Category Archives: Making Money with Lean Acct

A Better Way to Understand Product Profitability

Many companies calculate product profitability by subtracting a Standard Cost from the Price and calling it a Margin. But this calculated margin does NOT tell you how much money you are making. It tells you almost nothing about the profit … Continue reading

Posted in Decision-Making, Lean Accounting, Lean Manufacturing, Making Money with Lean Acct, Management Accounting, Performance Measures, Product Costs | Tagged , , , , , , , , , | Leave a comment