logo

Report on Management Accounting - Toyota

   

Added on  2020-06-05

16 Pages4900 Words64 Views
MANAGEMENTACCOUNTING

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P.1. Explanation of management accounting and essential requirement of differentmanagement accounting systems...........................................................................................1P.2. Different method used for management accounting reporting........................................4P.3. Absorption and marginal costing approach.....................................................................6TASK 3............................................................................................................................................8P.4. Advantage and disadvantage of using different planning tools that can be used forbudgeting control at workplace..............................................................................................8P.5. Adoption of management accounting system to respond to financial management.....10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13

INTRODUCTIONIn this investigation, we would discuss about to the all tools and techniques ofmanagement accounting which is essential for better manage Toyota automotive firm's financialissues and circumstances. We would take a look at management accounting and given theessential requirements of different types of management accounting system. We would discussabout to the different method used for management accounting reporting. We will calculatecosts using appropriate techniques of cost analysis to prepare an income statements usingmarginal and absorption costs. Moreover, in this research we would take a look on the advantageand disadvantage of different types of planning used for budgeting control. Ultimately we wouldhave discussion on compare how organizations are adopting management accounting systems toresponse to financial issues within Toyota automotive business.TASK 1P.1. Explanation of management accounting and essential requirement of different managementaccounting systemsToThe director of the Toyota automotive, japan, Date 23-1-2018Sub: management accounting method and their significanceManagement accounting is the process in which business operational work are managedin this approach. Usually, all the businesses which are operating in production andmanufacturing sector goals to control their overall costing in the plants of the firm. Centeringrequires to be improved the internal efficiency of the business operation so that cost remainwould in favor of standard costing rate (Zoni, Dossi, and Morelli, 2012). There are severalnumbers of tools and techniques are presented in the management accounting which compareits performance and standard to their current position and make suggestion to business, whereare necessary changes required and implement innovation at that position. Several sorts ofanalysis such as variance analysis, budgeting, etc. are included in these approaches to thatmaking hard core business decision whenever required it in the business. All these strategieshave to done in order to importance of the company because these strategies and approacheshelps the business in working in right direction in legislative manner. It is because, there aremany of management accounting system reflects appropriate firms in which data, informationor facts could be stored in the books of accounting. This is the data that is prepared by the1

system which helps business in accomplishing several results and application of theseapproaches which assists in remove the all barriers of management accounting and also helps inbetter manage of their accounts at several levels within the firm. Different managementaccounting system that are available for the enterprises are as following:Cost accounting system: Cost accounting approach is most vital approach for everybusiness to manage their cost accounting system (Yalcin, 2012). In this approach, thereare cost and expenses of Toyota automotive are recorded on the basis of their fixedexpenses, variable expenses and semi variable expenses. Nature of all these expenses istotally different from each other. In this cost accounting system, all these categories ofexpenses are recorded and calculated in these approach and mention section. There areseveral advantages are associated with the cost accounting system because on the basisof examining records and data, manager would be known by this how much fund theyare required to spend fixed, semi-variable and variable section. This approach wouldhelp them to cost control in the Toyota automotive business and make adjustment in it toreduce the cost increment in manufacturing process of Toyota automotive corporation.Thus, it could be said that there is vast significance of cost accounting system within theToyota business. The Toyota automotive firm can use this accounting system to managetheir all costing issues and problems in the business to make them more efficient to costreduction and developing all the exercises which is required to be taken to manage hugesituation of cost increment can be reduced. Job costing system: Job costing system is the approach which is majorly used by thosecompanies which is current running in the manufacture industry. Numbers of times,there are a huge need for company to acquire customized product for their clients andcustomers by paying large amount for it (Wu, and Boateng, 2010). Due to the variousspecification in the products of Toyota automotive business, there must be different-different costing are available for those products and services. So it is very essential forToyota automotive firm to decide a separate price of their every customized productsand services to manage costing of essential materials within the firm. Job costingapproach assist the firm to accomplish their desired targets and goals and separate booksare maintained for each of their products and services and several types of expenses are2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting in Toyota
|14
|3827
|413

Management Accounting Report - Toyota
|16
|5143
|32

Management Accounting Report of Toyota
|16
|5048
|155

Various Administration Accounting Schemes for Fund Control
|15
|4885
|251

Management Accounting Report Tech (UK) Ltd
|15
|4675
|37

Management Accounting Assignment : Unilever Company
|16
|5194
|972