The original presentation paper which was presented at the 2017 annual meeting as a special presentation on August 28, 2017 was revised for this paper. The original title was “Contract Price, Cost and Profit.” The main purpose of this paper is to present the needs for revising the present directives (kunrei in Japanese) for the purpose of establish a new one for establishing performance-based procurement standards. In order to attain the aim of this paper, first, the author discloses the transition of research methodology and its’ field.

According to changes in the economic environment, management accounting has been extended to be useful for practical use. In such circumstances, it is necessary to reconsider the definition and framework of management accounting. First, we focus on the economic environment, the source of value creation, and the values as a change that must be expanded in management accounting. In addition, examples of expanded management accounting include BSC with strategic importance, intangible management as non-financial information, management with fixed budget, and stakeholder-oriented integrated reporting. Besides this, there are many management accounting systems expanded. For those extensions, I expect that four presenters discuss on Expansion of Management Accounting and Practical Issues. At the same time, I expect that it is an opportunity to examine the definition of management accounting and the framework of management accounting.

Both production and sales are the main functions for corporate activities. Historically, comparing the two areas, the development of management accounting is prominent in the production function. At the center of management accounting, there existed a technique to control the production process. The reason why the management accounting in sales function did not developed is that information on the sales process could not be obtained.

Due to changes in the environment in recent years, marketing management practice has undergone a major transformation. Previously, we used budgeting and profitability analysis to control inputs and outputs of marketing process. As a result, the marketing process was managed indirectly. The recent major change is that customer behaviors are being tracked directly. In this paper, we examines how marketing management accounting has changed by marketing automation, and what kind of problem newly occurred.

The influence of human factors for management and management accounting has been changing. The appropriate management of human factors is very important for corporate value creation including the economic value creation and the social/organizational value creation. That brings challenges for management accounting research and practice. Integrated Reporting is expected to play roles for the management of human factors in management accounting research and practice. In this paper, focusing on integrated reporting, we investigate the change of the management of human factors for corporate value creation and the challenges of management accounting research/practice based on the basis of an economy in which the economic value creation and the social/organizational value creation are connected in corporate value creation.

This paper discusses the problems of capital budgeting practices in association with extension of Management accounting. In terms of that, the aim of this paper is addressing the important points of current issues on capital budgeting practices.

This paper discusses many issues including change of capital budgeting methods, customized net present value method, ex-post follow-up process, qualitative risk evaluation, building pullout criteria, evaluation about IT investment, focusing on revenue estimation.

In addition, this paper refer to some limitations and perspective related to researches in this field and provides general related problems to be considered.

This paper clarified an ideal management practice for Japanese companies from case study research on Omron Corporation which is a company contributing to society through the actual behavior of its management leaders and employees. Companies that practice shareowner-centered models have succeeded through practicing “high price or fair price” and “restructuring and reinvestment.” However, typical stakeholder-oriented Japanese companies have not been able to implement them. Nonetheless, Omron has succeeded through setting and practicing the philosophy “creation of social needs.” The reasons are management practices of Omron from the era of the founder to the present president. These practices include philosophy, mechanism, human resources growth and action. And these elements of practices are linking together forming virtuous cycles of success.