I.What are the three major subsystems of yokohama's cost management system and how do they interrelate ?

The cost management system contained three major subsystems: cost reduction, cost accounting, and performance evaluation.

=> Cost reduction : how to reduce costs throughout the production process. ( a process given to reduce the different costs). -The corporate and division guidelines were used to prepare the division's cost reduction plans. -One of the primary objectives of these plans was to identify the cost reduction targets for each cost element for the next six months. -Goals included targets such as reducing the material content of a product by 2% per annum. The section was also responsible for finding ways to substitute cheaper materials for more expensive ones, such as by increasing the use of plastic as opposed to metallic components. ln addition, the section was responsiblê for changing subcontractors, production processes, and product designs.

=> Cost accounting system : generate product costs and inventory evaluation, as well as provide a mechanism ( schema ) for cost control on plant floor. -Inventory control planning was the responsibility of the production management section. Its goal was to improve the turnover and size of finished, raw material, and work-in-process inventories.

=> Performance evaluation : how well the cost reduction and cost control objectives were being achieved ( performance control panel ). -The profit plan was reviewed at the division level by top management, including the firm's directors, and was submitt~d to the president's office for approval. Once approved, the division's plans were announced to all departments and sections.

II. Describe Yokohama's budget planning system. (p3. p4)

III. Why does Yokohama' use working hours and not direct labor hours ?

Working hours, or kousuu as they