Posts Tagged ‘product profitability’

Beware Unit Cost Traps

Recently in an online cost management forum, someone contributed a story to show the danger of a particular costing methodology. However, his conclusion was misdirected. The story went something like this: There was an old baker who became ill and had to go to the hospital. His son came home from the university to keep […]


Activity-Based Cost: Three Reasons To Avoid It

Activity-Based Cost or ABC has proven itself to be superior over traditional costing methods. Most traditional methods evolved during the early industrial age when life, while more complex than an agrarian culture, was simple. The introduction of computers and modern data processing triggered the rise of ABC giving people the power to manage data driven […]

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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, […]