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Module 14 of 16 · 📖 5 min read · ⏱ 30 min total

KBM 14 Kosten- und Leistungsrechnung (EN)

Table of contents (6 sections)
  1. Concepts and Background
  2. Architecture Diagram
  3. Practical Steps
  4. Common Pitfalls
  5. Further Resources
  6. Knowledge Check

KBM 14 Cost and Performance Accounting

Cost and performance accounting forms the foundation for entrepreneurial decisions. It enables systematic recording, analysis, and control of all operational costs and performance. In this module, you will learn how to classify costs according to various criteria, how to perform cost center accounting using the operating cost sheet (BAB), and how to apply various calculation methods to evaluate the profitability of products, services, and departments.

You will be able to distinguish between full cost and partial cost accounting, calculate contribution margins, and perform break-even analyses. This knowledge is essential for developing pricing strategies, evaluating cost centers, and ensuring the economic efficiency of the company.

Concepts and Background

Cost Types
Cost type accounting records all costs according to their economic nature. Main cost types are material costs, personnel costs, and depreciation. They are divided into direct and indirect costs, depending on whether they can be directly assigned to a cost object.
Cost Centers
Cost centers are areas of responsibility within a company where costs arise. They enable detailed cost allocation and control. Examples include the production department, administration, or sales department.
Cost Objects
Cost objects are the objects for which costs are recorded - usually products or services. Cost object accounting determines the full cost of a product by adding the associated material, production, and overhead costs.
Contribution Margin
The contribution margin is the difference between the revenue of a product and its variable costs. It indicates how much a product contributes to covering fixed costs and is central to partial cost accounting.
Break-Even Point
The break-even point is the sales volume at which total revenue exactly equals total costs. Below this point, a loss occurs; above it, a profit. This analysis is crucial for pricing and sales strategies.

Architecture Diagram

Cost and performance accounting follows a systematic data flow from recording to evaluation:

flowchart TD
    A[Cost Recording] --> B[Cost Type Accounting]
    B --> C[Cost Center Accounting]
    C --> D[Cost Object Accounting]
    D --> E[Calculation]
    E --> F[Break-Even Analysis]
    F --> G[Decision Basis]

Practical Steps

  1. Classify all costs as fixed or variable. Fixed costs remain constant regardless of the performance volume, while variable costs change with the output.
  2. Record all costs in cost type accounting and assign them to the main cost categories: materials, personnel costs, and depreciation.
  3. Allocate overhead costs to cost centers using keys such as area, number of employees, or machine operating time.
  4. Create the operating cost sheet (BAB) as a table with cost centers, associated costs, and allocation keys.
  5. Calculate the overhead allocation rates for each cost center by dividing the overhead costs by the allocation base.
  6. Calculate the full cost of a product by adding material, production, and overhead costs.
  7. Calculate the contribution margin per product: Revenue minus variable costs.
  8. Determine the break-even point: Fixed costs ÷ (Price per unit - Variable costs per unit).
  9. Analyze the profitability of different products based on their contribution margins and prioritize accordingly.
  10. Periodically review the calculation bases and adjust the allocation rates if necessary.

Common Pitfalls

Further Resources

Knowledge Check

Four questions for self-assessment. Click on each question to see the correct answer and explanation.

1. What is the main purpose of cost and performance accounting in a company?
  • A) The preparation of the balance sheet and income statement
  • B) The systematic recording, analysis, and control of all operational costs and performance
  • C) The determination of employee salaries
  • D) The planning of future investments

Correct Answer: B. Cost and performance accounting serves the systematic recording, analysis, and control of all operational costs and performance to enable informed entrepreneurial decisions. Balance sheet preparation is the task of financial accounting, not cost accounting.

2. What is meant by the contribution margin in partial cost accounting?
  • A) The difference between total costs and sales revenue
  • B) The difference between the revenue of a product and its variable costs
  • C) The share of fixed costs in total costs
  • D) The profit after deducting all taxes

Correct Answer: B. The contribution margin is the difference between the revenue of a product and its variable costs. It indicates how much a product contributes to covering fixed costs. Total costs include both variable and fixed costs.

3. What is the break-