Let's move on to amoeba business accounting, you really understand (1) and talk about it below:
The second item of amoeba management is "the cost thinking of amoeba management --- amoeba management that pursues added value". Based on Kazuo Inamori's lecture notes, we can make a comparison and collation to see how the manufacturing departments of large companies in general differ from those in which we work. Just look at this table "Unit Time Accounting Table" to know that the content is very different, the first point is the management method, other enterprises use standard cost calculation, while amoeba management focuses on improving output value and added value. While other companies aim to achieve standard costs, amoeba management maximizes added value by maximizing sales and minimizing expenses.
In terms of the protagonists, other companies are the "material" of products, but Amoeba is a collective of people who exert their wisdom. In terms of focus, amoeba management is an added value for the cost of each product by process. In addition, in terms of profit center, other companies are marketing, and the enterprises under the amoeba business model are manufacturing. In this way, as a manufacturer, you can reduce costs in a timely manner as the market becomes more and more important. In addition, while other companies use the standard cost method for inventory valuation at the end of the financial settlement, Amoeba Management uses its own selling price reduction cost method, which allows you to accurately grasp the management status at the final financial settlement.
Summing up the thinking method and uniqueness of the amoeba business model, it is reflected that the amoeba management believes that there is no market value if the product is not perfect. The thinking of cost calculation and amoeba management are basically mutually reinforcing, and the value of a perfect product can only be recognized by receiving an equivalent reward from customers. The management accounting system allows all employees of Amoeba to understand the status of management in real time and to focus on the indicators necessary to take immediate and proactive measures. In addition, the part of the monthly account is calculated as the current month's expenses, which means that the principle of "buy as you go" and the principle of one-to-one correspondence are implemented. In addition, Kazuo Inamori also pointed out that managers do need to understand philosophy, but it is also important to know management accounting.
The third is "to let the amoeba shoulder the responsibility of accounting within the controllable range, and the relationship between accounting and accounting per unit of time". The key point is that the business status should always be real-time, and the daily expenditure processing should be "correct, clear and fast", and it should be grasped and understood at the macro level. All of the amoeba's revenues and expenses are managed by themselves, and the funds are moved in such a way that the departments that should bear the costs can afford them, and the amoeba management maintains consistency between the respective reports of management accounting and financial accounting.
The fourth is "the unit time accounting system that realizes the full participation of all employees in the operation with unit time accounting--- as a management accounting report". The main point here is that amoeba management is the embodiment of Kazuo Inamori's management philosophy, and unit time accounting is a principle of accounting that is rooted in the management philosophy as a management accounting report. Kazuo Inamori believes that the monthly accounts play a role in combining the unit time accounting with the company's final accounts, the unit time accounting is completed by the business management department, and the monthly final account report is completed by the financial department. The flow of goods and money should correspond to the bills one by one, and it is important for all employees to participate in amoeba management, monthly plans, and basic plans, and to share goals and turn them into actions to achieve them, especially that goals and plans express the awareness of the managers.