ARTICLES AND RESOURCES FOR PEOPLE PASSIONATE ABOUT COST ENGINEERING.
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
12 July, 2023Depreciation – 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
12 July, 2023The 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,
12 July, 2023Expenses 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
12 July, 2023Don’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
12 July, 2023Do 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
17 April, 2023Don’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
15 July, 2022Manufacturing 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
15 July, 2022Manufacturers 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
18 April, 2022Why 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
21 March, 2022Chip 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
04 February, 2022How 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.
17 January, 2022Talent, 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.
17 January, 20225 CFO trends to watch in 2022
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
17 January, 2022Making cost engineering count
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
17 January, 2022Manufacturing Cost Modeling for Product Design
The process of product design is driven toward achieving design specifications while meeting cost targets.
24 July, 2020Cost Modeling: A Foundation Purchasing Skill
The process of product design is driven toward achieving design specifications while meeting cost targets.
24 July, 2020Rethinking Activity-Based Costing
Activity-based accounting looks great in the classroom, but too often fails in the field.
24 July, 2020Time-Driven Activity-Based Costing
In the classroom, activity-based costing looks like a great way to manage a company’s limited resources.
24 July, 2020A closer look at German cost accounting methods
A survey of the cost management systems used by companies in Germany, Switzerland, and Austria.
15 July, 2020German Cost Management or GPK
Good governance comes from strong processes and properly trained professionals inside an organization. (Paul Sharman)
15 July, 2020Difference 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.
12 June, 2020Marginal 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.
03 October, 2019
