A profit control in the public-service corporation is different from that in other industries in some respects.

1) Stabilizing the service-load directly contributes to reducing the cost, increasing the profit, and decreasing the service price.

2) Inflexible regulated service price (User’s Cost of Service) and high exit barrier of the service users because of the expensive initial equipment cost.

3) Conflict between service price and social service cost.

In this paper we analyze the profit control in a power company by taking advantage of distributed peak load hours between the company and a gas company. We propose that a power company should subsidize the gas-air-conditioner to stabilize the air-conditioned load for commercial buildings whose regulated rate is cheaper than its marginal service cost.

This paper introduces a non-cooperative game theoretic approach to model and design the subsidy system. We found that a power company could achieve larger potential profit if they subsidize the gas-air-conditioned equipment.

The purpose of this paper is to examine the validity of four methods of measuring transactions of Leveraged lease as the financing lease, from the standpoint of the lessor, described in FASB No.13, assuming that the loan is nonrecourse-debt to the lessor. Leveraged lease transaction involves at least three parties: lessors, a lessee and a long-term creditor.

“The ordinary financing lease method” makes no distinction between a leveraged lease and an ordinary two-party financing lease. This method doesn’t recognize that contracts of Leveraged lease transaction and nonrecourse-debt connectedly are valid at the same time. Therefore this method is rejected.

“The three-party financing lease method” does reflect the three-party nature of the transaction in that the lessor’s investment is recorded net of the nonrecourse debt. Because this method closely follows the cash flow of the transaction, this method shows a gradually declining investment balance throughout the years of the lease, with income recognized at a level rate of return on the declining balance. Accordingly, this method is apprropriate method for measuring for leveraged leases.

“The investment with separate phases method” includes deferred taxes in the determination of the lessor’s unrecovered investment. There is uncertainty involved in the deferred tax, thereby changing the lessor’s net investment and the pattern of imcome recognition contemplated by the investment with this method. Therefore this method is rejected.

“The integral investment method” looks upon the earnings from the use of temporarily held funds as constituting an integral part of the lease income. Because this method involves estimation of the secondary earnings and recognition of a substantial portion of them in advance of their occurrence, this method is rejected.

Traditional break-even analysis for the purpose of short-term profit planning has been extended to many types of variations, such as multiproduct CVP analysis, non-linear CVP analysis, CVP analysis under uncertainty. These models, however, remain to static since the concept of the passage of time is not introduced in the observed accounting period. Then the dynamic break-even analysis (prototype) on the assumption that revenue and expense functions were linear was proposed, but this model was not practical.

This article extends the traditional static model to the dynamic model of break-even analysis by introducing the concept of time passage as a discrete variable, and proposes the new methods of analyzing the structures of revenues and expenses which are dated variables. And another purpose of this paper is proposed the method to illustrate this dynamic model in 3-dimensional space which consist of time variable, sales variable, and expense-revenue variable.

And a time period in this dynamic model is one year, so time variable of this model is treated as discrete variable in terms of week, month, and quarter or etc. as unit period of time.

In this dynamic model, a revenue function at the end of each unit period of time is linear, and an expense function is a piecewise linear function. This model expands revenue and expense straight lines in the traditional model to piecewise surfaces of revenue and expense which kink at the end of unit period of time in this dynamic model. And a traditional break-even point is developed as a break-even line which is the line of intersection of the revenue surface and the expense surface.

In short-term profit planning, for example budgeting, this model is practical, because this model is analyzed as time goes by.

The competition is intensifying by international scale, and it becomes very important for companies to produce and supply good products cheaply. So cost reduction is always demanded.

Therefore, the cases are increasing of constructing new type of relationship between companies. It is because swiftness and reliable cost reduction can be realized by making use of management resources of another company.

So, in this paper, it will be described that is the reality of strategic cost management in Japanese manufacturing industries of the present ages, and is the behavior styles that are taken by companies, industry and government over the combination between companies. From them, it is shown as the characteristics of decision making by strategic level for cost reduction in Japanese manufacturing industries.

The way of approaching here is as following; picking up the relationships between independent companies such as merger, acquisition and tie-up, and through them, cost reduction done by specified industry as a whole is drawn. And purposes of them such as cost reduction, research and development, market correspondence are patterned. Those trends are the following mutual relationship.

(1) In the case of relationship between companies for cost reduction, the target of cost reduction is settled by the position on the industry’s Industrial Life Cycle (ILC) or Product Life Cycle (PLC).

(2) Terms and purposes of related constructions between companies in one industry have a fixed tendency by a position of the industry’s ILC or PLC.

(3) Cost reduction through relationship with the industry group, company group and cost reduction strategy by lessons of government are shown in Japan. And cases taken in this paper are based on the articles about relationships between current Japanese companies of the newspaper (The Nihon Keizai Shinbun) in periods of 1996 to 1997.

Inefficiency of the supply chain appears when trade partners such as retailer, wholesaler and manufacturer intend to maximize their profit and execute their optimum order requirements.

This paper describes how trade partners’ behavior would create supply chain inefficiency by developing a model of the optimum order requirements where trade partners intend to maximize their profit, and analyzing the demand and supply balance between trade partners. Because the structure of the optimum order requirements differs by trade partners, the gaps between demand and supply appears to generate a supply chain inefficiency.

Four factors are identified which would inhibit supply chain optimization; (1) additivity of retail demand, (2) over expansion of demand in market growth period, (3) restraint of demand in market introduction period, and (4) inappropriate use of trade promotion would accelerate these negative impacts.

Six key success factors are identified which would improve supply chain optimization; (1) regional retail inventory management, (2) focus on selected retailers, (3) demand and echelon inventory information sharing, (4) Vendor Managed Inventory, (5)reinforcement of trade promotion in market introduction period and (6) restriction of trade promotion during matured market period.

Budgeting is comprehensive period planning, which integrates various planning such as; production, sales, finance, personnel, research and development. In enter-prise, sales quantity, sales price, and the purchase price of materials are estimated on monthly or quarterly basis. When a multi-period product-mix decision is handled, all sales quantities and production quantities in a period of time must be simultaneously decided and an inventory must be taken into consideration. However papers about product-mix, rarely deal with these problems.

Thus the purpose of this paper is to construct a model for proposing how to decide the optimal product-mix, which includes simultaneous budgeting of prodution quantities, sales quantities, ending inventory quantities, in all periods of time together with the fluctuation of purchase price, sales price, and production materials.

This paper deals with ending inventories under the assumption that these quantities are not equal to inventory quantities calculated at the beginning of a period. Costs of completed goods are determined by the FIFO method in this paper, so any lots which vary in production time are included in the same sales quantities. This condition cannot be grasped unless both sales and production quantities for all periods of time are determined.

Thus in this model all possible patterns are considered, and this is called “scenario” Each “scenario” searches for the biggest value and the biggest one among all of them is then used as the final goal in this model. As a result of using this model, production, sales and ending inventory quantities in all periods of time can be decided. In turn production, sales and ending inventory quantities will affect account receivable, payable and inventory assets and other accounts. If a matrix accounting system is introduced into the above model, balance sheets and income statements can be estimated.

The purpose of this paper is to review some basic problems in administrative organization and management accounting information systems in recent group companies.

Given the severe competition existing on a worldwide scale, we must surely admit that in Japan only few attempts at administrative sciences have so far been made.

However a close point when a world scale premising severe competition, before turning to a close examination of business organizational changes occuring recently throughout the world would show the preponderance of diversification of business, geo-grapical expansion or spreading out as well as integration. It is now in the ordinary course of matters for companies to quickly make inroads into or promptly retreat from new businesses or markets to keep their companies profitable.

Changes in business organization now involves not merely the restructuring of divisions and departments in a parent company, but also include mergers and acquisitions while establishing subsidiaries or associated companies. In addition, business combinations or alliances have been attempted or achieved by capital participation, joint investments, joint ventures, sales tie-ups, and technical tie-ups.

The development of the science of logistics or information technology expedited the progress in forming group companies. Because of this tendency, we are now in the era of so-called “integrated decentralization.” In other words, at the same time that the management organiztion of group companies has moved toward decentralization of powers and responsibilities, management information in full, on time and at need has been centralized in the main or parent company.

The essencial question is getting information from not only operating units but also the surrounding market in order to catch up with changing circumstances and to take the necessary steps in response.

I would like to focus attention here on the segmentation and sub-consolidation of group businesses, because they are key factors in group management accounting.