Finance and Accounting Assignment Research Paper

Finance and Accounting engagement - Research Paper ExampleIrrespective of such disruptions, in the year 2011, Ford completed its consecutive three years of earning profit in relation to its operating cost and, therefore, announced the payment of dividends to its cute partakeholders in five years, which, in turn, has significantly motivated the company to preserve its financial efficiencies in the enormous run (Ford beat back Company). Thesis Statement The report will analyze various divisions and departments of Ford where costs are allocated currently. Furthermore, it will provide recommendations based on the importance of divisions and departments about effective allocation of costs. parcelling of Costs The automobile industry is liner continuous challenges due to the increasing fuel prices, uncertain sparing conditions prevailing in the international arena, rising commodity prices and the growing need to reduce CO2 emissions in edict to protect the environment. Thus, Ford has been allocating huge amount of revenues to the Research and Development (R&D) department in piece to develop best-in-class vehicles that will provide superior quality, efficient fuel preservation, safety, value for money and attractive bearing which best satisfies the consumer preferences. Furthermore, the company has been doubling its investment in innovating advanced technologies in order to maintain a high degree of competitive edge over its global competitors (Ford Motor Company). Although the automobile industry is facing fierce competition due to the presence of large number of competitors, Ford can utilize its daub recognition and strong financial resources to expand its global presence and development the volume of sales. Sudden shifts in demand take away also been identified, from hybrid cars to small cars due to the non-availability of parking spaces and traffic congestions. Thus, the sudden increase in demands disrupted the process of production as the company had to make major changes in order to shift its manufacturing concentration solely to small cars segment. Furthermore, the introduction of advanced technologies has emerged as a growing manner among the car manufacturing companies crossways the globe. Thus, Ford should emphasize more on its technology development department in order to introduce unique technologies integrated with modern vehicles parking assistance, car tracking device and GPRS among others (Ford Motor Company). Moreover, the company can invest its capital for expanding its production facilities in countries where Fords market share is considerably lower than that of other car companies even though the markets are promising. Hence, the establishment of manufacturing units will lower the logistics costs and enable the company to have greater profit margins. Furthermore, the company may allocate spare funds to the marketing segment in order to promote the uniqueness of its technologies. Notably, the recovery of the global economy from the financial downturn has provided consumers around the world with an increasing purchase power, which has been reflected through the increased demand across the globe. People are comfortable in spending money for luxurious products, especially those with integrated technologies which have not been introduced earlier (Humphrey and Memedovic). Benefits of