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ebook download (Original PDF) Management Accounting : Information for Creating and Managing Value 8th Edition all chapter
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Information for Creating and Managing Value 8e
Management Accounting
Management Accounting
Information for Creating and Managing Value 8e
ISBN 9781760420406
9 781760 420406
www.mhhe.com/au/langfield8e Langfield-Smith Smith Andon Hilton Thorne
Chapter 4
Product costing systems 132
Product costing 133 REALLIFE Job costing in the construction industry
(the Lum Chang Group) 160
REALLIFE The cost of Australian wine 135
Process costing: Spritz 160
REALLIFE Costing defence contracts 136 Learning objectives 132
REALLIFE Product costing in small business 138 Summary 163
References 164
Flow of costs in manufacturing businesses 138
Self-study 165
Allocating overhead costs to products 140 Appendix 167
Key terms 168
REALLIFE Product costs at Coopers Brewery 142
Review questions 169
Types of product costing systems 144 Exercises 170
Problems 173
Job costing: Williams Elevators 147
Cases 179
Chapter 5
Process costing and operation costing 184
Process costing at Spritz 185 REALLIFE Which costing system for Australian wine? 205
REALLIFE From trees to timber 186 Other issues in process costing 208
Process costing with work in process inventories 187 Learning objectives 184
Summary 209
Process costing using the weighted average
References 210
method 190
Self-study 211
Process costing using the FIFO method 193 Appendix 214
Key terms 219
Process costing and spoilage 197
Review questions 219
Hybrid costing systems 201 Exercises 220
Operation costing for batch Problems 225
manufacturing processes 202 Cases 232
vii
Chapter 7
A closer look at overhead costs 290
What are overhead costs? 291 Allocating support department costs 310
Allocating indirect costs: some general principles 293 Learning objectives 290
Summary 319
REALLIFE Measuring tsunami recovery costs:
References 320
an overhead or not? 294
Self-study 320
Allocating overhead costs to products 295 Appendix 323
Key terms 329
Issues in estimating overhead rates 302
Review questions 329
REALLIFE How should the Pacific Islands Exercises 330
Forum Fisheries Agency allocate its overheads? 304 Problems 334
Allocating indirect costs to responsibility centres 307 Cases 342
Chapter 8
Activity-based costing 346
Problems with conventional product costing Activity-based versus traditional product
systems 348 costs at Mason & Cox 361
Product costing at Mason & Cox 350 REALLIFE Healthcare costing challenges 363
Activity-based costing at Mason & Cox 353 Costs versus benefits of ABC at Mason & Cox 363
Initial decisions about ABC at Mason & Cox 354 When should ABC be used? 364
Step one: measuring the costs of the
REALLIFE The adoption of ABC in Australia
manufacturing overhead activities 355
and New Zealand 364
Step two: assigning the costs of manufacturing overhead
REALLIFE ABC in the New Zealand blood service 366
activities to products 357
Other activity-based costing issues 366
REALLIFE Activity-based costing in the NSW
public sector 360 Activity-based costing in service organisations 368
viii
Chapter 10
Standard costs for control: direct material and direct labour 476
Controlling costs 477 Standard costs for product costing 497
Setting standards 478 Learning objectives 476
Summary 500
Developing standards at R.M. Williams 481
References 500
Calculating standard cost variances 484 Self-study 501
REALLIFE Cost pressures and variance analysis Appendix 504
in hospitals 489 Key terms 506
Review questions 506
Investigating significant variances and taking Exercises 507
corrective actions 490 Problems 510
Cost control through assigning responsibility 494 Cases 519
Standard costing and behaviour 496
Chapter 11
Standard costs for control: flexible budgets and manufacturing overhead 522
Flexible budgets 523 Overhead cost performance report 536
Flexible overhead budget: R.M. Williams 527 Standard costs for product costing 537
Overhead application in a standard costing system 528 Flexible budgets in service organisations 538
Calculating overhead cost variances 529 An appraisal of standard costing systems 539
ix
Chapter 12
Managing and reporting performance 570
Purposes of performance measurement 571 Transfer pricing 586
Characteristics of effective performance REALLIFE The dark side of transfer pricing
measurement systems 571 in multinationals 595
REALLIFE Principles for reporting performance Learning objectives 570
outcomes 573 Summary 596
References 597
Structuring for control: decentralisation 573
Self-study 598
Responsibility centres 575 Key terms 601
Review questions 602
More complex structures 577
Exercises 603
REALLIFE Shared services to enhance Problems 606
customer value and manage costs 579 Cases 615
Financial performance reporting 580
Chapter 13
Financial performance measures and incentive schemes 622
Financial measures in investment centres 623 REALLIFE Employee share ownership is more than an
incentive compensation scheme 642
Return on investment 624
Learning objectives 622
Residual income 628 Summary 643
Measuring profit and invested capital 629 References 644
Self-study 645
Measures of shareholder value 633 Key terms 647
Review questions 648
Incentive schemes 636
Exercises 649
REALLIFE Senior executive Problems 651
pay in Australia 640 Cases 658
Chapter 14
Strategic performance measurement systems 662
The problems with using traditional financial performance The balanced scorecard 669
measures in isolation 663
REALLIFE Managing performance at IAG 672
The advantages of non-financial measures 665
REALLIFE Measuring impact in charitable organisations 673
Selecting operational measures 665
Strategy maps 673
The limitations of non-financial
REALLIFE Customising the balanced scorecard 675
performance measures 669
Chapter 15
Managing suppliers and customers 702
Supply chain management 703 Learning objectives 702
Summary 732
REALLIFE Driving supply chain improvements at Coles 705
References 733
Managing suppliers 706 Self-study 734
Appendix 738
Managing inventory 710 Key terms 740
REALLIFE Is JIT too risky? 719 Review questions 741
Exercises 742
Managing customers 720 Problems 745
Cases 753
REALLIFE Reliance on major customers 721
Chapter 16
Managing costs and quality 758
Cost management 759 Managing quality 778
Activity-based management 760 REALLIFE Managing costs, throughput and quality for
REALLIFE Lean thinking at the city of customer value: Flinders Medical Centre 779
Melbourne 765 Learning objectives 758
Business process re-engineering 768 Summary 785
References 786
Life cycle costing 769 Self-study 786
REALLIFE Cost management in the Australian Key terms 788
wine industry 770 Review questions 789
Exercises 790
Target costing 772 Problems 794
REALLIFE Target costing in Australia Cases 803
and New Zealand 773
xi
Chapter 18
Cost volume profit analysis 858
CVP analysis at the Melbourne Theatre Company 859 Practical issues in CVP analysis 877
The break-even point 861 An activity-based approach to CVP analysis 878
The break-even formula 861 REALLIFE Making the most of our coffee culture 879
REALLIFE The importance of the break-even Financial planning models 882
point at Linneys 862
Learning objectives 858
Graphing cost volume profit relationships 864 Summary 884
References 885
REALLIFE A sundae too far away 865
Self-study 886
Target net profit 868 Appendix 888
Using CVP analysis for management decision Key terms 891
making 868 Review questions 892
Exercises 893
CVP analysis with multiple products 873 Problems 895
Including income taxes in CVP analysis 875 Cases 901
REALLIFE Salmon—a fishy success story 876
Chapter 19
Information for decisions: relevant costs and benefits 906
The management accountant’s role Identifying relevant costs and benefits 913
in decision making 907 Relevant information for some common decisions 917
REALLIFE What role do accountants play
REALLIFE Pros and cons of outsourcing 925
in decision making? 909
REALLIFE Sustainable solutions for by-products 932
Relevant information 911
xii
Chapter 20
Pricing and product mix decisions 960
Major influences on pricing decisions 961 REALLIFE The penalties for price fixing 979
REALLIFE Battling for Australia’s skies 964 Product mix decisions 980
Economic profit-maximising models 964 Learning objectives 960
Summary 983
Pricing strategies 967
References 984
REALLIFE Ticket pricing in the Australian Self-study 985
Football League 968 Appendix 988
Key terms 991
Strategic pricing of new products 975
Review questions 991
Competitive bidding 976 Exercises 992
Legal restrictions on setting prices 978 Problems 995
Cases 1003
REALLIFE Proving predatory pricing:
a challenge for the ACCC 979
Chapter 21
Information for capital expenditure decisions 1008
Capital expenditure decisions 1009 Post-completion audits of capital
expenditure decisions 1040
Cash flows 1009
Justification of investments in
The capital expenditure approval process 1010
advanced technologies 1041
Capital expenditure decisions at the
REALLIFE What drives investments in technology? 1042
Meadowleigh Medical Centre 1011
The limitations of traditional capital
Discounted cash flow analysis 1014
expenditure analysis 1043
Comparing two alternative investment projects 1020
Learning objectives 1008
REALLIFE Fleet renewal decisions at Qantas: Summary 1045
the A380 and B787 1022 References 1046
Self-study 1047
Accounting for uncertainty using real-options
Appendix 1050
analysis 1024
Key terms 1053
Other techniques for analysing Review questions 1053
capital expenditure proposals 1025 Exercises 1055
Performance evaluation: a behavioural issue 1029 Problems 1058
Cases 1063
Income taxes and capital expenditure analysis 1030
xiii
Kim Langfield-Smith
David Smith
Paul Andon
Helen Thorne
xiv
David Smith
David has a BCom (Honours) from La Trobe University and a PhD from Monash University. He
is a Professor of Management Accounting in the University of Queensland Business School. He
previously held appointments at Monash University, the University of Melbourne and La Trobe
University.
David’s research is in the area of management control systems, with a particular focus
on performance measurement, and his research has been published in journals including
Accounting, Organizations and Society; Management Accounting Research; Behavioral Research
in Accounting; Journal of Accounting Literature; and Accounting, Auditing and Accountability
Journal. He currently serves as an editor at Behavioral Research in Accounting, as well as serving
on several editorial boards.
David has been actively involved in the accounting profession and served as a board member of the Accounting
and Finance Association of Australia and New Zealand (AFAANZ) for a number of years. David is also a past Chair
of the Chartered Institute of Management Accountants’ (CIMA) Centre of Excellence Australasia Research Panel.
Paul Andon
Paul has a BCom (Honours), MCom (Honours) and PhD from UNSW Sydney. He is an Associate
Professor in Accounting at UNSW Sydney and a Fellow of Chartered Accountants Australia and
New Zealand. Paul teaches and researches in the areas of management accounting, fraud and
control systems. His research in these areas has been published in leading international journals,
including Accounting, Organizations and Society; Journal of Management Studies; Management
Accounting Research; Accounting, Auditing and Accountability Journal; and Critical Perspectives
on Accounting. Recently, Paul received a major Australian Government research grant to study
offender strategies and other factors mitigating against the effectiveness of management controls
to prevent/detect serious workplace fraud.
Before commencing his academic career, Paul worked in a large professional services firm. He remains active
in the accounting profession through his involvement with McGrathNicol’s Financial Crime Exchange, and by
contributing to the Management Accounting and Applied Finance Module for Chartered Accountants Australia and
New Zealand’s CA Program.
xv
xvi
xvii
xviii
xix
REALLIFE
(ttR) activities of health facilities into cost drivers. and rolls produced. Deliveries made at different times of the day, to different shops, are likely to
the aBF model. Healthcare manage- non-volume-
ment consultants Paxton Partners were Information about cost behaviour can also help managers as they decide how to enhance customer
of production batches baked, not the number ofvalue
carry different volumes of bread. Similarly, electricity costs are likely to be driven by the number
based cost driver
loaves and rolls produced. Small batches will use as
a cost driver not
much electricity as large batches. Cost drivers that are not directly related to production volume are
engaged by the iHPa to assist with this and shareholder wealth. In deciding whether to add a new intensive care unit, a hospital’s administrators
called non-volume-based cost drivers. need
directly related to
production volume
feasibility work. to predict the cost of operating the new unit at various levels of patient demand. In deciding A MODERNwhich VIEW OF COSTS productsAND COSTto DRIVERS
Paxton Partners’ engagement Activity-based costing is a modern approach to costing that has made major advances in analysing
INFORMATION
international medicalFOR CREATING
in training. VALUE
unit level costs
14 PART FOUR Batch level costs relate to activities that are performed for a group of product units, such as a
Key terms are bolded in the text where they first appear, defined in theASSUMPTIONS
professionals
the end of the chapter. Use the end-of-chapter Key terms WHATchecklist to test yourself when you
Product level (or product-sustaining) costs relate to activities that are performed for specific
ARE COST
both unit and non-unit drivers that were considered in this study.
BEHAVIOUR,
1. Cost behaviour depends COST ESTIMATION
on one activity or a few independent variables. In reality, however,
Wide ranging cost and activity information was collected from australian hospitals and related government bodies, which was used
batch level costs
costs relating to
products or product families and include the costs of researching, designing and supporting
products. For example, the cost of developing a new product line, such as fruit buns, would be
costs are affected by a host of factors including the weather, the mood of employees and the
activities that are
a product level cost at Tasty Bread. The number of products may be the cost driver for product-
of planned performancesanalyses toof
testthe play werebetween to decrease
AND COST PREDICTION? from cost35 to and
20,total
therecurrent
number of expenditure.
tickets sold the would
performed for a
sustaining costs.1
finish the chapter. The definitions are also repeated in a full glossary at quality the end areof thelinearbook.
to perform statistical the relationships the candidate drivers hospital group of product
of the raw materials used. units, such as a
Facility level (or facility-sustaining) costs are costs that are incurred to run the business but are
fall analysis
belowproved 7 000. Management may decide to negotiate lower rates for the actors in order to reduce the
difficult as problems were experienced with data availability and consistency across the participating hospitals. only
2.
Cost behaviour is the relationshipCostbetween
behaviours
a costmodelled
and theaslevel straight
of lines that
activity
drivers associated with trainee group types were found to be significantly associated with teaching and training costs. in their report to withincauses
the relevant
this range.
cost (i.e. LO 3.1 production batch
or a delivery load
not caused by any particular product. An example is the premises cost at Tasty Bread. In the short
term, this cost has no obvious cost driver.
We discuss the hierarchy of activity costs and cost drivers further when we look at activity-based
fixedthecosts of the
iHPa, Paxton play.
Partners Let’s
offered assume that
recommendations the estimated
for addressing fixed costs
the data limitations are $351
experienced, so that000
furtherfor sales verified
statistically volumes of cost driver). How does an accountant determine
The accountant the cost
must consider, on abehaviour
case-by-caseof a particular
basis, cost
whether these item?
assumptions The are reasonable. product level (or
product-sustaining)
costing in Chapter 8.
cost drivers for ttR activities can be revealed. SELECTING THE BEST COST behaviour the
costDRIVERS
less than 7 000 tickets.
costs costs relating
process used is called cost estimation, and can be accomplished in many ways. One way is toNotice analyse to activities that
that Jack Trent, Tasty Bread’s accountant, has identified more than one cost driver for each cost
relationship
are performed for
(see Exhibit 3.2). How do they differ? And which one should the accountant choose for estimating
COSTS AND BENEFITS OF ACCURATE COST INFORMATION
Where two levels of fixed costs are recognised, two break-even points may be calculated. We saw
source: Paxton Partners (2014)
historical data involving costs and different activity levels. cost behaviour? specific products or
product families
between a cost and
We have used the Tasty Bread Company to describe a variety of cost estimation methods
Inputs or outputs? ranging
earlier that for sales between 7 000 and 12 000 tickets, the break-even point is 9 600 tickets. For the Estimates of cost behaviour provide the basis for predicting future costs. Cost prediction is Trent has identified
Which of the level of activity
For some costs, Jack
facility level (or both inputs and outputs as cost drivers. The cost drivers for
from managerial judgment to sophisticated techniques involving regression analysis. direct material include two measures
these
of production
facility-sustaining) volume: an output measure, the number of bread
lower volume of sales, the break-even point is calculated as follows: a forecast of a cost at a particular
methods is level of activity.
best? The accountantFor
mustexample,
decide whenin itpreparing
is importantitsto annual
use a more budget,
rolls, and an input measure, the weight of ingredients used. Likewise, for the electricity cost, the
number
costs the costs
sophisticated, orand
incurred to support
of batches baked is an output costanddriver
measure the number of kilowatt hours consumed is an input
the business as a
measure. And for the delivery costs, the number of deliveries is an output measure and the number of
by reducing the kilowatt hours of electricity consumed. To do this the company would need to Fox Studios may predict studio costs cost
more costly, on the basis method,
estimation of the production
and when it ishours expected
acceptable to use afor the approach.
simpler coming In general,
litres of fuel is an whole; not caused
input measure.
by any particular
Break-even
inefficient. At Tasty Bread, the usepoint = ________
of inexperienced truck drivers may be a major cause of delivery While it is easy
anticipated length of each production, to estimate
which the costs of
is influenced byestimating cost sound-mixing
the filming, functions, it is more
anddifficult
editingto assess the
$58.50 Inefficient design of unloading facilities
costs: in particular, maintenance, tyres and fuel consumption. benefits that can flow from better budgeting and planning, and from improved information for decision
the process of
requirements. Exhibit 3.1 summarises the relationship between cost behaviour, cost estimation and determining the
at the shops may be another major cause of= 6 000costs.
delivery tickets making.
cost prediction.
lan67085_ch03_074-131.indd 82 07/31/17 02:05 PM
handy checklists,
costs are stepped, the total cost examples ofthisdocuments
line is also stepped. In example, the point of and worked
discontinuity is 7 000 easy reading and revision.
and describe several techniques forcanestimating
there, he use the costcosts. Some
functions, of these
combined with cost behaviour
estimates of future patterns
the2.company’s major costs. This budget, in turn, can provide the framework for controlling costs.
introduced briefly in Chapter
were to budget
levels of activity,
cost prediction
tickets. The graph indicates that if the sales volume is likely to be less than 7 000 tickets, then the MTC Managers can also use the cost estimates when making important decisions, such as which equipment
examples add another dimension to the topics covered
needs to ensure that it sells more than 6 000 tickets for the play in order to recover its costs. However,
to replace or
COST BEHAVIOUR, COST ESTIMATION AND COST PREDICTION
CHAPTER THREE
which products COST BEHAVIOUr, COST DrIVErS AND COST ESTIMATION
to make. using knowledge
107
cost behaviour to
of
and
if thehelp
volume ofto
Untitled-5 84
reinforce
tickets learning.
sold is 7 000 or greater, then the level of fixed costs will be higher, and the play
09/12/17 09:20 PM
AT TASTY BREAD COMPANY
which are the underlying factors that cause costs to be ■ In practice, analysing cost behaviour can be fraught
forecast the level of
cost at awith
particular
will not yield a profit unless it sells more than 9 600 tickets.
Summary
Our discussion ofincurred.
a bakery and ■a chain
cost behaviour will focus on a business called Tasty difficulties.
of six crusty bread shops
Bread Company,
For example, whichhow operates
do we ensure reliable
level of activity
A variety of cost behaviours exist; in Auckland,
they range from New Zealand. Each shop sells a variety
data? What effect will increasing experience have on
simple variable and fixed costs to more complicated labour costs? How do we analyse cost behaviour in an
Exhibit 18.3 In this chapter we considered the relationship between some activity-based
cost drivers are not directly
costing related to
environment? Howproduction
do we assess
semivariable and curvilinear costs.
Cost volume profit graph with step-fixed costs, Melbourne Theatre Company production cost behaviour, cost estimation and cost prediction, and volume. theThese cost benefits
costs and drivers areof thecalled non-volume-
various approaches to
■ Cost predictions based on an analysis of cost behaviour
described various approaches to identifying cost behaviour basedestimating
cost drivers.
cost behaviour? And how well met are the
of Calypso should be confined to
and estimating costs. Key points include: the relevant range, which is the
■ Activity-based costing
assumptions is a contemporary
underlying approachAstoin the
the cost functions?
range of activity over which a cost function is expected
costing that recognises
selection a hierarchy
of any accounting of costs the
technique, andchoice
cost of a
to remain valid.
■ Cost behaviour refers to the relationship between a drivers: unit,
cost batch, product
estimation and facility
method involves levels. of
a trade-off While
costs and
cost■ and the levelcosts
In predicting of activity or cost
it is useful driver. Cost
to recognise that some unit level cost drivers measure production
$’000s total revenue benefits. More accurate estimation volume,
methodsthe provide
break-even point: estimation
costs
lan67085_ch03_074-131.indd is the
79 can process as
be classified of engineered
determiningcosts, the where
cost they cost drivers for batch and product level costs are non- 07/31/17 02:05 PM
better information, but they are often more costly to use.
behaviourbear aofphysical
a particular
relationshipcostto output.
item, and Fixedcost
costs can volume-based. There are no obvious cost drivers for
9600 tickets or
prediction uses a knowledge
be classified as committed of or
a cost’s behaviour to
discretionary. facilityAs you
level explore other topics in this book, you will
costs.
$864 000 of sales
forecast the level of cost at a particular level of
■ Several approaches can be used to estimate costs. discover that aunderstanding and analysing
■ Understanding firm’s cost behaviour cancost behaviour
enable
activity.These include managerial judgment, the engineering managers is an essential skill for the management
to anticipate changes in costaccountant.
when the It can
■ The term cost driver is used to describe an activity
method and various quantitative techniques. organisation’s or help to estimate the costs of goods and services, itthat
provides
800 total costs operations change. Cost predictions
factor Engineering
that causesmethods
a cost to be incurred.
of cost estimationTraditional
are based on a areabasedframework forbehaviour
predictingpatterns
future costs (i.e. budgeting)
planning and
for 7000 to on cost facilitate
management
detailedaccounting
analysis ofsystems use various
the process in whichmeasures
the costs are andreporting
control, financial
and this performance,
can help managers and it istofundamental
manage to
12 000 tickets
of production
incurred.volume as cost drivers to analyse cost resources more effectively and add value to their for a
cost volume profit analysis and to analysing costs
break-even point: behaviour. These cost drivers are called volume-based
■ Quantitative techniques are based on an analysis of organisation. range of tactical decisions.
However, effective cost management
6000 tickets or cost drivers.
past cost More
datarecent approaches
observed recognise
at a variety thatlevels, requires
of activity In the next few chapters,
an understanding we will
of root continue
cause our study of
cost drivers,
$540 000 of sales and include the high–low and regression methods. costs by identifying the various approaches to estimating
600
the costs of producing goods and services.
total costs for less
References
than 7000 tickets
step-fixed cost
rEFErENCES
400 Ansberry, C1062002, ‘In the new workplace, jobs morph to
lan67085_ch03_074-131.indd crunch-time-for-businesses-productivity-cost-reductions/,
07/31/17 02:05 PM
The end-of-chapter references list material suit rapid change of pace’, The Wall Street Journal, March
3, pp. A1, A7.
viewed 27 May 2013.
Hair, JF, Black, WC, Babin, B, Anderson, rE, 2010, Multivariate
82
1. Plot the above data in a scatter diagram. Assign cost to the vertical axis and the number of loans
completed to the horizontal axis.
2. Estimate the monthly fixed cost and the variable cost (in dollars and cents) per loan using the
Every chapter contains a significant amount of new and updated end-of-chapter material.
cost function
cost prediction
87
79
regression analysis
relevant range
100
92
high–low method.
curvilinear cost 91 root cause cost drivers 83 SOLUTION TO SELF-STUDY PROBLEM 1
dependent variable (Y) 101 scatter diagram 98
discretionary cost 93 semivariable (or mixed) cost 90 1. Scatter diagram:
Review questions
engineered cost
engineering method
engineering studies
93
97
97
simple regression
standard error of the coefficient
step-fixed cost
103
113
90
Exercises Cost of Loans
Department
of the
128 techniques
PART TWO COSTS ANDand
COSTINg concepts relating to the chapter.
82 82
fixed cost 88 variable cost 87
SYSTEMS
high–low method 100 volume-based cost driver 81 CHAPTER THREE COST BEHAVIOUr, COST DrIVErS AND COST ESTIMATION 117
$60 000
Appendix Appendixes
COST STRUCTURE AND OPERATING LEVERAGE
The cost structure of an organisation is the relative proportion of its fixed and variable costs.5 Cost To help you extend and build your knowledge, end-of-
LO 18.11
structures differ widely between industries and between firms within an industry. A company using a
computer-integrated manufacturing system has a large investment in plant and equipment, which chapter appendixes provide in-depth information on
results in a cost structure dominated by fixed costs. In contrast, the cost structure of a retail store has a
cost structure the much higher proportion of variable costs (particularly salaries). The highly automated manufacturing specific topics.
relative firm is capital-intensive, whereas the retail store is labour-intensive.
proportions of An organisation’s cost structure has a significant effect on the sensitivity of its profit to changes
an organisation’s in volume. A convenient way to portray a firm’s cost structure is shown in Exhibit 18.9, which
fixed and variable describes the cost structures of three firms: A, B and C. Although these three firms have the same
costs
sales revenue ($500 000) and net profit ($50 000), they have very different cost structures. Company
B’s production process is largely manual, and its cost structure is dominated by variable costs. It has a
low contribution margin ratio of only 0.20. (In the chapter we calculated the contribution margin ratio
using unit contribution margin ÷ sales price. It can also be based on total contribution margin ÷ total
sales revenue, as shown here.) In contrast, Company C has a highly automated production process, and
its cost structure is dominated by fixed costs. The firm’s contribution margin ratio is 0.90. Company
A falls between these two extremes, with a contribution margin ratio of 0.40.
Suppose that sales revenue increases by 8 per cent, or $40 000, in each company. The resulting
increase in each company’s profit is calculated in Exhibit 18.10.
xxi
Exhibit 18.9
Comparison of cost structures
Company B (manual Company C (automated
Company A system) system)
xxii
xxiii
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xxiv
Title: The daily life of the Greeks and Romans as illustrated in the
classical collections
Language: English
COPYRIGHT
BY THE METROPOLITAN MUSEUM
OF ART, 1924
CONTENTS
PAGE
Illustrations vii
Introduction xiii
The Daily Life of the Greeks and Romans
I. Religion 3
II. The Drama 13
III. Houses and Furniture 19
IV. Occupations of Women 32
V. Children and Education 40
VI. Dress and Toilet 47
VII. Amusements, Music, and Dancing 68
VIII. Arms and Armor 76
IX. Athletics 89
X. Races and Riding 98
XI. Gladiators 106
XII. Trades and Crafts 109
XIII. Burial-Customs 121
ILLUSTRATIONS
PAGE
Cover Design: Adaptation of wall-painting in cubiculum
from Boscoreale. Eighth Room.
Vignette on Title-page: Departure of a warrior, from a
lekythos. Case G, Fifth Room.
Introduction
Head-band: Design from a Roman table in the
cubiculum. Eighth Room xv
Tail-piece: Oscillum. Case 1 xvii
Chapter I
Head-band: Genii sacrificing, from an Arretine
bowl. Case G, Eighth Room 3
1. Praying youth (?) 4
2. Man saluting a statue of Athena 5
3. Man carrying a pig to be sacrificed 3
4. Votive table 6
5. Votive plaque 6
6. Terracotta herm 7
7. Warriors making a treaty (?) 7
8. Charms of colored glass 7
9. Lar 8
10. Roman priest 9
11. Camillus 10
12. Statue of Cybele on its car 11
13. Sacrificial procession 11
14. Sistrum 12
Chapter II
Head-band: Plan of the theatre of Segesta,
Redrawn from Laloux, L’Architecture
grecque, p. 233, fig. 217 13
15. Tragic mask 14
16. Slave in Old Comedy 14
17. Theatre at Epidaurus 15
18. Actor of mimes 16
19. Actor in New Comedy 17
20. Comic actor as Herakles 17
Tail-piece: Terracotta mask of a Satyr. Case 1 18
Chapter III
Head-band: House of Sallust, redrawn from Mau-
Kelsey, Pompeii, published by the Macmillan
Company, p. 287, fig. 136 19
21. Roman wall-painting 20
22. Cubiculum 21
23. Mosaic picture 22
24. Old man seated on a klismos 23
25. Bronze cauldron 24
26. Greek table-ware of painted terracotta 25
27. Bronze patera 26
28. Bronze wine-jug 27
29. Bronze jug 27
30. Bronze beaker 27
31. Bronze ladle for wine 28
32. Bronze wine-strainer 28
33. Roman silver cup 29
34. Roman silver spoons 29
35. Bronze candelabrum 30
36. Bronze lamp on a stand 31
Tail-piece: Campanian plate for fish. Case Q, Sixth
Room 31
Chapter IV
Head-band: Women working wool, from an
epinetron. Case 2 32
37. Woman embroidering or making a net 32
38. Onos or epinetron 33
39. Woman carding wool 33
40. Embroidered clothing 34
41. Greek country-woman spinning 35
42. Baking bread in a primitive oven 36
43. Women winnowing and grinding corn 36
44. Women at a well-house in Athens 37
45. Marriage-vase 38
Tail-piece: Woman spinning, from a pyxis. Case A,
Fourth Room 39
Chapter V
Head-band: Boys going to school, from a kylix.
Case 3 40
46. Gold bulla 40
47. Old nurse holding a baby 41
48. Terracotta feeding bottle 41
49. Toy horse on wheels 42
50. Tomb lekythos. Child drawing a cart 42
51. Girls playing ball 43
52. Boy rolling a hoop 43
53. Women whipping tops 44
54. Stylus 44
55. Ephedrismos game 45
56. Boy with a writing tablet 45
57. Ink-pot 46
Tail-piece: Jointed terracotta doll. Case 3 46
Chapter VI
Head-band: Fibula. Gold Room 47
58. Diagram of Doric chiton, reproduced from
British Museum, A Guide to the Exhibition
illustrating Greek and Roman Life, 2d edition,
fig. 129 47
59. Amazons in Men’s Ionic chitons, reproduced from
Furtwängler und Reichhold, Griechische
Vasenmalerei, I, pl. 82 48
60. Early chitons 49
61. Woman’s Doric chiton of the fifth century 50
62. Woman in Ionic chiton 51
63. Doric chiton without girdle 52
64. Terracotta statuette. Lady in himation and hat 53
65. Terracotta statuette. Lady in himation 53
66. Terracotta statuette. Man in riding-cloak and hat 53
67. Man’s chiton 54
68. Akropolis maiden in Ionic chiton and himation 55
69. Greek sandal 56
70. Greek jewelry 57
71. Women’s coiffures, reproduced from Abrahams,
Greek Dress, fig. 45 58
72. Strigil 59
73. Razor 60
74. Alabastron 60
75. Aryballos 61
76. Glass bottle 61
77. Silver pyxis 62
78. Terracotta pyxis 62
79. Spatula 63
80. Dipping-rod 63
81. Greek mirror on a stand 64
82. Etruscan mirror 65
83. Greek mirror and cover 65
Tail-piece: Dionysos wearing the himation, from a
krater. Case J, Fourth Room 67
Chapter VII
Head-band: Symposium, from a krater. Case X,
Fourth Room 68
84. Symposium, reproduced from Furtwängler und
Reichhold, I, pl. 73. 69
85. Kottabos-stand 70
86. Glass astragals 71
87. Girls playing with astragals 71
88. Youth with a lyre 72
89. Girl dancing and playing the castanets 72
90. Apollo with a kithara 73
91. Terracotta figurine. Woman dancing 74
92. Terracotta figurine. Woman dancing 75
Tail-piece: Girl dancing, from a kylix. Case G, Fifth
Room 75
Chapter VIII
Head-band: Combat, from a kylix. Case K, Fourth
Room 76
93. Greek foot-soldier, reproduced from Die
Bronzen aus Dodona, pl. 11 76
94. Italic helmet 77
95. Italic helmet with metal crest 77
96. Cap-shaped helmet 77
97. “Jockey-cap” helmet 77
98. Corinthian helmet 77
99. Italic armored belt 78
100. Pair of greaves 78
101. Italic cuirass 79
102. Greek cuirass of the fifth century 80
103. Warrior carrying a shield 81
104. Persian fighting with a machaira 82
105. Javelin-head 83
106. Spear-head 83
107. Dagger-blade with hooked tang 83
108. Leaf-shaped dagger-blade 83
109. Bronze sword 83
110. Arrow-heads 84
111. Amazon with battle-axe and wicker shield 85
112. Lamp. Victory with a trophy 87
Tail-piece: Attic helmet. Case 4 88
Chapter IX
Head-band: Pankratiasts, from a skyphos. Case 4 89
113. Jumper with halteres 90
114. Diskos-thrower 91
115. Athlete throwing a javelin 92
116. Wrestlers 92
117. Scene from the pankration 93
118. Panathenaic amphora 94
119. Youth binding on a fillet 95
Tail-piece: Votive disk, redrawn from Jüthner, Die
antiken Turngeräthe, p. 27, fig. 20 97
Chapter X
Head-band: Horsemen, from a krater. Case X,
Fourth Room 98
120. Bronze chariot 99
121. Racing cars on Syracusan coins 100
122. Lamp. Scene from the circus 100
123. Panathenaic amphora. Chariot race 100
124. Bit used in training horses 102
125. Horse’s muzzle 102
126. Young horseman 103
127. Bronze bit 104
Tail-piece: Horseman, bronze statuette. Case B,
Third Room 105
Chapter XI
Head-band: Gladiatorial combats, from a glass
cup. Case 3 106
128. Samnite gladiator 107
129. Thracian gladiator 107
Tail-piece: Hoplomachus, from a terracotta lamp.
Case 5 108
Chapter XII
Head-band: Roman steelyard. Case 1 109
130. Bronze farmyard group 110
131. Greek farmer ploughing 111
132. Terracotta model of a cart 112
133. Terracotta from Cyprus. Donkey with panniers 112
134. Donkeys carrying jars in panniers, 1922 113
135. Key. Early type 114
136. Lock-plate 114
137. Key. Later type 114
138. War-vessels. Vase painting 115
139. Terracotta boat 115
140. Gold-beater’s block 116
141. Unfinished pottery cup 117
142. Ancient mould and modern relief 117
143. Dikast’s ticket 118
144. Forked probe 119
145. Spatulae 119
Tail-piece: Terracotta goat. Case B2, Third Room 120
Chapter XIII
Head-band: Funeral scene from a dipylon vase.
Case L, Second Room 121
146. Mourners at a bier. Terracotta relief 122
147. Poet on his bier (?). Terracotta plate 122
148. Dipylon vase 123
149. Athenian tomb lekythoi 124
150. Marble lekythos 125
151. Etruscan focolare 126
152. Monument of Sostrate 127
153. Etruscan urn for ashes 128
154. Etruscan urn 129
155. Etruscan urn 129
156. Roman grave monument 130
Tail-piece: Akroterion, Sculpture Gallery, No. 5A 131
INTRODUCTION
This handbook is intended to serve as a guide to those objects in
the Classical Collection which illustrate the daily life of the Greeks
and Romans. Some of these have been brought together as a
special exhibition in Cases 1 to 5 in the Fifth Room, while others
which it has not been possible to move are referred to in their
respective positions. Many of these antiquities are among the most
valued possessions of the Museum, while others are entirely lacking
in artistic qualities and would scarcely attract the visitor’s attention,
yet placed in their proper relations they are found to be full of
unsuspected interest.
Investigations of the sites of ancient cities, settlements, and burial
places, especially during the last fifty years, have brought to light
objects of the most varied kinds which allow us to know, as was
never before possible, the appearance and manner of life, the tools,
utensils, weapons, and toys of the Greeks and Romans. Any one
who will take up an old translation of an author such as the elder
Pliny, Xenophon, or Martial, and compare it with a modern version
will see at once the difference in this particular. The earlier translator
was often at a loss when confronted with allusions to every-day life
and consequently either did not express clearly the meaning of his
original or even entirely misrepresented it. But quite apart from a
correct interpretation of the works of ancient writers, the study of
private antiquities enables us to form a mental picture of these
people and their surroundings, the actors in the theatre, the citizens
gathered in the assembly or at a religious festival, the houses from
which they came, and the work they left behind; and as a result, to
see the world with their eyes, to comprehend their aims and actions,
and to compare them more intelligently with our own.
The greater part of these objects were not very valuable at the
time they were made; they were the ordinary possessions of ordinary
persons. Yet one sees on all sides evidence of the skill, careful
workmanship, and artistic feeling ungrudgingly spent in making
simple, common articles for every-day use. In our own time the
situation is very different; to the average person beauty and utility
have little or no relation to each other, and he consequently provides
for his home useful and necessary utensils which have no beauty,
and so far as he is able adds “ornaments” which have no utility and
very frequently, it must be said, no real beauty. Again, the period in
which we are living has not produced any definite style, either in
architecture or in the arts and crafts, though there has been much
careful copying and adapting of earlier ideas; but the products of
Greek and Roman artists and craftsmen have “style,” not as a result
of striving for an effect, but because each workman received the
traditional schooling in his craft and, having practised it with
satisfaction in work well done, tried to add something to the store of
knowledge before handing it on to the next generation. Such
considerations alone would make the study of the every-day utensils
of classical times a valuable one in the present day.
No attempt has been made in this handbook to treat the subject
exhaustively; it is intended merely to provide such explanation and
commentary as will be helpful toward an understanding of the
antiquities. In consequence the length of the sections has been
determined by the amount of material available and does not
necessarily correspond to the relative importance of the various
subjects.
THE DAILY LIFE OF
THE GREEKS AND ROMANS
I
RELIGION
CASE 1