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Management Accounting Report of Toyota

   

Added on  2020-07-23

16 Pages5048 Words155 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P.1. Explain the management accounting and give he essential requirements of different kindsof management accounting systems............................................................................................1P.2. Different methods used for management accounting reporting...........................................4TASK 2............................................................................................................................................6P.3. Absorption and marginal costing approached .....................................................................6TASK 3............................................................................................................................................8P.4. Advantage and disadvantage of using different planning tools that could be used forbudgetary control at workplace...................................................................................................8P.5. Adoption of management accounting systems to respond to financial problems..............10REFERENCES..............................................................................................................................13

INTRODUCTIONThis research, define about to different kind of management accounting tools andtechniques which can be used for the business in order to resolve their financial problemeffectively and there are some of other financial issues which could also be removed efficiently.Toyota automotive business need to different management accounting system which could usefor resolve manufacturing cost of the business effectively. We will discuss about to differentprocess used for management accounting reporting like budget reporting, income statement, jobcosting reporting and account receivable reporting that can help to identify financial issues ofToyota automotive business and also resolve them effectively. We will discuss marginal andabsorption approaches to identify proper expenses in the business and also find out the besttechniques to resolve them effectively. We will also discuss the different kinds of tools forplanning and their advantage and disadvantages as well. Ultimately, we will discuss aboutvarious kind of management accounting system such as key performance indicators, balancedscore card and financial governance tools helps Toyota automotive company to effectiveresponse their financial problems within the firm effectively.TASK 1P.1. Explain the management accounting and give he essential requirements of different kinds ofmanagement accounting systemsTo, The General manager of Toyota Automotive, Japan. Date: 15th February 2018.Sub: Management accounting systems and their significance.Management accounting in which financial data of an organisation is measured, identified,interpreted, analysed and communicated in the context of accomplishing company's financialgoals and objectives effectively (Zimmerman, and Yahya-Zadeh, 2011). This accountingprocess is also concerned with cost accounting system. The major differences between costaccounting and management accounting is that management accounting assist theorganisational manager by providing appropriate financial analytical information while majordecision making process within the firm. In addition, financial accounting provides properinformation about outside function of a company. The methodology of formulatingmanagement accounting project and report is that furnish proper and faithful statistics analytical1

approach and financial data which is needed for company's manager to set up to daily and shortterm decisions of a firm. Toyota automotive business can utilise of management accountingapproaches to reduce its manufacturing and services cost within the business effectively.Moreover, basically accounting is a process in which financial and economic data is recognised,measured and communicated to make better decision and opinion to the manager of Toyotaautomotive corporation in terms of making their decision towards the organisationalmanufacturing and other cost reduction efficiently. There are important requirements of different kinds of management accounting systemCost accounting system: Cost accounting system is also called costing system which isused by most of manufacturing companies in order to formulate outline by approximatethe cost of their production for inventory assessment, profit examination and overcosting control on production and service cost of the business. In this cost accountingapproach, portion of costing is functioning on exercise based cost accounting systemand traditional approach of costing system as well (Macintosh and Quattrone, 2010).Cost accounting is an approach in which organisational production cost is computed bywhich calculating cost of each input production cost and fixed cost such as capitalequipment depreciation as well. In this costing system individual input costing ismeasured by comparison of input costing and actual costing of products for assess theactual value of financial performance and fluctuation of financial data within thebusiness. In the cost accounting process budgetary control, marginal costing, standardcosting and operational and inventory control is implemented in the business in terms ofcost reduction of Toyota automotive corporation effectively.Job costing system: Job costing system in the process which includes the method forgathering the information about to the cost connected with the particular production andservice cost within the firm effectively (Baldvinsdottir, Mitchelland Nørreklit, 2010).Toyota automotive business acquire several kinds of specific customised products at theworkplace. Due to various type of customised products, there is needed to specify eachproduct and services cost in the firm. This approach is also assisted the business to findout accuracy level of business in order to achieve its estimate targets within thebusiness. Toyota automotive required to categorised their each customised product atthe workplace according to different product lines and fix each product costing within2

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