5-9.  Significance of Managed-Gross-Profit Chart in Business Management  
When we discuss the today’s management accounting, both standard costing under absorption costing and direct costing are said to be representative costing. Merits and demerits for the two costing are explained in accounting textbooks. The resulting merit of standard costing will be in front-spots’ superiority to cost (or profit) control, and the merit of direct costing will be in headquarters’ profit planning or profit control. The fundamental reason will be that there is no charting method applicable to income statement in standard costing in the world, but there is a profit chart in direct costing.  
When variable cost ratio and fixed cost are constant, the profit under standard costing is influenced by the two variables such as "sales and production quantity" or "sales and inventories". From this reason it is said that standard costing does not fit in business managers’ senses. This is just because there has been no profit chart added the influence of inventories.  
By means of a managed-gross-profit chart, it is better understandable in senses that the profit should not be determined only by sales but by small or large amounts of inventories besides sales. The managed-gross-profit chart is by nature most available in making a profit master plan.  
There exists direct standard costing as a way of covering the shortcomings of standard costing. However the break-even point obtained in that chart is not so much meaningful. This problem will be discussed by me on another paper.  
References
(1)  Yuichiro Hayashi: Method of charting expression for company’s  profit, Japanese Laid Open Patent No. H9-305677, 1997.  
(2)  Yuichiro Hayashi: AN ACCOUNTING SYSTEM FOR ABSORPTION COSTING, Patent Japanese application laid-open disclosure number; HY200201-137922, 2002.  

(3)   Yuichiro Hayashi, An Accounting System for Absorption Costing, USP Serial No.10/335,823, Patent Pending.  
(4)   Ibid (3), EPA No. 03 002 028.3, Patent Pending.