Toyota: Cost Allocation of the Essay

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Accordingly, Hanson (2009) reports that "while Toyota does have an 'initial allocation for the United States', very strong demand from Japan may cause the company to 'review its sales plan and reallocate the production plan'." (Hanson, 1)

In this case, the sales plan denotes an unallocated cost that may demand a change in financing with the shift of focus to a new market.

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Another issue cited is the relative shortage in availability of specialized batteries required for the vehicle as Toyota works toward the construction of its own battery production facility. This project represents a convergence of allocated funds and nonallocated costs encountered during the process of construction and facility development.

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