2-2-4 Costing

We support venture business manufacturers at early stage to implement costing. Our target companies are not such companies that install several ten thousand yen costing system but such companies that try to perform costing using excel spread sheets and access databases.

We select costing theory, define cost centers, apply cost allocation criteria and method   and internal controls of costing taking account of actual client’s production lines, needs of managements and future growth of the client.

At early stage venture business, an accountant or a few accountants are assigned for cost accounting. Also, calculation processes of the cost accounting are not visible. Therefore, the cost accounting system become black box. This situation is not preferable for Internal Control and will leads to future issue of IPO financial audit and additional cost  for the audit in near future.

Costing plays important roles not only for daily management accounting and financial accounting but also for a calculation of the arms’ length price pertaining to transfer price taxation system or royalties on client’s subsidiaries or third parties accrued from research and development activities.