Companies with poor cost information make bad decisions about products that are not “average.— Poor information causes companies to overprice easy, high-volume “gravy” products and underprice difficult, low-volume “dog” products. Regardless of whether your company sells goods or services, learn how to double your profit by giving the dogs to your competitor and keep the gravy for yourself.
Learning Objectives
• Understand Real Costs
• Accurately Assign Costs
Major Topics
• Why traditional approaches are inadequate
• How superior cost information can double your profit
• Make Activity Based Costing spreadsheet easy
• Recognize joint and by-products
• Add throughput costing to your toolbox
• Depreciation
• Interest and the cost of capital
