Management Accounting ACC73001 ADVANCED MANAGEMENT ACCOUNTING

The following links could be helpful: (These links were given to be used when wring the report)
https://www.mtvehicles.com/blog/how-much-does-it-actually-cost-manufacturers-to-make-a-car/

A Breakdown of How Much Does It Cost to Make a Car

Can use other sources apart from the links given above
*** Note : Use Harvard Referencing style
Subject : Management Accounting
ACC73001 ADVANCED MANAGEMENT ACCOUNTING
REPORT ONE: Product pricing & managing supply chains
Session 1 2020
This assignment is worth 20% of overall final grade
See MySCU for more details about the time and submission requirements
Case Company: Toyota
“Toyota Australia is a subsidiary of Toyota Motor Corporation, which is based in Japan. It markets Toyota
products and manages motorsport, advertising and business operations for Toyota in Australia. It is also
responsible for Lexus vehicles in Australia.”
Background to business scenario:
“Toyota’s most affordable hybrid RAV4 is the best new vehicle available on the Australian market,
according to judges of the prestigious Drive Car of the Year Awards.
4/5/2020 54313 – The following links could be helpful: (These links were
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The hybrid RAV4 – also named the best mid-size SUV – won the Drive award ahead of 19 other category
winners, three of which were also Toyota vehicles.
It is the third headline media award for Toyota’s all-new RAV4 in recent weeks.
A second Toyota hybrid, a top-of-the-line Camry SL, was named best medium car, while Toyota’s reborn
GR Supra sports car and the “king off the road” turbo-diesel LandCruiser 200 Series VX topped the
judging in their competitive sets.
Drive editor Trent Nikolic said Toyota’s RAV4 had moved the game forward significantly in a segment
that attracted the biggest number of new-vehicle buyers.
“Medium SUVs show no signs of losing popularity and the RAV4 is the best of the current crop,” Mr
Nikolic said.
“Always a strong performer, the redesign, and especially the hybrid drivetrain, put the RAV4 right at the
pointy end of the field,” he said.
Toyota Australia President and CEO Matthew Callachor said Toyota was proud to receive the Drive
awards because of the focus on assessing cars with consumers in mind.
“As our first hybrid SUV in Australia, we have been thrilled to see how the all-new RAV4 has been
received, as a popular choice for customers delivering a renewed sense of style, performance, refinement,
advanced safety features and driving dynamics,” Mr Callachor said.
“We are proud that the Toyota RAV4 Hybrid has now also received such critical acclaim from Drive’s
motoring experts.”
You, as a management accountant consultant have been engaged by the Manager of Fleet Pricing, Toyota
Australia to review the current pricing strategy of three of their vehicles from the RAV4 Hybrid range:
1. 2019 Toyota RAV4 GX 2WD HYBRID
2. 2019 Toyota RAV4 GXL AWD HYBRID
3. 2019 Toyota RAV4 CRUISER 2WD HYBRID
As a minimum Toyota sets a profit margin of 20 per cent on all products.
Required:
Write a report (Maximum 1,500 words, 10% (+/-) will be accepted with no penalty) to the Manager of
Fleet Pricing, Toyota Australia to outline your pricing analysis and recommendations. The report should
include:
• An analysis of the target costs of the three RAV4’ being reviewed, given the target profit margin and
using the current pricing information you can obtain. Please include links to your sources as an appendix
to your report.
• Provide recommendations regarding how to achieve and/or maintain the target profit margins. Consider
supply chain opportunities to improve costs and provide industry related research to support your
recommendations.
• Explain how value chain analysis could help Toyota Australia to identify value-added and non-valueadded activities (provide examples) to find opportunities to improve costs.
• Provide recommendations regarding the current prices of each product comparing cost-based and
market-based pricing strategies and providing at least one advantage and one disadvantage of each pricing
method. Please include your calculations and research supporting your market-based strategies as an
appendix to your report.
• Recommend a final price for each product, whether it should be kept the same, increase or decrease to
the Manager of Fleet Pricing.
• Complete the assignment coversheet and attach it to your submission.
• Use the additional materials provided and your own research to complete the required sections of the
report.
• Where appropriate use Harvard style referencing.
The report should be submitted as a WORD (not PDF) document.
Assessment Criteria
4/5/2020 54313 – The following links could be helpful: (These links were
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Poor Unsatisfactory Satisfactory Good Excellent
Analysis of Target Costs & Recommendations to maintain target margins (7.5 Marks) 0 – 1.5 Marks
Target cost analysis & recommendations are mostly inaccurate and incomplete. An understanding of the
application of the course content in a business context has not been demonstrated. 1.5 – 3 Marks
Some Target cost analysis & recommendations are accurate but there are inconsistencies in the data or
basic calculations are incorrect. Assignment instructions have not been followed and key items have been
left out. 3 – 4.5 Marks
Most Target cost analysis & recommendations are accurate but there are inconsistencies in the data or
basic calculations. A reasonable understanding of the application of course content has been demonstrated.
4.5 – 6 Marks
All Target cost analysis & recommendations have been prepared and are mostly accurate – minor errors
arising from careless mistakes and lack of attention to detail. A very good understanding of the application
of course content has been demonstrated.
6 -7.5 Marks
All Target cost analysis & recommendations have been accurately prepared. An excellent understanding of
course content has been demonstrated and executed.
Explanation of value chain analysis and Recommended Pricing Strategy (7.5 Marks) 0 – 1.5 Marks
Benefits of value chain analysis and pricing recommendations mostly inaccurate and incomplete. An
understanding of the application of the course content in a business context has not been demonstrated. 1.5
– 3 Marks
Some of the benefits of value chain analysis and pricing recommendations are accurate but there are
inconsistencies in the data or basic calculations are incorrect. Assignment instructions have not been
followed and key items have been left out. 3 – 4.5 Marks
Most of the benefits of value chain analysis and pricing recommendations are accurate but there are
inconsistencies in the data or basic calculations. A reasonable understanding of the application of course
content has been demonstrated.
4.5 – 6 Marks
All of the benefits of value chain analysis and pricing recommendations have been prepared and are
mostly accurate – minor errors arising from careless mistakes and lack of attention to detail. A very good
understanding of the application of course content has been demonstrated. 6 -7.5 Marks
All of the benefits of value chain analysis and pricing recommendations have been accurately prepared.
An excellent understanding of course content has been demonstrated and executed.
Overall Presentation of Report (5 Marks) 0 – 1 Marks
Presentation is unprofessional with numerous spelling and grammatical errors and it does not cover the
key requirements set out in the assignment instructions.
Inadequate analysis.
Not presented in the format of a business report.
Very limited use of visual aids.
1-2 Marks
Presentation is reasonable but the key issues have not been adequately addressed. Spelling and
grammatical errors make the report unpresentable requiring the report to be rewritten before it could be
presented. Opinions expressed lack insight. Not all aspects of a business report format have been utilised.
Limited use of visual aids. 2-3 Marks
Presentation is reasonable and the key issues have been addressed but more insight into the business could
be demonstrated. Some minor spelling and grammatical errors. Most components of a business report
format have been incorporated. Reasonable use of visual aids.
3-4 Marks
Good, well written presentation and all issues have been covered. Demonstrates a solid insight into the
business and recommendations are appropriate. Relevant external sources (at least 2) have been used to
support recommendations and these have been appropriately referenced. All components of a business
report format have been incorporated. Good use of visual aids. 4-5 Marks
4/5/2020 54313 – The following links could be helpful: (These links were
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Excellent presentation with no spelling or grammatical errors.
Demonstrates excellent insight into the business operations and external issues that may affect the
business.
Extensive use of relevant external resources to support recommendations. Appropriate referencing. All
components of a business report format have been incorporated. Excellent use of visual aids.

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