Fixed Revenue Accounting

This book is the first in the management accounting framework literature to provide readers with insights on how to manage revenue and profit models by developing relationships with customers. The Principal Editor, Professor Kenichi Suzuki, is the founding father of Fixed Revenue Accounting (FRA) and his inputs offer invaluable insights on how businesses can increase revenue and adopt preventative measures to deal with the fluctuations in the economy.

FRA is a new management accounting tool that evaluates and manages the impacts of fixed customers on a company's financial health. 'Fixed customers' refer to frequent or regular customers who are expected to repeat their purchases. Their repeated purchases produce stability of revenue which in turn creates a stable profit environment and certainty. The profitability and stability generated by fixed customers can be utilized for strategic management, planning, and decision making to encourage investment for future growth.

This book provides a deep understanding of the usefulness of the new management accounting tool, and covers both the introduction of the concept of FRA and accompanying case studies in the contexts of Japanese manufacturing and service companies adopting the FRA model by examining profitability, stability, and growth analysis.

Contents: Japan Society of Organization and Accounting (JSOA)Japanese Management and International Studies (JMIS)PrefaceAbout the EditorsList of ContributorsProfitability Analysis:Profitability of Fixed Customers: A Case of a Japanese Department Store (Kenichi Suzuki, Misa Kikyo, Maiko Kodama, Hitomi Toyosaki, Yu Hiasa and Kohsuke Matsuoka)Redesign and Management of Marketing Strategies Using FRA Profitability Analysis: A Case of a Mail-Order Company under Turnaround Process (Shuhei Kawata, John Hatzinikolakis, Takeshi Saito and Kaori Yamawaki)Identifying the Determinant Factors Satisfying Each Customer Segment: Case of a Japanese Hotel Chain (Kayo Mitani and John Hatzinikolakis)Stability Analysis:Measuring and Managing Customer Profit Stability: A Japanese Hotel Chain Case Study (Ayuko Komura and Kenichi Suzuki)Growth Analysis:Variance Analysis in Fixed Revenue Accounting (Kohsuke Matsuoka)Bathtub Model Variance Analysis at a Japanese Hotel Chain (Kohsuke Matsuoka)Promoting and Hindering Factors in the Introduction of Fixed Revenue Accounting: A Case Study in a B2B Company Based on Management Accounting Change (Masahiro Hosoda, Yoshitaka Myochin and Daisuke Tomita)Related Topics in Management Accounting:Goal Congruence between Top Management and Divisional Managers (Kazuyoshi Morimoto)Budgeting and Vertical/Horizontal Interaction in New Product Development — A Case Study in Car Navigation System Development (Masanobu Nakamura)Empirical Study of Mechanism of Budgetary Control and Hoshin Kanri to Stimulate Autonomous Behavior Based on Theory of Ba (Hitomi Toyosaki, Misa Kikyo, Yuki Iwabuchi, Maiko Kodama, Yu Hiasa and Ayuko Komura)Index
Readership: Students and researchers who are keen to have a deeper understanding of fixed revenue accounting.