E-Commerce Age needs revenue accounting, oriented toward serving information needs of managers and investors in planning and controlling a firm's sales activities and their financial consequences. We wish to show the revenue accounting proposed in Glover and Ijiri (2002) extended to Markov processes and dynamic programming to gain insight into their processes. In this paper, Markov process was used as a way of capturing the customer transitions and related impact of the corporate profit. We incorporate the possibility of the firm having alternative policies under which transition probabilities and payoffs may be altered, along with an algorithm for an optimal selection of the policies that maximize the long-term profit of the firm.

This essay aims to investigate the relationships between budgetary control systems and enterprise size in Japanese firms focusing on the data collected in 2001. We mailed our questionnaires to 512 Japanese and 254 Korean firms from October to November 2001. Japanese firms investigated were 512 manufacturing firms that were listed in the 'List of Personnel of Firms (Kaisha-shokuin-roku; Diamond-sha)'. 111 companies (21.5%) relied. The questionnaire consisted of five categories, Corporate strategy and organizational structure, Budgetary planning, Budgetary control, Incentive system, Overseas subsidiary management. This essay primarily discusses the budgetary planning, budgetary control and incentive systems. We classified the 111 samples based on the sales volume into 2 groups, the consolidated sales volume 200 billion yen or more and under the consolidated sales volume 200 billion yen. And then, we discuss the differences observed in budgetary systems of these two groups.

Bond rating analysis evaluate corporate bond selecting many different items through a large variety of views. However, specific items and methods for evaluation are unrevealed. If the details of evaluation become clear, companies planning to issue bonds can rate bond of its own company beforehand, so it would be very important information for fund procurement. This paper tries to speculate the factors, which may affect greatly to bond rating by confining to the information on financial statements. And if the factor(s) are controllable for a company, it is possible to obtain and maintain a high rating, which is extremely important for them. Also, approaches to conduct this factor analysis are seemed to be different between Japanese and American bond rating organizations. Thus, this paper identifies the differences between them.

The method evaluating capital project includes payback period methods, accounting rate of return method, net present value method, internal rate of return method, and profitability index method, etc. The discounted cash flow methods such as net present value and internal rate of return are excellent in theory. In practice, the discounted cash flow methods are used in a lot of U.S. companies, while the payback period method, which is not so good in theory, is used in most of Japanese companies. Why do Japanese companies prefer the payback period method?

In this paper, as a part of the researches that study the reasons, first, the characteristics of simple payback period method will be shown in detail. Next, the discounted payback period method advocated by Alfred Rappaport will be reconsidered. Finally, I insist that the premium payback period method means a kind of discounted cash flow method based on the concept of the time value of money in theory.

The purpose of this paper is to consider the feature of the profit creating mechanism of franchise business and the state of a management control systems on the topic of a CVS chain. The feature of franchise business is sharing the management function for the common purpose, though franchiser and franchisee are independent business proprietors. This paper explains the value chain of headquarters and a member's store using a simulation model first. Next, the success factor of Seven-Eleven is specified. And finally, the state of a management system for a franchise organization to grow is discussed.