Ford the Organization and Its Research Paper

Download this Research Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Research Paper:

What the accountant manager basically does is to assess the costs, inputs and processes associated with the organizational products and services. They then organize this gathered information in a way that managers know the costs per unit and the labor per unit incurred in the making of a respective product or service, as well as the number of vehicles employed in the distribution of the products or services (Williamson, 2003).

Overall, the role of accounting management is that of providing the organizational leaders with sufficient and adequate information to be used in the decision making process. This is true in all organizations, including Ford Motors Company, where managers use accounting data to reach the established desiderates, but also to assess the microenvironmental situation and establish SMART goals (Specific, Measurable, Attainable, Realistic and Time framed).

An actual analysis of the management accounting function within Ford is quite a difficult task for the simple reason that the process is generally designed for internal usage. Otherwise put, the means of collecting, processing and using the accounting data is subjected only to the interest of managers and is not made public to the shareholders and other stakeholder categories. Nonetheless, a look at the company's public documents will manage to shed some light into the function of accounting management.

Ford Europe is headquartered in Spain and the manager of this entity has released some information vital to the current endeavor. Through extrapolation, it can be believed that the accounting function at the Spanish headquarters is very much similar to the accounting function in all Ford facilities. In this order of ideas, the Ford headquarters centralize cost information from numerous plants, meaning then that the accounting system is very comprehensive and complex -- Ford Spain for instance centralizes cost information from 28 European plants. The information collected is structured into six systems, which are in fact the pillar elements in the accounting process. These systems are the materials information system, the finished products information system, the standard costs and deviation information system, the non-productive materials information system, the budgetary control system and the system for cost and variance analysis (Bhimani, 1996).

The model used in management accounting at Ford is based on standard cost, which also includes indirect costs. "Management accounting is based on a standard cost model. The availability of standard costs for each part of the production process enables variance calculations at different stages of production. Indirect costs included as part of standard costs are applied using a rate proportional to labor input. It is to be noted that the proportion of input decreases in relation to indirect manufacturing costs. This is also the case for inventories -- both work in process and finished products" (Bhimani, 1996).

Once the information is adequately collected and processed by the accounting manager, he is able to draw an informed conclusion relative to the topic of inquiry. The opinion will then be sent to other managers within the organization, which will base their decisions on the findings of the accounting department. Other organizational divisions that would make use of the information include engineering, IT, marketing, manufacturing or executive management. Take for instance the recent case in which the Japanese manufacturers were increasing their presence and popularity within the American market by selling small size and fuel efficient engines. The accounting managers at Ford Motors would have assessed the implications of Ford's movement towards this type of vehicles and the renunciation to large size and luxurious cars. The findings probably indicated that the costs of such an endeavor are tremendous and the estimated figures would be sent to all organizational departments. The executive managers could then have held meetings with representatives of all departments and discussed the findings. The actual course of events is undisclosed to the public but fact remains that, at that stage, Ford decided to maintain their product line of luxurious and large size vehicles, facing now the consequences of this decision.

References:

Bhimani, A., 1996, Management Accounting: European Perspectives, Oxford University Press, ISBN 0198289669

Williamson, D., 2003, Introduction to Management Accounting, St. Martin College, Retrieved from http://www.staff.ucsm.ac.uk/mpratt/Introduction%20to%20Management%20Accounting.ppt on July 14, 2009

2009, Despite Record Losses, Ford Refuses TARP, Directorship, http://www.directorship.com/ford-won-t-take-tarp-money last accessed on July 14, 2009

2009, Ford Motor Company, Hoovers, http://hoovers.com/ford-motor/--ID__10597 -- /free-co-factsheet.xhtml last accessed on July 14, 2009

Ford…[continue]

Cite This Research Paper:

"Ford The Organization And Its" (2009, July 14) Retrieved November 29, 2016, from http://www.paperdue.com/essay/ford-the-organization-and-its-20614

"Ford The Organization And Its" 14 July 2009. Web.29 November. 2016. <http://www.paperdue.com/essay/ford-the-organization-and-its-20614>

"Ford The Organization And Its", 14 July 2009, Accessed.29 November. 2016, http://www.paperdue.com/essay/ford-the-organization-and-its-20614

Other Documents Pertaining To This Topic

  • Ford the Many Different Aspects of Management

    Ford The many different aspects of management, leadership and all the tactics inherent within these concepts provide a wide array of selections for the many aspiring business professionals and decision-makers in the corporate world today. Understanding the key components of an organizational system are beneficial in realizing the true potential of any single agency, company or organization. The organizing function of management is perhaps the greatest tool leaders have at their

  • Ford Pinto

    Ford Pinto What happened to the Ford Pinto? Ford Motor Company had intended to compete with other automobiles on the market that were smaller and used less gas. But something went terribly wrong along the way. This paper explores the details that led ultimately to the demise of the Ford Pinto -- and to the deaths and injuries of innocent consumers. Why was the Pinto developed in the first place? Ford Motor

  • Ford Mustang Financials as a Company Ford

    Ford Mustang Financials As a company, Ford has improved its sales in the past two years, after struggling during the recession. Ford's revenues in the last fiscal year (2011) were $136 billion, compared with $116 billion in FY2009 and $168 billion in FY2007. The company's profits have also fluctuated over that time period. FY2011 saw a profit of $20.2 billion, compared with $2.7 billion in FY2009 and a loss of $2.8 billion

  • Ford Believes That the Four Cornerstones of

    Ford believes that the four cornerstones of competitive advantage are efficiency, quality, innovation and customer responsiveness. Ideally, the company would be able to execute on all of these at once, something that is a challenge for even the best firms. However, if that is how Ford wants to compete, then the pursuit of these advantages must be tied into the company's strategy, and for these to be a genuine competitive

  • Ford Motor Company s Current Market Position Company

    Ford Motor Company's Current Market Position Company Overview Quality Issues at Ford Motor Company Human Resources Role Strengths Weaknesses Opportunities Threats Financial Impact of Recalls on Ford Motor Company The Ford Motor Company was founded by Henry Ford in 1903 who along with 11 other investors signed the article of incorporation for the organization. Since then, the Ford name has experienced tremendous growth and has been awarded with substantial significance in the automotive industry. It is one of the

  • Ford Motors Company Ford Motor Company Is

    Ford Motors Company Ford Motor Company is an American Multinational company that was founded by Henry Ford in the year 1903. Ford's headquarter is in Dearborn Michigan in the United States where it specializes in the production of automobiles both commercial and luxury. Under its commercial category of vehicles, it trades under the Ford brand while its luxury cars trade under the Lincoln brand. Ford Motors is a well established company

  • Ford Motor

    Ford Motor Introduction of the company - Ford Ford Motor Business began in 1903 by Henry Ford and it has constantly remained within family group possession ever since that period. The business created and applied assembly line manufacturing from the launch of the Model T. In the year 1909, and created planes and automobiles for U.S. Allies in The Second World War. Ford has worked globally since 1904, in the event it


Read Full Research Paper
Copyright 2016 . All Rights Reserved