Category Archives: Uncategorized

We are used to the idea of indices showing an upward trend, but in calculating we need to be also able to deal with the situation when costs/values fall. An example would be house prices currently. http://www.independent.co.uk/news/business/news/uk-house-price-growth-lowest-level-four-years-data-halifax-economy-a7723686.html

Comprehensive discussion of Target Costing.

When making a decision about a long term investment we need to apply a discount rate to reflect the changing value of money over time. This principle applies also in the context of awarding sums of compensation as in this … Continue reading →

We tend to look at the BS in the context of measuring performance against a company’s objectives, but it can be used for a Department or even an individual (as here). An interesting comment in the comments space below too, … Continue reading →

Discussion of using Pareto Analysis to help a company develop. It uses the usal 80:20 ‘rule’ as if it an actual rule rather than a common occurrence. But it is still interesting on how the process can be used. http://www.accountingweb.com/practice/clients/how-to-steer-clients-toward-profitable-growth

Target costing is all about keeping costs at a particular level so that profit margins can be maintained at a particular selling price. This can be done through efficiency, redesign, automation, reduction in quality or sometimes reduction in quantity. Usually … Continue reading →

The author of this letter points out a common misconception about costs. The average cost of providing a service is not the same as the additional cost of providing one more. Written about the context of education costs in an … Continue reading →

The principles of Life Cycle Costing can be applied to projects too as a way of ensuring that the costs over the whole project can be considered. as here with a comparison of investments in sewerage etc. http://finance.yahoo.com/news/sustainable-solutions-corporation-releases-comparative-130000086.html