Kaizen Costing Case Study

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5.0 How does the improvement of the system affect management accounting system?
Businesses who carry out management accounting system in the workplace definitely have advantages in overall performance. For instance, through cut costs and building capital to afford on future expansion. However, according to Kaizen Costing theory, nothing is ever perfect. Therefore, improvements are always possible. It relates directly to a continuous improvement to reduce those variable costs by removing waste without any compromise quality of the product. By understanding the reason of the problems incurred, the company can control costs more effectively. Therefore, improvement of the system is a must to create better management accounting.

First of all, human resource is one of the major assets for an organization. Thus, employee attitude must be recognized as this may create a major issue and directly affect the atmosphere and productivity within an organization, no matter which system is used. Kaizen Costing techniques are
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Kaizen is adaptable that it can be applied to any type of the industry which are including healthcare, retail, banking and transportation. Kaizen costing is a concept that many people and organizations know to be successful. Toyota is one of the well-known organization for using kaizen to achieve much better production results.
The ideology of kaizen is an essential part of the Toyota and Toyota Production system since kaizen means there is no process is perfect and understands that there is always room for improvement, a thought that resonates within Toyota. The team members of the organization are aware of their roles within the kaizen guidelines and the responsibility each one of them has discovering new ways of improving the operation
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