Tag: manufacturing

Absorption Cost Accounting

See Also: Semi Variable Costs Standard Costing System Variable vs Fixed Cost Absorption Cost Accounting Absorption cost accounting (also known as the “Cost-Plus” approach), is a method that is centered upon the allocation of Manufacturing Cost to the product. This method is important for situations when a company needs to decide if it can be

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The KISS Principle can be “Simply Stupid”

How often have you heard a business owner say “Why would anyone include depreciation, or rent, or insurance and many similar costs, in their Cost of Goods Sold? It’s best to keep it simple!” They want to apply the KISS Principle, but it can be simply stupid. The KISS Principle can be “Simply Stupid” Well

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Why Don’t I Have Cash?

I was involved in a meeting with a prospect a few weeks ago who we will call Don. Don owns a manufacturing company which is presently experiencing a growth rate of thirty percent annually. The question we are looking at today is why don’t I have cash? Why Don’t I Have Cash? He is showing a

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Employment in Services to Dominate US Job Growth

The US Department of Labor issued a report yesterday detailing expected changes in US job growth or employment over the next decade. Employment in Services to Dominate US Job Growth The US expects service related jobs to constitute virtually all (96%) jobs created through 2018. The health care industry employment constituting a significant portion. Whereas,

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The Next 100 Years: Forecasting the 21st Century

I just read a thought provoking book about forecasting the 21st century. It is titled, The Next 100 Years: A forecast of the 21st Century, by George Friedman. Friedman is the CEO of Stratfor a private intelligence and forecasting company located in Austin, Texas. Barron’s has labeled Stratfor the “Shadow CIA”. They have a web

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