1996 Volume 4 Issue 1 Pages 37-58
Recently some corporate managers and research specialists are beginning to suspect that traditional cost management methods, which are based on standard cost accounting, mislead management with regard to decision-making and management control. They suggest many kinds of new cost management methods as countermeasures. This paper analyzes one of them, KIHON-GENKA.
This unique cost management system was developed by the top management of S Corporation to support a high-share, high-profitability strategy, from the stand-point of the relationship between the business environment and the cost management methodology.
Following a summary of the history of the company, the aim and position of this paper are presented in Sections 1 and 2. Sections 3 and 4 clarify the mechanism by which KIHON-GENKA works, and analyze how it has contributed to the growth and profitability of the company. Sections 5 and 6 discuss the influence of business environment changes on KIHON-GENKA systems.
