Managerial Accounting - South East Toyota (Pvt) Ltd.

Running head: MANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING
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MANAGERIAL ACCOUNTING
Abstract
The report that has been presented is related to the standard costing and the challenges that
are faced by South East Toyota (Pvt) Ltd. An article has been reviewed upon the standard
costing which includes the planning and control system of the organization. In the later part,
target costing is being discussed in comparison to the standard costing and lastly two process
is being recommended for the help of the contemporary organization and also for the control
purpose.

MANAGERIAL ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Standard Costing in Planning and Control System....................................................................3
Standard Costing System...........................................................................................................5
Challenges faced in Cost Management......................................................................................7
Targeted Costing Method...........................................................................................................8
Recommendations....................................................................................................................10
Job Costing...........................................................................................................................10
Process Costing....................................................................................................................11
Conclusion................................................................................................................................11
References................................................................................................................................12

MANAGERIAL ACCOUNTING
Introduction
In this report, the features of the standard costing have been explained of the planning
and control system. Upon a standard costing article, the relevance of standard costing has
been explained upon this article and the control system will be discussed with South East
Toyota (Pvt) Ltd. All the features that are used by the South East Toyota (Pvt) Ltd. are
evaluated and discussed with the standard costing article. In the next part, the target costing is
being compared with the standard costing and if the target costing is being relevant or not in
today’s world is being evaluated and lastly, the two systems of standard costing is being
recommended for the South East Toyota (Pvt) Ltd.
Standard Costing in Planning and Control System
Standard Costing is one of the tools that is used by the organizations for the planning
of the budget, help in managing and controlling all the costs which benefits in the evaluation
of the cost management performance. This system of standards costing involves the
estimation of the cost that is being required for the production process (Christian, 2018). All
the standards that has been determined are being set before the beginning of the accounting
period and has been set related to the amount and the assumption of the payment of direct
labor that is required for the production process is being mentioned (Tsai, Lan, & Huang,
2019). Additionally, the standards that has been considered are used for the planning of the
budget and also for the production purpose.
The actual amounts and the cost of direct material is being used at the end of the
accounting period. The actual amount is being utilized and the direct labor pay rates is being
compared to the standards that has been previously set. At the time of comparing the actual
costs and standard costs, the variances are being examined between them and this helped the