Examining management accounting within the Honda company

Table of Content

In this study, first I will speak about the background of the Honda Company and the history of its development. Second I would wish to state what the direction accounting is and how direction accounting can provide information to help the direction of the organisation and the organisation or the director can take a existent one solution to do more net incomes. Third through the illustration I will indicate out the strengths and failing of the director who make the program for the company. Last, I will give some recommendation and to do it better.


From the cyberspace I realized the background of the Honda Company and the solution they undertake how to confront the fiscal crisis in 2007 so I know how the direction accounting is of import for the company. They help company do the program on how to make the merchandise and the figure of the marker demand. Besides they ever tell the director about how to pull off the company can populate though when the crisis coming and they will cipher how to pass less money and acquire more merchandises to do the big net income for the company. So the direction accounting like an index visible radiation for the company.

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The background of the HONDA Company

Guangzhou Honda Automobile Limited Company which is besides called Guangzhou Honda was established in July 1, 1998. It is made by the Guangzhou Automobile Group and Japan ‘s Honda Motor Limited Company. Regard to the support, the two sides each have 50 % of the portions and the co-operation life is 30 old ages. There are presently two subordinate companies ; one is Huangpu mill and the other is Zengcheng mill and these two mills entire one-year production capacity reached 360000, the entire country of 1.6 million square metres. Guangzhou Honda presently employs a sum of 6800 people. Guangzhou Honda now chiefly produces the merchandise series Accord saloon, Odyssey multi-series saloons, Fit Series saloon and City-feng Fan Series saloons which were four series of 21 theoretical accounts.

July 19, 2007, Guangzhou Honda Company set up a centre which called Automotive Research and Development Center. This is the first independent investing by a joint venture to run as an independent legal entity automobile research and development establishments ; it included conceptual design, vehicle trial, development and other parts of the vehicle, including the independent development capablenesss. With the Guangzhou Honda Automobile Research and Development Limited Company was established, it marks that the formal ain trade name for the Chinese car industry to heighten the liberty of Research and Development capableness is of great significance, while the hereafter alterations in the form of China ‘s car market is bound to hold far-reaching influence.

April 20, 2008, Guangzhou Honda has launched its ain brand-‘Idea ‘ trade name indentify. It has a sense of scientific discipline and engineering and the future sense of silver-based colour, Brand individuality artworks coiling, like a Deoxyribonucleic acid molecule to show the ‘Idea ‘ of the trade name leader in the chase of scientific discipline and engineering, and ne’er stopped spirit. Meanwhile, Guangzhou Honda announced the ‘Idea ‘ of the first construct auto ; it is rooted in the ‘Futuristic ‘ and ‘dream ‘ Design construct. This is the best manner to reading of manner and tendencies of the future life of the air current way and inspires new coevals of Chinese for a hereafter of limitless imaginativeness, to make alone centripetal impact and alone moving ridge of the hereafter. December 12, 2008, Guangzhou Honda unveiled a new corporate motto — ‘a sense of traveling the universe ‘ , at the same clip announced its entry into mid-size auto market and pushed out the first mid-size car-CITY-feng fan. ‘A sense of the universe ‘s moving, ‘ it represented of the Guangzhou Honda and every employee attitude: on the emotional demands of consumers and the societal environment alterations, penetration into the nature of alteration taking to a alone attack to dispute new things, to make a new tendency to make a new value, and is full of surprises to portion with consumers traveling.

In the domestic auto market, the Guangzhou Honda developments a way which is ‘market-oriented, less investing, speedy end product, and turn overing development ‘ The past 10 old ages, Guangzhou Honda adopts a rolled development theoretical account, to accomplish a production capacity from 10000 to 360000 springs, and the merchandises from the Accord a trade name expanded to Accord, Odyssey, Fit, Feng Fan under four trade name names, merchandise line coverage of high-class autos, Chevrolet, economic Model, MPV, etc all degrees. Guangzhou Honda to accomplish annual production and gross revenues to a new degree, to the December of 2008, Guangzhou Honda has more than 1.5 million cumulative cars production and gross revenues to go the 5th cumulative production in China which become the gross revenues of 1.5 million passenger super-car companies. In April 2005, 2006 and 2008, Guangzhou Honda 3rd won the Management Case Center of Peking University and the Economic Observer newspaper named ‘China ‘s most well-thought-of companies ‘ .

What is Management Accounting

Management accounting is separate from the traditional accounting and stand side by side with the fiscal accounting, direction accounting focal point on endeavors to better direction, increase economic efficiency services to an endeavor accounting subdivision. The object of modern direction accounting hard currency flow, hard currency flow runs through the modern direction accounting from get downing to stop.

Of modern direction accounting maps, from the simple fiscal accounting extended to decide the past, command the present, be aftering for the hereafter of organically combined. ( 1 ) Resolved in the yesteryear. Management accounting analysis of fiscal accounting in the past mainly for the information provided for farther processing, transition and extension to better run into the planning demands of the hereafter and control now. ( 2 ) Control now. Management accounting drama an of import function in commanding through a series of indexs, amendments in clip and rectification in the execution procedure divergences, so that the endeavor ‘s economic activities in rigorous conformity with the preset decision-making. ( 3 ) Planning for the hereafter. Forecasting and be aftering for future decision-making is the chief signifier of modern direction accounting in this function are: full usage of the available wealth of information to transport out strict quantitative analysis, assist direction in an nonsubjective appreciation of the state of affairs so as to heighten the scientific nature of anticipation and decision-making.

How direction accounting plays his function

The finicky crisis in 2007 is the best illustration for account how to through the direction accounting to assist the company to get the better of the job. When the crisis comes, the company ‘s export is lag, the domestic car market demand lag on the impact of independent trade names, and endeavors are confronting their ain trade names fierce competitory environment intensified. So what should we make when we faced such serious jobs? The director through the market visiting and see the instance which the company faces and utilize the cognition of direction accounting and the engineering to developed programs for solve the bad solution.

The solutions are first, in merchandises, in conformity with the merchandise and engineering debut, with the universe and suit the rule of China ‘s national conditions, Guangzhou Honda one start on the debut of the latest engineerings in the universe today, and turn overing engineering development, and keeping the degree of synchronism with the universe. Guangzhou Honda introduced the Accord, Fit, Odyssey, Jeffrey Fan series autos, in environmental protection, safety, energy efficiency, are at the domestic degree theoretical accounts with the taking degree, put the universe ‘s newest engineering to the Chinese consumer. From the research the direction indicates that the company should develop its merchandise non merely in China besides the universe. In the production of engineering, Guangzhou Honda Factory Whampoa owns a domestic highest degree of flexible production lines ; production lines can be a sum of Accord, Odyssey, Fit and four-feng Fan merchandise line. This is one of the few in China. Guangzhou Honda is based on the graduated table of production at different phases of development, in conformity with alterations in engineering, integrated operating environment, the extent of people ‘s prep, the best cost, best lucifer grade, quality confidence and many other factors, the full potency of employees and machinery sensible function endeavoring to accomplish the optimum combination of people and machines. At present, Guangzhou Honda Factory Whampoa production line can accomplish the one-lane two-class Nissan 1000 Units per 51 seconds to bring forth a streetcar, which is presently the highest degree.

Second, Guangzhou Honda quality does non hold a individual section ; put the quality direction maps into the formation of merchandise quality in the relevant section. The direction accounting points out that Guangzhou Honda non merely concentrate on production procedure quality control, and the first in China to set quality direction to the provider and the market at both terminals of the extension, and the whole procedure of full execution of quality direction. First of all parts of the procurance, in line with the common destiny of the rigorous control the quality of the construct of parts and constituents, Guangzhou Honda ‘s provider of parts and constituents in conformity with the rigorous choice procedure, in footings of quality, monetary value, bringing, research and development capablenesss, direction degree and production engineering, such as six facets ( QCDDME ) to carry on a comprehensive rating of the consequences based on the rating and so choose a suited provider. Through these steps, and purely command the quality of parts and constituents.

Third, Guangzhou Honda will take the lead in the domestic import to the after-sales service as the centre, set vehicle gross revenues, after-sales service, trim parts supply, information feedback of the particular four-in-one gross revenues and service theoretical account. Buyers through the proviso of a comfy environment, professional sound after-sales service, echt parts and constituents, leting users to purchase a auto to the auto from the whole procedure of service have been first-class. At the same clip, Guangzhou Honda distributer through the direction of extension services and client support and long-run good cooperation relationship of common benefit and seek common development. At first-class quality to set the user at the same clip, Guangzhou Honda besides conveying a new Chinese consumer service construct.

Fourth, Guangzhou Honda to put up at the early phase of puting up its ain Research and Development Center engaged in mass production of trial theoretical accounts and proving work. In the usage of their ain research and development centre at the same clip, the Guangzhou Honda joint venture at independent research and development on the Chinese automotive industry to make the first of its sort, was set up by the first joint venture to put in their ain independent trade name development automotive research and development company – Guangzhou Honda Automobile Research & A ; Development Limited companies, China ‘s car industry has opened up a trade name new thought of building. The survey covers the auto in all countries of engineering research and development ; will import advanced equipment, building, environmental, safety, environmental protection, hit, noise, emanations and power maps, such as the pilot trial, and a large-scale major trial field, wind tunnel trial chamber and other installations, is committed to go a “ to advance the China Automotive Technology and upgraded to the end, self-reliance self-innovation to develop the technological degree with the universe ‘s prima automotive merchandises DreamWorks Technology. ”

Fifth, All along, the Guangzhou Honda to energy preservation and environmental protection are the duty of the rich sense of societal duty to go the “ environment-friendly ” endeavor. Guangzhou Honda Factory Zengcheng at the beginning of undertaking readying, “ the new energy economy and environmental protection building Factory ” Factory Zengcheng is one of the aims of the undertaking building. At the thought of energy-saving environmental protection, under the counsel of Zengcheng Factory at the design and building procedure, Guangzhou Honda has taken a full history the issue of environmental protection, in the intervention of industrial and populating “ three wastes ” and noise decrease has invested to a great extent into the most advanced environmental engineering, and strive to construct the most influential Green Factory. So these are the solutions that the Honda Company taken by and it exert the biggest map and we can see the importance of direction accounting in company.

The failing and strengths of analysis

I think from the analysis of the Honda Company we can see the strengths of the company is that they have done good in itself such as sing the market and acquiring information and utilizing the direction accounting to analysis and work outing the jobs. But I want to indicate out that the failing of the company is when they suffered the hard jobs, ourselves is the better manner but combine with other company and jointly come up with a solution to the job. This manner non merely straight but do the two company closer than earlier.


Now, I think we will hold a clear definition of the map of company direction accounting. It functions is non merely this and I believe direction accounting will play the most of import function in battle of the scientific discipline and engineering in the hereafter. So we can state that the direction accounting is a beacon of a company.


So, non merely for ourselves but the company, we should besides larn about the direction accounting and larn how to utilize it. Merely like this we can utilize the cognition to work out the jobs. It will assist us pass less and gain more. The director of the company besides should cognize the state of affairs of the company and the market that can assist they do determination every bit shortly as possible.

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Examining management accounting within the Honda company. (2016, Nov 26). Retrieved from


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