Tag Archives: Product Costing

Standard Costing Debunked – Part 3: Labor Costs

Throughout most of this year,  I’ve been leading up to this – as I’ve written about the issues facing CFO’s in Lean companies.  About why standard costing just doesn’t work for companies that are Lean.  And why Lean Accounting offers … Continue reading

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ABSORPTION COSTING IS THE ENEMY OF LEAN. CHRYSLER AND GM PROVED IT IN 2008.

“Using absorption costing to monitor efficiency can lead companies to make poor production decisions,” says Ranjani Krishnan, professor of accounting at Michigan State. “A company that does this could seem to be growing less efficient when demand decreases. If a … Continue reading

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It’s About Spending, Not Costs – Part 1

During my days as a working CFO, my #1 job was financial review and analysis. I had to explain my company’s financial results to all those reading our financial statements.  Like all CFO’s, I had to understand the company’s costs, … Continue reading

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