Management Control Systems in Japan

As the world's third-ranking economic power, Japan's style of management, such as the lifetime employment system, the seniority system, and an enterprise union, hasbeen well studied. However, little else is known about the Japanese management control systems (MCSs) and management accounting systems, which are significantly different from other economic powers. This book sheds light on Japanese MCSs and the differences with those of the United States, illustrated with examples from Mitsubishi Electric, Kao, and more. This book aids not only researchers in management accounting, but also provides more useful insightfor international investors and management accountants that can prove useful in business management.

List of figures List of tables Acknowledgments 1 Introduction: what are management control systems in Japanese companies? 2 Management control systems: definitions and development 3 Cost allocation systems: ABC versus Japanese cost accounting innovation 4 A challenge to better budgeting in Japanese companies 5 Management in decentralized Japanese companies 6 Balanced Scorecard versus the Japanese system 7 Performance measures: ROI, ROS, ROE, and EVA® 8 Management of advertising expenses in KAO 9 Transfer pricing in Mitsubishi Electric 10 Beyond budgeting or new budgeting? The case of Disco 11 Microprofit centers: amoeba system in Kyocera 12 The story of a comeback from bankruptcy: Japan Airlines Index

Takashi Shimizu is Professor at the Graduate School of Accountancy, Waseda University, and President of the Tokyo Chapter of Institute of Management Accountants. He was a member of the Japan Certified Public Accountant Examination Committee from 2006 to 2008.