Conceptual Analysis of Value-Based Management and Accounting: With Reference to Japanese Practices

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Akira Nishimura


The aim of this paper is to outline and discuss the framework of contemporary management accounting known as ‘value-based management accounting’. At present, under the severe competition in the international markets, short-lived consumer sentiment and rapid change in technology, management should enhance not only the effective and efficient value of product but also enterprise value for competitive advantage. This value management should look so forward and be so proactive as to be not swung around risk and uncertainty, while management accounting should also serve the management as a supplier of useful information on risk and opportunity. Therefore, this paper focuses on profit opportunities and risks, or what lies behind profits and losses, and tries to build models which are suitable for applying variance analysis, and to do so with specific reference to Japanese management practice in order to clarify the characteristics of value-based management accounting (VBMA). At the same time,these analytical models are also based on the integration of quick feedback and reliable feed forward controls and support the visual and virtual management system. This paper begins by conceptually examining the relationship between value and a company, clarifies the structures and features of value-based management (VBM) and tries to establish a theoretical model of proactive variance analysis, which would go forward to the formation of a practically analytical model, although the model analysis and the transformation of risks into opportunities should be further supplemented by empirical study.
Keywords: value-based management accounting (VBMA); value-based leadership; quick feedback; reliable feed forward; value analytic models.

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How to Cite
NISHIMURA, Akira. Conceptual Analysis of Value-Based Management and Accounting: With Reference to Japanese Practices. Asia-Pacific Management Accounting Journal, [S.l.], v. 2, n. 1, p. 71-88, dec. 2007. ISSN 2550-1631. Available at: <>. Date accessed: 21 apr. 2019.
Management Accounting