Japanese Management Accounting Today (Japanese Management and International Studies) (Japanese Management and Internati Studies)

Contents......Page 14
Preface......Page 10
Part 1 STRATEGY AND BUSINESS RESTRUCTURING TO ENHANCE BUSINESS VALUE......Page 18
1 Introduction......Page 20
2 Corporate Law for M&A......Page 21
3.1 Concepts and identification of acquisition and uniting of interests......Page 22
3.1.1 Valuation of goodwill......Page 25
3.2 Formation of a joint venture company......Page 26
3.3 Transaction under common governance......Page 27
4 Japanese Corporate Tax Law Facilitating M&A......Page 28
4.1 Incompetent taxation system......Page 29
4.2.2 Merger as a joint venture......Page 30
4.3.1.1 Handling of the merged company X......Page 31
4.3.1.2 Handling of merging company Y......Page 32
4.3.1.3 Handling of company X stockholders......Page 33
4.3.2 Numerical example of the competent taxation system......Page 34
4.3.2.2 Handling for merging company Y......Page 35
5 Conclusion......Page 36
References......Page 38
2 The Concept of Capital in Relation to Economic Profit......Page 40
3 The Impact of Lease Accounting upon Capital in Japan......Page 41
4 The Procedure for Research & Development Expenditures in Japan......Page 43
5.1 Influence of goodwill on the capital in M&A......Page 44
5.2 Goodwill and minority equity in consolidated financial statements......Page 46
6 Three Types of Equity and Economic Capital in Japan......Page 47
References......Page 50
2.1 Basic management objectives and business creed......Page 52
2.2 Traditional patterns of strategic behaviors......Page 53
2.3 Philosophy of organizational design......Page 54
3.2 Period 2: 1944–1949......Page 55
4.1 Period 4: 1961–1976......Page 56
4.2 Period 5: 1977–1985......Page 57
4.4 Period 7: 1993–1999......Page 58
5.1 From the progress 2000 plan to the value creation 21......Page 59
5.2 Business and organizational restructuring......Page 60
5.4 New group management system......Page 61
5.5 From value creation to leap ahead......Page 63
Appendix: Corporate Profile of Matsushita......Page 64
References......Page 65
1 Introduction......Page 66
2 Situations before and after the Merger of Companies Involved in the Combination of Capital Relationships......Page 67
3 Mathematical Programming Model of the Merger......Page 68
4.1.1 Case 1-1: s > p, b > c, and a < b < a + c......Page 69
4.1.2 Case 1-2: s > p, b > c, and b > a + c......Page 70
4.3 Case 3: s < p......Page 72
5 Conclusion: A Practical Consideration......Page 73
References......Page 75
Part 2 MANAGEMENT CONTROL SYSTEMS AND BUDGETING......Page 76
1 Introduction: Issues......Page 78
2 The US Reward System: Position and Changes in Management Control......Page 79
3.1 Shift to a performance-based system......Page 81
3.2 The role of reward systems in management control in Japanese companies......Page 83
4 Discussions with Examples......Page 86
5 Consideration and Conclusions......Page 87
References......Page 89
1 Introduction......Page 92
2.1 Criticism of the traditional budgetary control system by BBRT......Page 93
2.2 Propositions by the beyond budgeting model......Page 94
3.1 Difference in organizational structure and operational principles......Page 95
3.2 Flexible deployment of resources vs. cumulative reserve of resources......Page 96
3.4 Difference in the nature of budget as caused by the difference in the formulation process of business strategies......Page 97
3.5 Strategic hierarchy vs. improvising network......Page 98
3.6 Concepts behind methodologies of adaptation to environment......Page 99
4 Compatibility between a Budgetary Control System and an Organization Model......Page 100
5 Budgetary Control Practice in Japanese Corporations and Beyond Budgeting......Page 101
5.2 Adoption of rolling budget......Page 102
6 Summary and Conclusion......Page 104
References......Page 105
2 Influence of the Financial Centralization Method......Page 106
3.1 Overview of the questionnaire survey......Page 108
3.2 Overview of the MNEs who responded to the questionnaire......Page 109
4.1 Utilization of GCMS......Page 110
4.3 Relationship between the performance indicator for managers in overseas subsidiaries and the use of GCMS......Page 112
4.4 Relationship between the GCMS and the awareness of cash management and foreign exchange management......Page 113
5 Conclusion......Page 115
References......Page 116
Part 3 COST MANAGEMENT......Page 118
1 Introduction......Page 120
2.1 The meaning of opportunity cost and decision-making......Page 121
2.2 Classification of opportunity costs......Page 122
2.3 Opportunity cost in accounting......Page 123
3.2 Heuristic analytical method of financial costs......Page 124
4.1 Hidden non-financial cost and cause variables of value......Page 127
4.2 The present state and future prospects of cost management centered on “hidden costs”......Page 130
5 Conclusion......Page 131
References......Page 132
1 Introduction......Page 134
2.1 Formula and six key principles......Page 135
2.2 Target costing process......Page 136
2.3 A serious cost reduction effect at the design stage......Page 137
3 IT for Efficient Target Costing......Page 138
3.1.2 Auto cost estimation from component formation......Page 139
3.2 System architecture for realizing the functions......Page 140
3.3 System architecture for global optimal manufacturing......Page 141
4.2 Information capital readiness and capacity surplus with IT......Page 142
6 Conclusion......Page 143
References......Page 144
1 Introduction......Page 146
2 Framework for Evaluation of Improvement Value......Page 147
2.1 Evaluation of improvements to variable cost items......Page 148
2.2 Evaluation of improvements to fixed cost items......Page 149
2.3 Consideration of the timing of improvement implementation......Page 151
2.3.1 Calculation of actual variable cost ratio giving consideration to the time of the improvement......Page 152
2.3.2 Calculations based on engineering methods......Page 153
3 Evaluation when Targets are Set......Page 154
4.1 Sample calculation for Sumitomo Electric Industries......Page 157
4.2 Sample calculation for NEC Saitama......Page 158
4.3 Sample calculation for Kyocera......Page 160
References......Page 162
Part 4 MANAGEMENT ACCOUNTING FOR SUPPLY CHAIN AND SHARED SERVICES......Page 164
1 Introduction......Page 166
2 SCM and the Indicators of TOC......Page 167
3 Concrete Measures that Improve TOC Main Indicators, and BSC......Page 170
4 Useful TP Management for Goals/Measures Deployment in SCM......Page 171
5 Examination of an Example Applying TP Management to SCM......Page 173
6 Concluding Remarks......Page 175
References......Page 176
1 Introduction......Page 178
2.2 Necessary conditions of provisional prices along the supply chain......Page 180
3 Game Theory and Provisional Price along the Supply Chain......Page 181
3.2 Core theory......Page 182
3.3 “Principle of goal congruence” and “principle of fairness”......Page 183
3.4 General Shapley value......Page 184
4.1 Numerical figure model......Page 186
4.2 Two-stage games......Page 187
5 Conclusion......Page 191
References......Page 192
1 Introduction......Page 194
2.1 Risks facing emerging goods supply chains......Page 195
2.2 The effects of real options on competitive performance......Page 196
2.3 Applying the financial option theory to real options......Page 198
2.4 Integrated multi-stage investments in supply chains......Page 201
3.2 Transfer pricing in the supply chains fulfilling the demand of matured goods......Page 203
4 Conclusion......Page 206
References......Page 207
1 Shared Services of Japanese Companies......Page 210
2.3 General effectiveness of shared services......Page 211
3.2 Seven types of shared service centers from the viewpoint of responsibility accounting......Page 213
4.2 Combination of the cost center and the profit center......Page 214
5.2 Discrepancy between independent and consolidated responsibility centers of the shared service subsidiary......Page 215
5.3.3 Solution 3......Page 216
6.3 Balanced scorecard......Page 217
References......Page 218
1 Introduction......Page 220
2.1 Structure of franchise system......Page 221
2.2.2 Commodity composition......Page 222
3.1 Standard for calculating the royalties......Page 223
3.2 Gross profit on sales enlargement plan......Page 224
4.1.1 Utilization of information systems......Page 225
4.1.2 Reform of logistics......Page 226
4.2.1 Reduction in ratio of cost to sales of bento and pre-cooked meals......Page 227
4.2.2 Reduction in cost of goods sold by developing original items......Page 228
5 Conclusion......Page 230
Materials......Page 232
Part 5 PROCESS MANAGEMENT......Page 234
1 Introduction......Page 236
3 Circumstances of the Introduction of MBO into Japanese Corporations......Page 237
4 Defining Study Purposes and Setting Hypotheses......Page 238
5.1 Distribution of answers regarding MBO’s chain effects among objectives......Page 241
5.2 Variables affecting chain effects among objectives and satisfaction of target workers......Page 242
5.3.1 Top management’s concern and involvement in MBO and controlling sections......Page 243
5.3.2 Top management’s concern and involvement and purpose of introduction......Page 244
5.3.3 Purpose of MBO introduction and controlling sections......Page 245
6.1 Examining Hypothesis 1......Page 246
6.3 Examining Hypothesis 3......Page 247
6.4 Summary of results......Page 248
7 Conclusion......Page 249
References......Page 250
1 Introduction......Page 252
2.2 Features of the process......Page 253
3.1 Direct model of Dell Inc.......Page 254
3.3 Make-to-order......Page 255
3.4 Customer support......Page 256
4.1 Dell’s management of value chain......Page 258
4.2 Performance evaluation......Page 259
5 Business Process Strategy Outside Corporations......Page 261
5.1 Collaboration of Dell’s business process......Page 262
References......Page 264
1 Introduction: Significance of Business Process Reforms in the Automotive Industry......Page 266
3 Medium- to Long-Term Vision......Page 267
4 Development of Business Process Reforms......Page 270
5 Present Situation of Business Process Reforms......Page 271
6 Future Directions of Business Process Reforms......Page 272
7 Summary: Desirable Principles of Business Process Reforms......Page 273
References......Page 276
1 Introduction......Page 278
2 IT and Business Models......Page 279
3 Business Models and Management Accounting......Page 281
4 A Method to Evaluate the Effect of Investments in Various IT Tools in Each Department......Page 283
5 Evaluation of Business Model......Page 287
6 Conclusion and Summary......Page 289
References......Page 290
Index......Page 292
About the Volume Editors......Page 298