During this project, I am going to mention the details of TOYOTA production process system which was developed more than 40 years ago by Taiichi Ohno, the president of Toyota Motor company at that time. The production system that Toyota company uses now and before is relevant to the concept of the process costing system which is currently used in all department of the company.
Since more than 40 years, Toyota Company was thinking how to develop the traditional process costing system and the production system. Some of the companies believe that the increasing of the production is a big profit, while Toyota proved the opposite. The more you increase the products out of the need of the market, the more losses you are going to gain. This kin...
... middle of paper ...
...ota Production System (TPS) calls for the final product to be pulled out through the process system . This means that parts reach the assembly line in the right place whenever they are needed. This represents a final elimination for traditional system , which require large warehouse and storage in order to push the product as much as possible through the production lines, regardless of the actual demands on the product.
"College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web
"Toyota Production System: Beyond Large-Scale Production." Google Books. Web. 17 Mar. 2014.
"Toyota Production System." Toyota Australia. Web. 16 Mar. 2014.
Artoflean. "Toyota Production System Handbook." 1993. Web.Http://www.artoflean.com/files/Basic_TPS_Handbook.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- What are the five steps in a process costing system to assign costs to units completed and to units in ending work in process. Process costing is a management accounting function. Business owners use this function to accurately calculate as well as to apply the business costs for producing specific types of goods. Process costing provides costing system for homogenous goods , which usually have little differentiation from one item to the next item. Paper, petroleum, chemical, textile and food processing industries generally use process costing.... [tags: Process Accounting]
706 words (2 pages)
- Debate between Job Order Costing and Process Costing Table of Content PART 1 INTRODUCTION 1 PART 2 COSTING SYSTEM 2 1. Job Order Costing (JOC) 2 2. Process Costing (PC) 3 PART 3 ACCOUNTING METHODOLOGIES 4 1. Last-In-First-Out (LIFO) 4 2. First-In-First-Out (FIFO) 5 3. Comparison between LIFO and FIFO 6 PART 4 CASES STUDY 7 Case 1 – Law Firm 7 Case 2 – Furniture Manufacturing Industry 7 Case 3 – Bakery 8 PART 5 CONCLUSION 9 PART 1 INTRODUCTION This report to distinguish between and identify companies that may use the “Job Order Costing” and “Process Costing” which are the major types of costing systems that used in manufacturing and service company.... [tags: Accounting Finance Business]
1898 words (5.4 pages)
- Introduction Activity-based costing (ABC) is a costing method that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore “fixed” as well as variable costs. Activity-based costing is mostly used for internal decision making and managing activities while traditional costing method is used to provide data for external financial reports. Most organization uses activity-based costing as an addition system for using traditional absorption costing as sometimes the traditional cost system misleads the product’s profitability.... [tags: Costing Methods, Cost Information, Managers]
1171 words (3.3 pages)
- A cost accounting system is a framework used by firms to estimate the cost of their products for profitability analysis, inventory valuation and cost control. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Costing is essential for every organization, as every manufacturing and other department has to be assigned accurate budget for proper operation (Hansen, Mowen and Guan, 2006).... [tags: accounting, cost control, costing]
1059 words (3 pages)
- ABC and Traditional Product Costing Methods Activity Base Costing hereafter referred to as ABC and Traditional Product Costing Methods are used for the sole purpose of utilizing cost information to make strategic decisions that affect fixed and variable. Even though ABC is used by manager for making strategic decisions, it is not used independently. It is utilized to supplement official costing systems that are used for preparing external financial reports. (Garrison, Noreen, & Brewer, 2010) In the Traditional Product Costing Method emphasis is put on absorption cost used by manufacturing companies to calculate unit cost for the purpose of valuing inventories and determining cost of goods s... [tags: Television]
1106 words (3.2 pages)
- 1. Introduction: This report is the analysis and commendation of Pete’s business and how and where ERP system can be implemented to reduce the business complications. The company with 113 outlets and multiple sales channels, supplies both homegrown and off-the-shelf system to its customers. With 1,500 grocery stores, corporate offices, a website, and delivery trucks, the company was able to increase its revenue by 23% over a year which is remarkable. However, the outdated system which used to handle core business functions such as financial, order management, inventory management, fulfillment procurement and manufacturing was unable to cope with the ever growing business demand, which in... [tags: business process, web based system]
1799 words (5.1 pages)
- AN OVERVIEW OF TARGET COSTING Introduction Many managers often underestimate the power of target costing as a serious competitive tool. When general managers read the word "costing", they naturally assume it is a topic for their finance or accounting staff. They miss the fact that target costing is really a systematic profit and cost management process. What Is Target Costing. CAM-I defines target costing as the maximum amount of cost that can be incurred on a product and still earn the required profit margin from that product.... [tags: Business Accounting Finance]
1935 words (5.5 pages)
- Activity Based Costing ACTIVITY BASED COSTING AND MANAGEMENT : AN OVERVIEW Activity Based Costing (ABC) is more relevant than traditional costing in companies, where product mix is diverse in; batch sizes, physical sizes, degree or complexity, and raw material characteristics. ABC will also provide more decision useful information for the service industry, characterized by diversity in range of services provided. If the products in a plant or services provided posses similar characteristics, wither volume based or an activity based cost driver will provide reasonably accurate costs.... [tags: GCSE Business Marketing Coursework]
1441 words (4.1 pages)
- Activity-Based Costing ( ABC ) Summary The business environment in the 1990s is markedly different from that of the past when conventional cost accounting procedures were established. Activity-based costing (ABC), pioneered in the late 1980s, offered a new costing approach consistent with the changed environment. However, ABC did not diffuse rapidly into the business community. This article demonstrates why adopting ABC is important by documenting the potential of ABC in supporting contemporary managerial decision making.... [tags: Essays Papers]
3359 words (9.6 pages)
- Introduction Activity Based Costing (ABC) addresses internal operating concerns and is an augmentation to the traditional cost management system. It is not a replacement for traditional accounting, but makes use of the source documents provided from standard job costing systems. ABC looks at a business unitâ€™s events as cost drivers and assigns all company resources and accumulated costs against those events in a time-phased sequence. Revenue tracking provides management with a different point of view on the profitability of products and services, providing insight into pricing.... [tags: essays research papers]
940 words (2.7 pages)