It is unclear whether the Japanese Board of Audit's powers and responsibilities over submarines sold domestically to the Japanese Navy are the same as for large foreign sales (starting with Australia). Overarching political justification for arms sales includes Japan's:
Pete is reliant on the greater knowledge of Australian Department of Defence and Department of Finance financial analysts and accountants to understand the importance or significance of the following:
BACKGROUND ON JAPAN'S BOARD OF AUDIT
In Comments of mid February 2016 S indicates "In Japan, the predetermined price of procurement goods is calculated based on the law, i.e., “Instruction on calculation standards of predetermined price of procurement goods” and the Board of Audit strictly checks its adequacy on regular basis.
The Board of Audit's oversight may cover JMoD while JMoD is bidding alongside MHI and KHI in the future submarine contest. As reported in the Fairfax media in early February 2016 the Australian Government CEP assessors had asked for information from the Japanese bidders in “a different form” as there was a "government-to-government arrangement as opposed to a commercial arrangement".
INFORMATION PROVIDED BY "S"
(2) Direct labor cost (wages including overtime pay, allowance)
(3) Direct cost (design cost, inspection cost, specialized jig & tool cos, machinery & equipment cost, construction cost, experimental research cost, development cost, technical collaboration fee, royalty usage fee, various expense)
(4) Manufacturing overhead ( is indirect material cost  is indirect labor cost  is indirect cost)
(5) General administrative and selling expenses (all of the costs incurred in common with respect to management of the entire business and sale of goods  )
(6) Selling direct expenses
(7) Interest (cost of capital necessary for the accomplishment of manufacturing & selling of procurement goods and benefits of the contract)
(8) Profit (reward for the accomplishment of manufacturing & selling of procurement goods and benefits of the contract, and expense profit of compensation for the risk bearing)
(9) Packing cost
(10) Transportation cost
The Board of Audit has strong authority and can request correction against unjust or violation of related laws & regulations, and also request improvement from view point of laws & regulations, institution and administration."
S's RESPONSE TO THE QUESTIONS ABOVE
S's response was made in Comments of February 23, 2016.