Abstract
Five typical response styles of industrial corporations to external situation are identified in terms of budgeting of human and material costs: the standard, sales-oriented, hyper-sales-oriented, profit-oriented, and super-profit-oriented styles, the standard style being defined as maximizing profit by making the expenses equal to those for the maximum pre-tax-profit. The other styles are characterized by simulation based on comparisons of their actual expenses with those of the standard style. for each style, model calculations can be used to estimate the dependence of unit selling price for the maximum pretax upon the difference be-tween the expenses and those of the standard style. The standard style are demonstrated to correspond to the highest managerial efficiency, and that it is identical to the budgeting style in R&D-led management as reported previously.
