Archive for March, 2011


Who Keeps Moving My Cheese?

I was once working for a company when the president read the short book “Who Moved My Cheese?”. The president enjoyed the book, then purchased a couple of cases of the book to pass out to his employees, including me.

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Unravel Customer From Product Relationships

I follow several discussion threads on Linked In. Recently, someone asked how to allocate the cost to acquire customers to products. While several responses had suggestions, I think there is a larger issue that is often missed.

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When Could Do Is Not Should Do

I was once called in to a capital goods manufacturer as part of a team to analyze their processes and to implement a new costing system. This company made products that sold for tens of thousands of dollars. When we arrived the company personnel were not quite ready for us to start. We were led […]

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Performance Incentives Gone Astray

Much has been and can be said about good performance measures and performance incentives. Sometimes, we need to look at a performance measure or incentive and see if we encouraging behavior that is not what we want.

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The Problem With Absorption Costing

In a recent forum, a member posted the following question: “Absorption Costing may not be the best approach for product costing. For example, why isn’t a cost of capital or return on assets incorporated into costing rates?”

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Don’t Wait for a Crisis to Manage Costs

I would like to take issue with a couple of common sayings: “Don’t rock the boat” and “If it ain’t broke, don’t fix it”. The common understanding of these are that when things are going well, let them continue. While there is a time and a place for not intervening and letting the process run, […]

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