What Can Activity Based Costing Do For You?
It can give you a whole new way to look at your business.
How could you use this information to improve your bottom line?
The end result of this approach in my experience is a policy requiring all office supply orders be approved by a manager. This can actually have a short-term positive result. For about a month the manager will diligently check each order and deny a few requests. However, more important things will creep into his or her schedule and those orders will start to pile up in their in-box. Eventually, the manager will rubber stamp them to get them out and the office supplies cost will go back to where they were. Worse, people will adjust to a slower ordering process by building up an even bigger inventory of paperclips.
So, how could we use a little imagination to make our income statement really begin to talk to us? A Better Approach
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