Functional Performance A multinational company is one that has several branches in different countries around the globe. Examples of such companies are Toyota, Sony, and General Motors. However, this paper analyses the performance of Japan’s Toyota Motor Corporation. Firm’s Background The Toyota Motor Corporation (Toyota) was founded by Toyoda Kiichiro of Japan in 1937. It is a multinational corporation with its headquarters located in Japan, and the larges automaker by sales. In Japan, Toyota is also the largest manufacture with a current market share of 50% (Rowley, 2007). In the global market, however, the motor corporation holds a third position in the market share. The market share of Toyota in Japan is as shown in the table 1a in appendix 1. The logo and contacts for Toyota Motor Corporation are as shown in figure 1 below. Figure 1: Label for Toyota Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan Phone: (0565) 28-2121 Introduction to International Accounting System International accounting is a broad topic that generally focuses on issues relating to multinational companies. In addition to that, the topic also deals with the study of various functional areas of accounting in a global perspective. International accounting tries to provide solutions to the issues facing multicultural companies when engaging in foreign direct investment and international trade. The world economic situation is quickly changing momentum and more exporting and importing companies being incorporated into the system. This trend appears to move in the direction of normalising international trade as much smaller firms are now participating in the trade as well. Within the last 20 years, there has been substantial growth in the foreign direct investments which is attributed to globalization effects that encouraged countries to liberalize investment laws. With such investment capabilities, countries and multinational countries have to employ better ways of ensuring profit maximization and value is attained. Therefore, special accounting systems that can help in achieving such goals have to be developed and applied in their models. Type of Accounting System Used by Toyota Toyota Motor Corporation utilizes the Just-in-time (JIT) model of accounting system in running its businesses worldwide. “In this approach, companies attempt to modify the process of manufacturing so that the non-value-added activities are completely removed fro the process” (“Just-in-Time, n.d”). By doing this, companies are in a position to determine weather the cost involved is high or low. Therefore, this provides a company with the benefit of monitoring itself. The JIT evolves as a result of the need to meet demand just in time rather than having inventory at hand just in case. “The characteristics of this system include: Minimization of defects in goods; minimization of raw material; simplification of the process of production; and the creation of timely multi-skilled workforce” (“Just-in-Time, n.d”). Impact of the Accounting System Other than having a number of positive implications, the JIT also has some negative implications on a business. Below are the advantages and disadvantages of using the JIT accounting system in a multinationa