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Changing the Rules of Cost Analysis

Saturday, March 12, 2011

I am a regular reader of, and contributor to, LinkedIn groups focused on the finance profession. Two recent LinkedIn discussions have provided excellent evidence that we need to examine how we analyze cost information.

The first discussion, in the Institute of Management Accountants group, asked a very provocative question: "Were accoutants responsible for the recent economic crisis?" Having worked for a media relations group in college, I immediately smelled a discussion starter! The exchanges are very lively, and focused on the role of accountants in reporting facts to management vs. examining the reasoning behind the numbers. The second discussion, in the Cost Accounting for Process Manufacturers group, asked whether standard costing was obsolete in today's manufacturing environment. Again, the animated discussion raised many good points... Read More

Dallon Christensen – Computerworld.com