Cost Accounting and Management Decisions - Assignment Example

Only on StudentShare

Extract of sample
Cost Accounting and Management Decisions

1). Management of this company believes in ranking the automobiles by the quantity of contribution margin earned for internal decision-making purposes. They view direct labor, direct material, and the variable manufacturing overhead as product costs while fixed manufacturing overhead as period costs (Hicks, 2002, p. 36). A major change in the company’s manufacturing has been conversion of most of the plants to produce smaller cars instead of the bigger cars that are seen as fuel inefficient. In the recent past, Ford Motor Company has concentrated of production and sell of small cars that achieve higher mileage on less fuel. This strategy has been influenced by the desire to cut on the global air pollution, something responsible for the global warming. The current global challenges have made the company embark on manufacturing varieties of the automobiles to ensure that the costs are balanced. For this reason, management has lately discouraged any production of goods that do not produce adequate sales to cover up its variable manufacturing costs (Weygandt, Kimmel and Kieso, 2011, p. 23). The company has maintained the main manufacturing lines of cars, trucks, buses, tractors, and their spare parts. ...
Download paper

Summary

Cost Accounting and Management Decisions Name: Institution: Ford Motor Company Description Henry Ford founded Ford Motor Company in 1903. Headquartered in Dearborn, Michigan, the company mainly produces three products automobiles, commercial vehicles and automobile parts. Ford is currently the second largest U.S based automaker but the fifth in the world…
Author : alvah35

Related Essays

Accounting for Management Decisions
17 pages (4267 words) Research Paper
Management Accounting
4 pages (1004 words) Research Paper
Cost Accounting
5 pages (1255 words) Research Paper
COST AND MANAGEMENT ACCOUNTING ESSAY
8 pages (2008 words) Essay
Management accounting for business decisions Trailer Construct plc
6 pages (1506 words) Coursework
Cost Accounting and Management Decisions
5 pages (1255 words) Essay
Managerial and Cost Accounting
9 pages (2259 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!