1- i need conclusions and recommendations follow logically the body of the paper for Ford motor company about his cost accounting .

2-here is my paper:

Ford Motor company By Raphael Le Biez December, 2016 Abstract This paper is going to talk about Ford motor company who become one of the largest automakers. For example, in this paper I will show and outline some points of how Ford operates in the automobile industry. However, Ford has some strong competitors in the U.S market and internationally. The implementation of new technologies affected a lot of the way vehicles were manufactured. In that case the automobile industry is coordinated to be an industrial production system. This paper will start with a short description of the history of Ford. This brief summary will include some information background of where Ford started in the beginning. Keywords: U.S market, automakers. The company I have chosen to do my research paper is Ford. Here is a brief history of the company. The creator of that company is Henry Ford. One of America's foremost industrialists, Henry Ford revolutionized assembly-line modes of production for the automobile. Born on July 30,1863, near Dearborn, Michigan,at the age of 16, Ford left home to take an apprenticeship as a machinist in Detroit. In the years that followed, he would learn to skillfully operate and service steam engines, and would also study bookkeeping. In 1896, Henry Ford buildt the Quadricyle. In 1903, Henry Ford established the Ford Motor Company.

History of the company Ford introduced the model T in October of 1908, and for several years, the company posted 100 percent gains. However, more than for his profits, Ford became renowned for his revolutionary vision: the manufacture of an inexpensive automobile made by skilled workers who earn steady wages. As a result, Ford sold millions of cars and became a world-famous company head. The company lost its market dominance but had lasting impact on other technological development and U.S infrastructure. To end up, Henry Ford died of a cerebral hemorrhage on April 7, 1947, at the age of 83, near his Dearborn estate,Fair lane. Ford, considered one of America's leading businessmen is credited today for helping to build America's economy during the nation's vulnerable early years. The Ford Motor Company was founded by Henry Ford in the year 1903. It is the leader in the car manufacturing segment for a long time now. Ford had introduced a unique manufacturing programs which were replicated by many firms and the concept designed by Ford started to be called as Fordism. The major competitions for Ford were Toyota, Honda and Hyundai. Especially Toyota which had taken the rank of number 2 from Ford in the US market. Ford is renowned for its Operation Management techniques around the world.

The companys industry The Ford company's fiscal year ending for the last two years; Ford got $135.8 billion during the period of 2014-2013 in the area of Automotive Revenue. Ford company's sales has increased by $4.8 billion the next year of 2015 compared to 2014. In general terms of Automotive sector in 2015 has an increase in operation margins from 4.6% to 6.8%, also for operating related cash flow goes from $ 1.9 to $3.6 billion. The company's Annual report shows an increase in all sectors in 2015 compared to 2014. This incredible results is due to Ford operates a revolution in term of production. Those production assembly lines became one of the largest automakers. For example, Ford has more than 65 plants worldwide. The Ford company's industry is all about the cars and the engine motors inside each car. The vision of the motor company is everyone is working together to make people's lives better through automotive and mobility leadership. The Ford company's products are made in USA and people are proud of it. The industry that Ford is in has a conduct of ethics to respect for their clients such as quality, safety, green sustainability and smart product. For example, in the automotive industry Ford is using 3D printing to revolution the automotive prototyping process. You can see a lot of cars manufactured by Ford are on the road. For instance, body of work is the F-150 has been the best selling in the United States for the last 32 years now .

The Ford company's primary source of revenue is selling automobiles in the US market and the secondary is selling in the Western European countries. As I said previously an example of top sale for Ford is the F-150 who is the leader in the market about 32 years now. Yes the F-150 has been for 32 years now the bulk of Ford's revenue in term of pick-up vehicle sold. Here are some competitors such as General Motors company and Toyota Motor corporation. As the whole industry is profitable or not. It is depend on manufacturing efficiency, product quality and effective marketing.

Accounting system Ford uses a standard costing system that a manufacturer's inventories and costs of goal sold will begin with amounts reflecting the standard costs, not the actual costs, of a product. Manufacturers of course, still have to pay the actual costs. As a result there are almost always differences between the actual costs and the standard costs, and those differences are known as variances. It is typically considered as Direct Labor if the cost of the work effort physically converts to material to a product. The worker who actually assembles the components (circuit board, buttons, screen and case) into a finished product such as a car model would be "direct labor" Direct materials are tangible components of a product. They can be easily, conveniently and economically traced directly to the finished product. Some specific direct materials used by Ford in the production of their vehicles will be the steel include in an automobile. The circuit board included in a radio. The glass materials for the windows of their vehicles. Overhead costs are considered fixed costs, that is, they do not rise or fall directly with the cost of goods sold. Overhead costs are important to monitor and control. Since they are not directly related to revenues, they can become a larger share of the total expenses and burden a company, soaking up net income and profits. Here are some of the specific overhead costs that Ford has like the electricity used to operate the factory equipment and the building. Also, overhead costs can be linked with all the expenses recorded on the income statement such as administrative overhead. Variable costs; for Ford would be an increase in or continued volatility of fuel prices, or reduced availability of fuel. An increase in fuel prices, continued price volatility, or reduced availability of fuel, particularly in the United States, could result in weakening of demand for relatively more-profitable large cars, utilities, and trucks, while increasing demand for relatively less- profitable small vehicles. Continuation or acceleration of such a trend beyond our the company's current planning assumption, or volatility in demand across segments, could have a substantial adverse effect on our financial condition and results of operations. Since the sales increased there will be an increase in the direct materials to manufacture the vehicles. Based on the costs of manufacturing my estimates of these variable costs are commissions and production supplies. Due to the sale increase, salespeople are paid a commission only if they sell a car. Production supplies is based on the amount of machinery usage such as the oil used by the machinery. Here the cost depends on the production volume of a machine. Fixed costs; Substantial fixed costs for the company include substantial pension and postretirement health care and life insurance liabilities impairing liquidity or financial condition. Ford defined benefit retirement plans in the United States that cover many of the hourly and salaried employees. The company provides pension benefits to non-U.S. employees and retirees, primarily in Europe. In addition, the employer and certain of their subsidiaries sponsor plans to provide other postretirement benefits (OPEB) for retired employees (primarily health care and life insurance benefits). These benefit plans impose significant liabilities and additional cash contributions, which could impair in the liquidity. Based on this information my estimates of these fixed costs are salaries, utilities and insurance. Let start with salaries which is the amount paid to employees to theirs hours worked. Secondly, utilities is the cost of electricity, gas, phones spent by the company. Thirdly, insurance is a periodic charge under an insurance contract(eg. To protect the inventory)

Break-even point in units and in sales dollars Estimate the companys break-even point in units and in sales dollars. Break-even points in units=Total fixed costs/contribution margin per unit Break-even point in dollars=Total fixed costs/contribution margin ratio Revenues=$100,000 Variable expenses(non-manufacturing costs)= 30,000 Fixed expenses(manufacturing costs, restructuring e.g)= 60,000 Net operating income $ 10,000 The contribution Margin (Sales-variable expenses) $100,000 30,000= 70,000 The contribution Margin is 70% 60,000/70%=$85714 The break- even point in sales in dollars $85714

Estimating the companys operating leverage for Ford Operating leverage measures is a companys fixed costs as a percentage of its total costs. It is used to evaluate the break even point of a business, as well as the likely profit levels on individual sales. To calculate operating leverage: contribution margin/net operating income Ford has a contribution margin of 70% and net operating income of $10,000, which gives it a degree of operating leverage of 7.Ford sales then increase by 20%, resulting in the following financial results:(based on the previous numbers A.) Revenues $120,000 Variable expenses 36,000 Fixed expenses 60,000 Net operating income $24,000

The contribution margin of 70% has stayed the same, and fixed costs have not changed. Because Fords high degree of operating leverage, the 20% increase in sales translates into a greater than doubling of its net operating income.

Where break-even and leverage information would be of value to the company. Management of Ford should constantly monitor the breakeven point, particularly in regard to the last item noted, in order to reduce the breakeven point whenever possible. Outsourcing. If an activity involves a fixed cost, consider outsourcing it in order to turn it into a per-unit variable cost, which reduces the breakeven point. Pricing. Reduce or eliminate the use of coupons or other price reductions, since it increases the breakeven point. Also, increase price points whenever this is acceptable to customers. Cost analysis. Continually review all fixed costs, to see if any can be eliminated. Also review variable costs to see if they can be eliminated, since doing so increases margins and reduces the breakeven point. Margin analysis. Pay close attention to product margins, and push sales of the highest-margin items, to reduce the breakeven point. When using the operating leverage measurement, constant monitoring of operating leverage is more important for a firm having high operating leverage, since a small percentage change in sales can result in a dramatic increase (or decrease) in profits. A firm must be especially careful to forecast its revenues carefully in such situations, since a small forecasting error translates into much larger errors in both net income and cash flows. Knowledge of the level of operating leverage can have a profound impact on pricing policy, since a company with a large amount of operating leverage must be careful not to set its prices so low that it can never generate enough contribution margin to fully offset its fixed costs.( specially in other markets such as China) Inventory system Ford uses a perpetual inventory system. This is an approach where inventory accounting is updated continuously as transactions are made. The company uses that system because the computer system earn time and do the job by tracking every products get going into the inventory and his is very accurate and really close to the real inventory. Nowadays, big companies like Ford can afford to co-work with computer systems to help them to earn time in their inventory. On the other hand small company business does not need to have an electronic-tracking system because their using a periodic system inventory which is the most common used in that case. Basically, the company uses this sophisticated system because the technology evolved during time but before all companies rely on the periodic system where you have physical count every product to have a track of your inventory. For example, cost assignment to cost of goods sold and ending inventory are designed in the end of an accounting period. However, a perpetual inventory system includes a point-of-sale system which drives changes in the inventory levels. For instance, you can have a decrease in window product, so cost of sales is decreasing too but the sale is made increased.The result this systems will help to manage the inventory levels and if the company needs to purchase some additional inventory, they can. There is another advantage for the accountant. The accountant does not have to adjusted manually but the company is not protected about the loss( breakage or theft) There are several methods used in accounting such as FIFO (first in, first out) or LIFO (last in, first out).For example, consider Ford stocking the cars in the showroom, where a customer purchases the item in front. The oldest car manufacturing will always be sold first. As the transactions is occured, the perpetual inventory system will automatically been updated too. Under the perpetual LIFO the daily interaction throughout a reporting period. The cost can change at any time because items are sold could vary throughout the period due to the set of cost layers. An effective cost management system is one that aims at minimizing cost in such a manner that it allows for a sufficient margin per unit of product.Through curtailing unnecessary costs & incurring costs to such a level that anything below that seems unviable and not feasible to the production process. By making that cost almost indispensable to the production of the budgeted quantities. This will not only improve the profitability but also increase the competitiveness of a company. Yes, Ford has an effective cost management because in the domestic market Ford is still the leader and in the internationally Ford is growing increase each years.Also this company has some strength strong managerial accounting that make me think that. This company uses as a base for computing prospective cost and resultant price of a product.In terms of strength it is totally flexible and hence, can be revised any number of times in keeping with the ongoing economic scenario(fluctuations of the price of the direct material e.g).

REFERENCES

Schmiedicke, R. E., & Nagy, C. F. (1978). Principles of cost accounting. Cincinnati: South-Western Pub. !industry_name! - Industry Facts and Trends. (n.d.). Retrieved November 30, 2016, from http://www.hoovers.com/industry-facts.automobile-manufacturing.1019.html Ford, H. (2008). My life and work: An autobiography of Henry Ford. Place of publication not identified: BN Publishing. Home. (n.d.). Retrieved November 30, 2016, from http://corporate.ford.com/homepage.html Build & Price. (n.d.). Retrieved November 30, 2016, from http://www.ford.com/