Financial Decision Making

Financial Decision Making
Assignment 2 (2015-2016 Sem I)

Background:

Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles. Toyota was the largest automobile manufacturer in 2012 (by production) ahead of the Volkswagen Group and General Motors. In July of that year, the company reported the production of its 200-millionth vehicle. Toyota is the world’s first automobile manufacturer to produce more than 10 million vehicles per year.

Reference:
https://www.toyota-global.com/

You are required:
a) Suggest two types of fixed costs and two types of variable costs of Toyota Motor Corporation. Explanations of your suggestions are required.
(10 marks)

b) Discuss how relevant costing can support the management of Toyota Motor Corporation to make business decisions.
(40 marks)

c) Discuss the differences between inventory turnover and manufacturing cycle efficiency. Discuss how the manufacturing cycle efficiency can be used for improving Toyota Motor Corporation production process.
(35 marks)

Please note:
i) To achieve good marks your assignment should show detailed evidence of research;
ii) 15% of the marks available are for quality of English (10%), and proper referencing according to the Harvard method (5%);
iii) This assignment carries 30 % of the total module weighting
iv) Please ensure you attach the marking grid as page 2 of your answer
(15 marks)

(Total 100 marks)