Managerial accounting.

Managerial accounting
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Abstract
Managerial accounting system is defined as a technique which helps an organization for
recognizing the potential profits of the firm. The main agenda to implement managerial
accounting system is to complete their work in an inappropriate manner. Management
accounting is based on the internal departments of the firm. The major activities that are
performed by the financial department and management accounting system are related to
budgeting, cost analysis, and various procedures. This project is written from the perspective of
the Toyota which is a leading manufacturing organization in the automobile industry. Moreover,
projects highlight on relevance and reliability of the accounting system. Toyota implements a
management accounting system to perform its operations with more efficiency to complete their
work at a global level.
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Contents
Managerial accounting.....................................................................................................................1
Abstract............................................................................................................................................2
Main Body.......................................................................................................................................4
1. Identification of various example used by management accounting techniques...............4
2. Are MAS relevant to contemporary organisations? Discuss this with reference to:..........5
I) What evidence is there from the case company?...........................................................5
ii) Comparing and contrasting of different activities of the firm for understanding
management accounting system........................................................................................6
3. What conclusions do you make about the relevance of MAS in today’s competitive and (in
most cases), uncertain business environment?.......................................................................7
4.Provide four (4) specific outcomes or lessons learned from each of the two articles’ research
findings that will be useful for management accountants in Australian companies to learn
from, and justify your answer.................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Main Body
1. Identification of various example used by management accounting techniques
Every organization implements a management accounting system to expand its business at the
global level (Nguyen, et. al., 2017). It determines that it increases the profitability of the firm
through executing effective management techniques such as JIT, Kaizen method and lean
approach for increasing the productivity of the organization.
JIT- The just in time refers to a management strategy that is used by the organization to maintain
the balance between the purchase of raw materials and to deliver finished products to the
customers. Further, it works with two different contrasts in which the first refers to the holds the
exact number of inventories for fulfilling the demand of customers. Whereas just in time
approach is also used by management of Toyota for the completion of their work in a cost-
effective way, this approach results that it is easy for management to increase the efficiency of
their products by completing them before the deadlines (Otley, 2016).
Kaizen- This approach is used by most of the organization to increase the efficiency of their
products at a global level. Kaizen technique helps the organization by modifying small changes
in the organization which leads the firm to earn a high amount of profits. Moreover, it is based
on various improvements which leads the organization to increase their efficiency by increasing
the cooperation within various methods. The main motive to implement this in the organization
is to reduce waste and encourage worker motivation for completion of their work by bringing
innovation in their products (Mia Winata and Chong, 2017). Thus, it is beneficial for Toyota
because it increases the productivity of their work.
Lean accounting system- The lean manufacturing system refers to the approach in which an
organization increase the value in their products. Lean accounting system works on various
principles and process that provides various numerical feedback for manufactures through
executing inventory practices. Toyota introduces this system in the organization to perform its
operations smoothly. With the effective implementation of the lean manufacturing system,
favourable results are achieved by Toyota by cost-effectively accomplishing their goals.
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