Why Use ABC ? By Gary Cokins

In this insightful artcile – Gary Cokins explains in detail using figures and diagrams how many Finance functions and CFOs violate cost accounting’s universal causality principle – resorting to the outdated “peanut butter approach” of spreading overheads over current output by a broad brush volume-based methods – when they should be using ABC to understand the true economic impact of activities (and their performance) – on a diverse range of products / services / customers – to better understand the profitability of their offerings – and start their profitability improvement journey.

Read On !!

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