ARTICLES AND RESOURCES FOR PEOPLE PASSIONATE ABOUT COST ENGINEERING.
10 Important Skills a Product Cost Engineer Should Have
The product cost engineer plays a crucial role in ensuring efficient product design, production processes and cost-effective operations within manufacturing settings. Here are ten
Survey Results: Where Is Cost Engineering Within The Org Chart ?
Cost engineering, a critical aspect of organizational efficiency, manifests itself differently across companies and industries. To delve deeper into this dynamic, SPCEA recently c
What’s The Best Way to Become a Cost Engineer?
Becoming a cost engineer typically requires a combination of education, skills development, and practical experience. There are multiple ways to become a cost engineer but here is
“You don’t know what you don’t know.”
Knowledge is power, but how would you know whether more or new knowledge is needed? What if you were convinced that the knowledge you had was, in fact, the best and only knowledge
The fallacy of Long-Term Agreements OR how not to buy a car.
For those lucky enough to have had careers in the automotive industry, Long-Term Agreements (LTAs) are as common as cars themselves. Most consider them a normal part of doing busin
Bad costing causes pain and suffering
There is a certain innocence in numbers. Just like music, they can create a harmony that soothesthe soul. Maybe that’s why some costing professionals don’t stress when performing t
Must Depreciation Expense Be a Fixed Cost?
“Those of you familiar with my writings already know my opinion of the accounting concept of depreciation (“the dumbest concept in the history of management accounting”). I’ve been
Depreciation – Fixating on the Irrelevant
“Sunk costs are irrelevant” is a principle stated in almost every book on decision science ever written. Despite this well-accepted principle of decision science, accountants conti
The Capital Preservation Allowance
In earlier blogs, I explained my views about depreciation; both its irrelevance in business decision-making and the way it is treated as a fixed annual cost. An organization does,
Expenses vs. Investments
It’s important to distinguish between measurements made from the financial accounting perspective and those made from the managerial accounting perspective. Periodicity is im
Don’t Ignore the Investment
During my four decades as a consultant, it has never ceased to amaze me how little attention manufacturing firms pay to the amount of time they use the equipment they’ve invested i
Do you have high influence on your company’s product cost?
Product costs, also known as cost of goods sold (COGS), are direct material, direct labor, and manufacturing overhead. COGS are typically the highest category of a manufacturing co
Don’t Give Up on a Great Idea Just Because It Seems Obvious
I spent eight years failing to act on an innovative idea that I knew would work. It was an idea that had not just technological promise but also societal value. It would help peopl
Manufacturing Job Creation Lacks a Common-Sense Approach
Economic incentives aren’t the answer; cultivating a vibrant local supplier base is. The typical intent of governmental economic development is to increase the number of man
Manufacturers can cut stress with these moves
Grant Thornton industry lens on: Global instability To keep business flowing, manufacturers need to manage a complex network of inputs and outputs. But it’s hard to know how to man
Why does the cost engineering field need a cost engineering certification?
Why have we created a cost engineering certification? Well, most industries have established and well-communicated standards for what it means to be an expert in the field. The ab
Chip Giants are Ramping Up Spending
Chip giants are ramping up spending by the billions as semiconductor demand booms Key Points: The world’s largest contract chipmaker, TSMC, has committed to investing $100 bi
How Cost Management Needs to ‘Save to Transform’
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
Talent, Performance, Growth: CFOs’ Top Priorities for 2022
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
5 CFO trends to watch in 2022
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
Making cost engineering count
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
Manufacturing Cost Modeling for Product Design
The process of product design is driven toward achieving design specifications while meeting cost targets.
German Cost Management or GPK
Good governance comes from strong processes and properly trained professionals inside an organization. (Paul Sharman)
Difference Between Absorption Costing and Marginal Costing
Inventory valuation is a major component in the calculation of the cost of goods sold and can be used as collateral for loans.
Marginal vs Absorption Costing
Understanding marginal and absorption costing should be relatively straightforward, as it’s covered, in one form or another, at all levels of the AAT qualification.
