Cost, Profıtabılıty & Fınancıal Control
Cost, Profıtabılıty & Fınancıal Control
Most companies calculate costs. But very few make decisions based on cost.
The first thing examined:
Is the cost correct?
Or is it merely an accounting entry?
In most cases:
The actual cost differs from the known cost
Some products operate at a loss without being noticed
More important than accurately calculating realized costs is the ability to correctly forecast and pre-calculate future operating and product costs. Pricing is done not for past periods, but for future ones.
We move cost from being a report to being at the center of the decision-making mechanism.