Posts Tagged ‘Business profit’


Fixed and Variable Costs — The Dilemma

Back in my college days, the university required two courses in economics: Macro Economics and Micro Economics. It was hard to reconcile the two courses. What is hard fact in one was flakey in the other – and vice-versa. As a student it drove me crazy.

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Financial Reporting versus Costing: Which is Right?

When attempting to calculate the cost of products and services, people often cite practices used for external financial reporting. Then they attempt to use these practices for internal decision making. Perhaps in an ideal world, this may be a valid path. However, we live in a world far from this ideal. In our world, external […]

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Management Perspective

One of management’s jobs is to maintain a perspective for the business. Perspectives take several forms. One is a perspective into the competitive environment. Another is a view to customer needs and satisfaction. There are many others. In a sense, these perspectives are always a move to view the forest instead of focusing on the […]

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Integrating Management Initiatives: Which and How?

Frequently in financial forums, questions are posed about integrating various management tools. In a recent case the tools were ABC or Activity-Based Cost for cost management and its view of processes, activities, tasks, and resources. BSC or Balanced Scorecard for a balanced measurement view of performance measures. Strategy Management for implementing strategies, vision, and mission […]

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Ditch the Flipcharts

Next to Powerpoint slides, flipcharts seem to be in every business meeting. Sometimes, they are simply a presentation tool. But when the purpose of the meeting is to create and organize ideas, the flipcharts fall short. Storyboarding, a method borrowed from Walt Disney, can do much better. Let me share a couple of experiences to […]

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Grasping for Profit

Some years ago as a young cost accountant, I was sitting in a meeting when the Vice-President of Sales announced that we needed to establish a multi-million dollar reserve and exit one of our major product lines. Of course, this came as quite a shock.

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Cash Cows Need Respect Too

In a recent blog, a colleague wrote that individual product cost was not important in management decisions.

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They Said Breakeven Analysis was Simple – Not

Every so often when I was a controller, my boss would come back from a MBA class and ask for a Breakeven Analysis. Even as a consultant, clients would ask me how to do a Breakeven Analysis. Yes, in my college work, I had also listened to the same presentation. I also was thrilled with […]

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Driving by Looking in the Rearview Mirror

Over the years, while listening to various experts in different business management methodologies, I’ve often heard this driving analogy. “You would not drive a car by looking in the rearview mirror”. In fact, I’ve probably used this analogy myself.

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