1st Edition

Management Control Systems in Japan

By Takashi Shimizu Copyright 2017
    164 Pages 31 B/W Illustrations
    by Routledge

    174 Pages 31 B/W Illustrations
    by Routledge

     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, has been 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 insight for international investors and management accountants that can prove useful in business management.

    List of figures

    List of tables


    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



    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.