOSTINGISDEFINEDASANACCOUNTINGMETHODOLOGYTHA
8、TTRACKSTHEPORDUCTIONOFLARGEQUANTITIESOFIDENTICALUNITSATTHEENDOFTHEPERIOD,UNITSINPRODUCTIONWORKINPROCESSANDCOMPLETEDUNITSFINISHEDGOODSMUSTBEVALUEDFORTHEBALANCESHEETANDINCOMESTATEMENTASREQUIREDFOREXTERNALREPORTINGAPOPULARTEXTBOOKAPPROACHINCLUDESAFIVESTEPMETHODFORALLOCATINGCOSTSTOINVENTORYSTEP1SUMMARIZ
9、ETHEFLOWOFUNITSINPROCESSATTHEBEGINNINGOFTHEPERIODANDPLACEDINTOPRODUCTIONSTEP2COMPUTEOUTPUTUNITSCOMPLETEDANDUNITSINPROCESSATTHEENDOFTHEPERIODSTEP3SUMMARIZETOTALMANUFACTURINGCOSTSINCURREDDURINGTHEPERIODSTEP4COMPUTEMANUFACTURINGCOSTSPERUNITSTEP5ASSIGNMANUFACTURINGCOSTSTOUNITSCOMPLETEDANDENDINGWORKINPRO
10、CESSTHETEXTBOOKFOCUSISCLEARLYONTHE“CALCULATION”EXERCISESANDPROBLEMSFOCUSONTHEMATHEMATICALCOMPLETIONOFALLOCATINGMANUFACTURINGCOSTSTOENDINGWORKINPROCESSANDFINISHEDGOODSUSINGTHEFIVESTEPMETHODTHEDISCUSSIONOFPROCESSCOSTINGGENERALLYSTOPSHERELITTLEORNOSIGNIFICANTDISCUSSIONISFOUNDINTEXTBOOKSONHOWMANAGEMENTU
11、SESPROCESSCOSTINGTOMANAGETHEMANUFACTURINGOPERATIONSTHEEMPHASISISONPROVIDINGVALUESFORWORKINPROCESSANDFINISHEDINVENTORYFOREXTERNALREPORTINGTHETEXTBOOKSGENERALLYPLACETHEMANAGEMENTACCOUNTANTINATRADITIONALCOSTACCOUNTINGROLE,FOCUSINGONTHECALCULATIONOFRESULTSFORFINANCIALSTATEMENTSLITTLEDISCUSSSIONISDEVOTED
12、TOINTERPERSONALANDANALYTICAL/STRATEGICMANAGEMENTSKILLSSEEFIGURE1THEROLEOFTHEMANAGEMENTACCOUNTANTINAMANUFACTURINGFIRMTHATUTILIZESPROCESSCOSTINGISBESTLEVERAGEDWHENTHEACCOUNTANTISFULLYENGAGEDINALLPHASESOFTHEPROCESSTHISREQUIRESSKILLSWELLBEYONDTHETRADITIONALCOSTACCOUNTINGROLEINAPROCESSCOSTINGENVIRONMENT,
13、THEMANAGEMENTACCOUNTANTWILLBEREQUIREDTOWORKCROSSFUNCTIONALLYTOGATHERSTANDARDINFORMATION,COMMUNICATERESULTS,ANDEVALUATEPERFORMANCEINPARTICULAR,INTERACTIONSWITHTHEOPERATIONSANDSALESDEPARTMENTSWILLBECRITICALTOTHEDEVELOPMENTOFACCURATESTANDARDSTODAYSMANAGEMENTACCOUNTANTMUSTHAVEASOLIDUNDERSTANDINGOFTHEMAN
14、UFACTURING,SALES,ANDDISTRIBUTIONPROCESSANDAGOODHANDLEONWHATINFORMATIONISRELEVANTTOSUPPORTMANAGEMENTDECISIONMAKINGINSHORT,TODAYSMANAGEMENTACCOUNTANTHASEVOLVEDTOTHATOFASTRATEGICPARTNERINTHEORGANIZATIONWHATTHEINTERVIEWSTAUGHTUSOURINTERVIEWSWITHTHREECONSUMERPACKAGEDGOODSCOMPANIESALLOWEDUSTOGAININSIGHTIN
15、TOTHEACTUALMETHODOFVALUATIONANDCOSTINGUSEDAND,MOREIMPORTANTLY,HOWTHISINFORMATIONISEMPLOYEDFROMASTRATEGICCOSTMANAGEMENTPERSPECTIVESPECIFICALLY,FOREACHCOMPANYTHEEMPHASISWASONPROCESSCOSTINGMETHODOLOGYINVENTORYVALUATION,VARIANCEANALYSIS,ANDSTRATEGICMANAGEMENTAPPLICATIONTHECOMMONTHEMEAMONGTHETHREECOMPANI
16、ESWASTHATEACHONESPROCESSCOSTINGPRACTICESAREDIFFERENTFROMWHATSTAUGHTINMANAGEMENTTEXTSALLTHREECOMPANIESWORKWITHSTANDARDCOSTSRATHERTHANACTUALCOSTSALLTHREEFOCUSONTHESTRATEGICUSEOFSTANDARDS,INCLUDINGTHEQUICKCOMMUNICATIONOFRESULTSANDTHEIMMEDIATEINVESTIGATIONOFSIGNIFICANTVARIANCESTHETEXTBOOKEMPHASISONINVEN
17、TORYVALUATIONSTAKESABACKSEATTOCOMMUNICATINGNECESSARYBUSINESSCHANGESANDACTINGONTHEMBYEXAMININGSTANDARDSANDCOMPARINGTHEMTOTHEBUDGETFIGURE1IMPLICATIONSFORTHEROLEOFTODAYSMANAGEMENTACCOUNTANTTHEINTERVIEWSALSOPROVIDEDINSIGHTASTOWHYSTANDARDSAREPREFERREDOVERACTUALRESULTSFORONE,COMMUNICATINGRESULTSUSINGPREDE
18、TERMINEDSTANDARDSISMUCHFASTERTHANWAITINGTOACCUMULATEACTUALCOSTDATAMOREOVER,STANDARDSPROVIDECONSISTENCYACROSSREPORTINGPERIODSTHATMAYFLUCTUATEMONTHTOMONTHMOSTIMPORTANTLY,STANDARDSALLOWDEPARTMENTSTOWORKTOGETHERUSINGTHESAMEPERFORMANCEMEASURESACROSSTHECOMPANYASSHOWNINFIGURE2,REGARDLESSOFACOMPANYSSIZE,THE
19、SECHARACTERISTICSAREVITALTOORGANIZATIONSINTODAYSBUSINESSENVIRONMENTFIGURE2THEBENEFITSOFSTANDARDCOSTINGHOWISSTANDARDCOSTINGMOSTASVANTAGEOUSTODAYFACILITATESCROSSFUNCTIONALCOMMUNICATIONENSURESCONSISTENCYINMEASURING,REPORTING,ANDMANAGINGCOSTSACROSSTHEPROVIDES“REALTIME”FEEDBACKOFRESULTSSTRATEGICPARTNERKE
20、YDECISIONSUPPORTTOMANAGEMENTEFFECTIVELYCOMMUNICATESCROSSFUNCTIONALLYSTRONGPROCESSUNDETSTANDINGANDFOCUSONRELEVANTINFORMATIONORGANIZATIONTHEMULTIBILLIONDOLLARCOMPANYTHELARGECOMPANYSAPPLICATIONOFPROCESSCOSTINGISTHEMOSTCOMPLEX,DRIVENBYSUBSTANTIALREVENUES,THELARGENUMBEROFPRODUCTOFFERINGS,ANDTHESOPHISTICA
21、TEDUSEOFPROCESSCOSTINGINFORMATIONINMANAGINGTHEBUSINESSEFFICIENTLYANDPROFITABLYTHISAPPROACHUTILIZESTWOPERSPECTIVESOPERATIONSANDPRODUCTPROFITABILITYASTHEFOLLOWINGDISCUSSIONSWILLSHOW,THESTEPSNECESSARYTOCOMPLETESTANDARDCOSTINGINAPROCESSCOSTINGENVIRONMENTARENTREALLYNEWTHEKEYISTHEVITALROLETHEMANAGEMENTACC
22、OUNTANTPLAYSINTODAYSBUSINESSENVIRONMENTTOWORKCROSSFUNCTIONALLYTOGATHERINFORMATION,PERFORMANALYSES,ANDCOMMUNICATERESULTSTHISALLOWSTHEORGANIZATIONTOREACTTOMARKETPLACEORCUSTOMERCHANGESMORERAPIDLY,TORECOGNIZECOSTOVERRUNSSOONER,AND,ULTIMATELY,TOALIGNTHECOMPANYSSTRATEGICOBJECTIVESCLOSERTOITSDAYTODAYACTIVI
23、TIESFIGURE3FIGURE3ANUNBROKENCYCLETHEPROCESSFORDEVELOPINGPROCESSCOSTINGSTANDARDSREFLECTSTHEPLANNINGPROCESSSTANDARDS,HOWEVER,PROVIDEREALTIMEFEEDBACKTOMANAGERSRATHERTHANHAVINGTOWAITFORTHECLOSEOFTHEACCOUNTINGCYCLEAPPLYINGSTANDARDCOSTSINAGLOBALFIRMINTHEMULTIBILLIONDOLLARCOMPANY,THEOPERATIONSGROUPISRESPON
24、SIBLEFORSETTINGTHESTANDARDMANUFACTURINGINPUTCOSTSPERUNIT,ANDTHEPRODUCTPROFITABILITYGROUPISCHARGEDWITHESTABLISHINGSTANDARDVOLUMESTHATAREUSEDINCONJUNCTIONWITHTHEINPUTCOSTSLETSEXAMINETHISPROCESSINMOREDETAILINOPERATIONS,THESTANDARDINPUTCOSTSAREBASEDONASETOFASSUMPTIONSTHATAREUPDATEDEACHYEARDURINGTHECOMPA
25、NYSANNUALBUDGETINGCYCLETOMAKETHEINPUTCOSTSASACCURATEASPOSSIBLE,SEVERALDIVISIONSWITHINTHEOPERATIONSGROUPAREINVOLVEDINDEVELOPINGSTANDARDSUPDATINGSTANDARDCOSTSBEGINSWITHANALYZINGTHEPRIORYEARSACTUALCOSTSFOREACHINPUTDIRECTMATERIALS,DIRECTLABOR,ANDOVERHEADEXAMINEPRIORYEARSACTUALRESULTSCONDUCTVARIANCEANALY
26、SISPROVIDE“REALTIME”FEEDBACKONACTUALRESULTSIDENTIFYEFFICIENCIESINCORPORATEKNOWNCHANGESCOMMUNICATESTANDARDSNOTSURPRISINGLY,ANALYZINGINPUTCOSTSBECOMESHIGHLYCOMPLEXGIVENTHELARGEANDDIVERSENATUREOFTHECOMPANYTHEANALYSISINCLUDESREVIEWINGDOZENSOFDIRECTMATERIALINPUTS,SEVERALLEVELSOFLABORTIEDTOTHOUSANDSOFEMPL
27、OYEESWITHVARIOUSBENEFITCOSTCOMBINATIONS,ANDMANYMANUFACTURINGLOCATIONS,WHICHINVOLVEMULTIPLEFACILITYTYPESANDCONFIGURATIONSALLOFTHESEINPUTSAREEXAMINEDCLOSELYFORCOSTEFFICIENCYANDAREAPPLIEDCONSISTENTLYACROSSTHECOMPANYWHENTHEANALYSISOFLASTYEARSINPUTCOSTSISCOMPLETE,THESEAMOUNTSAREADJUSTEDBASEDONKNOWNCHANGE
28、SRELATEDTOTHECURRENTYEARSTANDARDCOSTSARETHENCALCULATEDONAPERUNITBASIS,DIVIDINGTHETOTALBUDGETEDINPUTCOSTSBYTHEBUDGETEDNUMBEROFPRODUCTIONUNITS,WHICHAREPROVIDEDBYTHEPRODUCTPROFITABILITYGROUPONCECOMPLETE,THESEBUDGETEDSTANDARDSAREAGREEDUPONBYTHEOPERATIONSDIVISIONMANAGERS,THEPRODUCTPROFITABILITYMANAGERS,A
29、NDTHECOMPANYSTOPMANAGEMENTASTHEBASISFORCOMPARISONTHROUGHOUTTHEBUDGETPERIODAHIGHLYSOPHISTICATEDREPORTINGSYSTEMSTANDARDCOSTSAREAPPLIEDTOPRODUCTIONVOLUMEEACHMONTHTODETERMINEINVENTORYVALUESTHELARGECOMPANYSREPORTINGSYSTEMHASTHECAPABILITYTOCALCULATEACTUALPRODUCTIONVOLUMEBASEDONINPUTSUSEDDURINGTHEPERIODADD
30、ITIONALLY,EACHPLANTCOMPLETESAPHYSICALINVENTORYMONTHLYTOVERIFYTHATTHEREPORTINGSYSTEMHASCALCULATEDANACCURATEPRODUCTIONVOLUMECOSTOFGOODSSOLDISBASEDONACTUALUNITSSOLDMULTIPLIEDBYTHEUNITSTANDARDCOSTDEVELOPEDDURINGTHEBUDGETCYCLEFINISHEDGOODSONHANDATTHEENDOFTHEPERIODAREALSOCALCULATEDUSINGTHEACTUALPRODUCTION
31、VOLUMEMULTIPLIEDBYSTANDARDUNITCOSTTHECOMPANYSREPORTINGSYSTEMCANALSODETERMINESTAGESOFPRODUCTIONINPROCESSUNITSARECALCULATEDATEACHSTAGEANDMULTIPLIEDBYSTANDARDUNITCOSTSTOVALUEENDINGWORKINPROCESSTHERESPONSIBILITYFORDEVELOPINGCOSTESTIMATESFORRAWMATERIALS,LABOR,ANDOVERHEADRESTSWITHTHEOPERATIONSGROUP,WHICHI
32、STYPICALOFMOSTCOMPANIESTHISSIZETHUS,OPERATIONSISRESPONSIBLEFORCOSTEFFICIENCYTHISGROUPPERFORMSAMONTHLYVARIANCEANALYSISTOEVALUATEACTUALRESOURCECONSUMPTIONVSSTANDARDEXPECTATIONSTHESEVARIANCESARETHENCOMMUNICATEDTHROUGHOUTTHEORGANIZATIONINADDITION,OPERATIONSMANAGERSREVIEWTHEVARIANCESBETWEENACTUALANDSTAND
33、ARDRESULTSINFOURCATEGORIESRAWMATERIALSPRICE,RAWMATERIALSUSEDINPRODUCTION,DIRECTLABOR,ANDMANUFACTURINGOVERHEADIFTHEMANAGERSDETERMINETHATTHEVARIANCEISSIGNIFICANT,ANADJUSTMENTISMADETOTHEINCOMESTATEMENTTHATMONTHIFTHEVARIANCEISRELATEDTOPRODUCTIONVOLUMEASCOMPAREDTOBUDGETEXPECTATIONS,THEVARIANCEISREVIEWEDW
34、ITHPRODUCTPROFITABILITYMANAGEMENTTODETERMINEWHETHERITSEXPLAINEDBYTIMINGORIFITSREALIFITSREAL,ADJUSTMENTSAREMADETOTHATMONTHSINCOMESTATEMENTASDISCUSSED,OPERATIONSISRESPONSIBLEFORALLVARIANCEADJUSTMENTSBECAUSEITSDIVISIONSCONTROLTHEAMOUNTOFDIRECTMATERIALSANDLABORUSEDINPRODUCTIONOVERHEADSUCHASFACILITIESAND
35、EQUIPMENTCANTBEIMPACTEDINTHECURRENTREPORTINGPERIODDIRECTMATERIALSAREPURCHASEDATTHEOVERALLCOMPANYLEVELTOTAKEADVANTAGEOFLARGEVOLUME,CONTRACTUALPRICEDISCOUNTSTHEREFORE,THEVARIANCEADJUSTMENTSARERECORDEDATTHEPOINTOFCONTROLOPERATIONSANDPURCHASINGINEACHOFTHEAREASDESCRIBED,THESIZEOFTHEVARIANCEWILLDICTATEIFA
36、DJUSTMENTSARENECESSARYMONTHLY,QUARTERLY,ORANNUALLYTHESTANDARDINPUTCOSTORRAWMATERIALAMOUNT,HOWEVER,WILLBEADJUSTEDONLYANNUALLYASPARTOFTHEYEARLYBUDGETCYCLETOMAINTAINCONSISTENCYANDACCOUNTABILITYPRODUCTPROFITABILITYMANAGEMENTTHELARGECOMPANYAGIANTINTHEPACKAGEDFOODINDUSTRYHASABROADARRAYOFPRODUCTOFFERINGSEA
37、CHPRODUCTLINEISSEPARATEDINTOADIVISIONFORREPORTINGPURPOSESNATURALLY,MANAGEMENTBELIEVESTHEFOCUSONINDIVIDUALPRODUCTPROFITABILITYWILLLEADTOGREATEROVERALLCOMPANYPERFORMANCETHESTANDARDMANUFACTURINGINPUTCOSTSGENERATEDBYTHEOPERATIONSDIVISIONSARETHESAMESTANDARDSTHEPRODUCTPROFITABILITYGROUPUSESTHEDIVISIONSARE
38、EXPECTEDTOMANAGETHEPRODUCTLINEBASEDONTHESTANDARDCOSTSDEVELOPEDBYTHEOPERATIONSGROUPANDTHESTANDARDVOLUMESDEVELOPEDBYTHEPRODUCTPROFITABILITYGROUPOPERATIONS,PRODUCTPROFITABILITY,ANDTOPMANAGEMENTMUSTALLAGREEONTHESESTANDARDSEACHPRODUCTDIVISIONCOMPLETESAMONTHLYVARIANCEANALYSISCOMPARINGSTANDARDSTOACTUALRESU
39、LTSVOLUMEVARIANCESTHATARESIGNIFICANTREQUIREINPUTFROMPRODUCTDIVISIONMANAGEMENTTODETERMINEIFTHEYREEXPECTEDTOCONTINUEORAREDUETOTIMINGSIZABLEVOLUMEVARIANCESTHATARENTEXPECTEDTOCHANGEWOULDHAVEANIMMEDIATEIMPACTONCOSTOFGOODSSOLDMOREOVER,THECOSTSTANDARDSDEVELOPEDBYTHEOPERATIONSGROUPAREUSEDCOMPANYWIDEFORPERFO
40、RMANCEEVALUATIONINOPERATIONS,FOREXAMPLE,PERFORMANCEEVALUATIONISMEASUREDBYMANUFACTURINGEFFICIENCYBOTHTHEAMOUNTOFINPUTSUSEDANDTHECOSTINCURREDTOPRODUCEUNITSLIKEWISE,THEGROUPRESPONSIBLEFORDEVELOPINGVOLUMESTANDARDSISEVALUATEDONTHEVOLUMEANDPROFITABILITYOFITSRESPECTIVEPRODUCTLINESINPULLINGEVERYTHINGTOGETHE
41、R,TOPMANAGEMENTEVALUATESEACHDIVISIONUSINGTHESAMESTANDARDSFORDIFFERENTPURPOSESOPERATIONSISEVALUATEDONCOSTCONTROLTHEPRODUCTPROFITABILITYGROUPISEVALUATEDONTHEPROFITABILITYOFEACHPRODUCTLINETOENSUREPROPERPRICING,THEACHIEVEMENTOFSALESGOALS,MARKETPRESENCE,ANDOVERALLCOMPANYPROFITABILITYTHE500MILLIONCOMPANYP
42、ROCESSCOSTINGATTHE500MILLIONCOMPANYISSIGNIFICANTLYLESSCOMPLEXTHANATTHELARGECOMPANY,ALTHOUGHTHERESSOMEOVERLAPINMETHODOLOGYNEVERTHELESS,SOMECHARACTERISTICSAREUNIQUETOTHELARGECOMPANY,SUCHASPROPERCOSTINGFOREFFICIENCYANDEFFECTIVEVOLUMEESTIMATESBYPRODUCTDEVELOPINGSTANDARDCOSTSANDSTANDARDPRODUCTIONVOLUMESI
43、SSIMILARBETWEENTHELARGECOMPANYANDTHE500MILLIONCOMPANYINTHELATTER,THEOPERATIONSGROUPHASTHEPRIMARYRESPONSIBILITYFORDEVELOPINGSTANDARDMANUFACTURINGINPUTCOSTSTHEVARIANCESBETWEENACTUALANDSTANDARDRESULTSAREREVIEWEDINFOURCATEGORIESRAWMATERIALSPRICE,RAWMATERIALSUSEDINPRODUCTION,DIRECTLABOR,ANDMANUFACTURINGO
44、VERHEADBUDGETAMOUNTSFOREACHCOSTCATEGORYAREDEVELOPEDBASEDONANANALYSISOFTHEPRIORYEARSACTUALCOSTS,ANDADJUSTMENTSAREMADEFORKNOWNCHANGESTOINPUTCOSTCATEGORIESTHESEBUDGETAMOUNTSTHENBECOMETHEBASISFORTHESTANDARDCOSTSUSEDINPROCESSCOSTINGASWITHTHELARGECOMPANY,THESALESGROUPINTHEMEDIUMSIZEDFIRMISRESPONSIBLEFORDE
45、VELOPINGTHEVOLUMESTANDARDOPERATIONSTHENUSESTHISVOLUMEESTIMATETOCREATETHECOSTSTANDARDSTANDARDCOSTSPERUNITAREUTILIZEDFORALLOCATINGCOSTSTOINVENTORYANDMANAGINGTHEOPERATIONSDIVISIONFORINVENTORYVALUATION,UNITSSOLDINTHECURRENTPERIODARETRACKEDONANACTUALPHYSICALCOUNTBASISMANUFACTURINGCOSTSAREALLOCATEDTOTHESE
46、FINISHEDUNITSBYMULTIPLYINGSTANDARDINPUTCOSTSPERUNITBYTHENUMBEROFUNITSSOLDUNSOLDFINISHEDUNITSAREALSOTRACKEDBYPHYSICALCOUNTSMANUFACTURINGCOSTSAREALLOCATEDTOTHESEFINISHEDGOODSBYMULTIPLYINGTHESTANDARDCOSTSPERUNITBYTHENUMBEROFFINISHEDUNITSONHANDPRODUCTIONTHATSINPROCESSATTHEENDOFTHEPERIODISESTIMATEDBASEDO
47、NMATERIALSANDLABORUSEDDURINGTHEPERIODOPERATIONSMANAGEMENTTHENESTIMATESTHEPERCENTAGECOMPLETEFORTHOSEUNITSINPRODUCTIONATTHEENDOFTHEPERIODBASEDONTHEESTIMATEDVOLUMEANDPERCENTAGE,COSTSAREALLOCATEDTOTHESEUNITSBYMULTIPLYINGTHESTANDARDCOSTSPERUNITBYTHENUMBEROFESTIMATEDUNITSAMONTHLYVARIANCEANALYSISEXAMINESEA
48、CHOFTHEFOURINPUTCATEGORIESFORSIGNIFICANTDIFFERENCESBETWEENTHESTANDARDCOSTSALLOCATEDANDACTUALRESULTSWHENVARIANCESARESIGNIFICANT,THEAMOUNTSAREAPPLIEDTOTHEWORKINPROCESSINVENTORYACCOUNTTHERATIONALEISTHEUNITSALESGENERALLYOCCURONEMONTHAFTERPRODUCTIONISCOMPLETEVOLUMEVARIANCESAREISOLATEDANDREVIEWEDBYTHESALE
49、SGROUPASMENTIONEDEARLIER,ASWITHTHELARGECOMPANY,THESALESFORCEINTHE500MILLIONFIRMISPRIMARILYRESPONSIBLEFORTHEVOLUMEESTIMATESLARGEVOLUMEVARIANCESTHATREQUIREADJUSTMENTAREMADETOWORKINPROCESSONTHEBALANCESHEETAGAIN,THISISDUETOAONEMONTHLAGOFSALESAFTERPRODUCTIONTHEMEDIUMSIZEDCOMPANYUTILIZESSTANDARDCOSTSPRIMARILYTOMANAGEOPERATIONSFOREFFICIENCYTHEMAINOBJECTIVEISTOKEEPCOSTSLOW,WITHOUTTHEDETAILEDEMPHASISONPRODUCTPROFITABILITYGIVENTHEHIGHLYCOMPETITIVENATUREOFTHECONSUMERPACKAGEDFOODSINDUSTRY,THEMEDIUMSIZEDCOMPANYISLESSLIKELYTODRIVEMARKETPRICESANDISMOREAPTTOREACTTOPRICESTHEMA
