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 for many reasons, such expenses should be included in COGS. Including:

So in many cases, the KISS principle – is “Simply Stupid” because it results in overpayment of the GMT, and obfuscates the real cost of a product or Service. And incidentally, it is GAAP. Just look at public company annual reports… Almost assuredly, your bank LOC requires financials prepared in accordance with GAAP.

Keep it Real.

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KISS Principle

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KISS Principle

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