Investment Appraisal-Net Prese

IMA Advanced Management Accounting,CIMA考试管理级等级中高级管理会计，同时也适用于自己对于管理会计内容的自学

Relevant Costs and Decision Making

• revevant costs
  • Defination:relevant costs are future,cash,and incremental costs directly arising from a result of an investment decision
  • 要学会区分各种成本是否是相关成本，并了解常见的各种成本。明确财会成本和相关成本之间的区别和使用，机会成本更倾向于短期决定或者已经进行了一部分的项目
  • 相关成本分类
    • future cash flow未来现金流
    • incremental costs增量成本
      • any increase or decrease in future cash flow as a result of a decision is arelevant costs
    • opportunity costs机会成本
      • the benefit sacrificed by choosing one decision over another
    • avoidable costs可避免成本
      • a cost which can be avoided is relevant as it is affected by the decision being made
  • 不属于相关成本的成本
    • sunk costs沉没成本
    • committed costs约束成本
      • is a future cash flow but one which will be incurred irrespective of the decision being made.
    • allocated costs分摊成本
      • costs are often allocated from another part of the business, like training
    • depreciation and amortisation 折旧和分期
      • relevant costs only deal with cash flow,depreciation and amortisation are accounting adjustments, no cash comming out and in
• minimum pricing
  • take all relevant costs into account and add together, this total relevant costs is minimum price
    • company should not sell its product less than minimum price
    • 重点在于区分出哪些属于相关成本，虽然在现实中基本不会以最低价格售卖，但是仍然为定价和商讨决策提供了一个好的参考
• to produce or to purchase
  • financial factors
    • access all relevant costs for both options
  • non-financial factors
    • strategic importance
      • 考虑选择对公司战略的重要性，如果非常重要则要自己生产，如果不重要且随处可以买到的产品可以从外部购买
    • quality
      • 自己生产可以控制质量，但是专业的供应商也可能会提供质量更好的产品
    • reliability
      • 存在外部供应商不能按时按量供货的风险，进而影响经营活动
• limiting factors
  • the factor limit company to unlimitly produce its products
    • 只有一个限制因素为single limiting factor
• joint costs
  • joint costs and process situations often arise as the result of two or more different products being created out of the same resources and undergoing the same stages of production
  • allocation of joint costs
    • relative sales value相对销售价
      • the expected sale price determines the amount of common process costs it should absorb 预期的销售价格决定了分担正常生产过程的成本高低，价格越高，承担越多
    • net realisable value净变现价值
      • how much the product worth when we sell it less any future costs.预计售价减去进一步加工成本和预计销售费用以及相关税费后的净值（此处并不包含也不需要减去生产成本）
    • physical quantity
      • how much output is produced is the key here.产量比例确定了分担产品成本的比例
    • losses 损失
      • during the process some unit can be lost,there is a formula to calculate the losted costs:output cost per unit=(input costs-scrap value of costs)/(input units-units lost)
• marginal costing and pricing
  • marginal costing considers inventories at its variable production cost only, and fixed consts are not included, only consider the variable costs.边际成本定价只考虑变化的成本而不考虑固定成本，并且不考虑库存的成本，是一种短期的定价方式，如果在长期来看，还需要考虑固定成本的费用在内
• intangible and non-financial factors in decision making
  • employees
  • competitors
  • government
  • business strategy
• Price elasticity
  • General terms
    • The extent of falling of demand when prices are increased (or increasing demand when prices reduce) is known as the price elasticity of a product.
    • • 此公式代表供求变化导致价格的变化
    • An elastic product is one where the change in either demand or price can have a significant effect on the other.An elastic product will usually have a PE % greater than 1, meaning that a change in price will cause a disproportionately large change in demand.
      • luxury items
    • An inelastic product is the opposite, with a PE % of less than 1. This means that price will have little to no effect on demand.
      • daily products
  • Factors
    • Percentage of income spent on the good/service
      • small percentage——more inelastic
    • The availability of substitutes
      • as the number of substitutes for a product or service increase, the price elasticity is likely to rise.
    • Product status
      • Goods can be classified as necessities or luxury items. Demand for necessities is likely to be relatively；Demand for luxuries is likely to be relatively elastic
    • Time since price changed
      • If the price of the good has only just increased, consumers may be unaware of the increase or cheaper alternatives. but demand will become more elastic as time passes since the price change
    • Brand loyalty
      • If consumers are very loyal to a particular brand, price increases are likely to have a relatively low influence on demand.
    • Competitor pricing
      • 竞争者跟进价格变动：inelastic；竞争者不跟进：elastic
    • Habit
      • Some goods are habit-forming.Demand for habit-forming goods is likely to be inelastic.
  • Demand function graph
    • general terms
      • A demand function graph shows the relationship between price and sales. It will often be downwards sloping (as more units are sold as the price falls) and the extent of the slope (the gradient) will depend on the elasticity of the product.
    • • This gradient of the line (variable B in the price equation), the change in demand as a result of the change in price, is the inverse of the elasticity of demand for the product
      • 此处斜率的计算方式与计算价格弹性相反，不要搞混，此处代表价格的变化带动需求的变化
• Pricing for maximum profitability
  • general terms
    • marginal revenue
      • Marginal revenue calculates how much sales revenue will go up/down from selling one more unit.
    • marginal costs
      • Marginal cost is the increase to total costs of buying/making one more unit.
    • maximum profitability
      • 代数法
        • MR=MC
      • 表格法
        • work out the revenue and profit at a variety of output levels until you find the one where profit is maximised.
• Maximum revenue
  • To maximise revenues, the company should continue selling more products until the point where marginal revenue is equal to or falls below zero (MR=0).