Time-Driven Activity-Based Costing Report
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Added on 2020-05-28
Time-Driven Activity-Based Costing Report
Added on 2020-05-28
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Running head: MANAGERIAL ACCOUNTINGManagerial AccountingTime-Driven Activity-Based Costing
MANAGERIAL ACCOUNTING1Table of ContentsIntroduction...........................................................................................................................................2Overview of Tata Motors Company...................................................................................................2Vision.............................................................................................................................................3Mission..........................................................................................................................................3Manufacturing of Tata Motors Vehicles........................................................................................3Time-Driven Activity-Based Costing...................................................................................................4Time Equation................................................................................................................................5Features of Time-Driven Activity-Based Costing................................................................................6Difference between TDABC and Activity- Based Costing and Traditional Costing System.................6Suitability of TDABC for Tata Motors.................................................................................................7Conclusion.............................................................................................................................................9References...........................................................................................................................................10
MANAGERIAL ACCOUNTING2IntroductionThe report is being prepared in order to check whether the Time-Driven Activity-BasedCosting is suitable for Tata Motors Company or not. In order to proceed, the report willprovide a brief description of the Tata Motors Company along with the concept and featuresof the Time-Driven Activity-Based Costing. The report will also explain the differencebetween Time-Driven Activity-Based Costing, Traditional Costing system and ActivityBased Costing. Overview of Tata Motors CompanyThe automobile industry is one of the most revenue earning industry which is growing withtime. The automobile industry deals in the trading and manufacturing of vehicles that consistsof farm equipment, trucks, commercial vehicles and passenger cars. This industry offerspeople to reach their destination such as office, shopping, etc. on time (Infoplease. 2017).Tata Motors Company is a well-known and one of the top companies in the automobileindustry. The company was founded by Jamsetji in 1868 (Tata Motors, 2017). Tata Motorshas the membership of USD 100 billion group. The services of the company are customer-centric this is because of their Moto i.e. of giving back to the community and surviving in themarket for longer time duration. Therefore, they maintain good relations with theircustomers, suppliers, as well as with their competitors. The efforts of the company are towards changing the background of the automobile industryby offering a variety of choices of the customers. The demand and choice of the customer arerespected in the company and therefore they try to bring new technologies with enhancedperformance. The passenger cars of Tata Motors are designed for advanced connectivity,luxury, and performance. The focus of the company is on their future objectives and to offerbest quality and service to their customers. Further, the research and development department
MANAGERIAL ACCOUNTING3of the company is majorly in Italy, UK, India, and Korea. The company has entered into thevarious strategic acquisition and joint ventures in order to launch new and different products.The global strategy of Tata Motors is to maintain their operations in three segments which arePassenger cars, Utility vehicles, and Commercial vehicles. Tata Motors main agenda ofglobalization was to increase the market share, customer base, and revenue. VisionThe vision of Tata Motors is to be admired by their business partners, customers,shareholders, and employees for the value and experience they gain while working with them(Daniels, 2017).MissionThe mission of Tata Motors is to be passionate about expecting and offering the vehicles withbest quality, features, and experiences to customers globally that excite them (Tata MotorsAnnual Report, 2015). Manufacturing of Tata Motors VehiclesThe manufacturing service of Tata Motors does not only involve advanced technology butthey have the talented and skilled team of employees and engineers who develop vehicleswith best quality (Tata Motors, 2017). Company’s manufacturing plants are certified fordelivering vehicles with manufacturing standards and best quality. The reason behind thesuccess of the company in the automobile industry is the focus of their manufacturingdepartment which is on automation of technology. The development cycle is the feature of ITindustry which is reducing the involvement of human. Digital Manufacturing is known as thecomputer based management of manufacturing process. In today’s scenario, all the
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