Relevance Lost

H. Thomas Johnson, Robert S. Kaplan

Why do the numbers managers use to run companies fail them, and how did cost accounting lose touch with real operations?

At a glance

You will see how simple labor based product costs hide cross subsidies and can push you to misprice and misjudge your mix
You will question the monthly profit report, which can signal rising profits while the firm's long run health is compromised
You will learn why measures such as worker output and machine uptime mislead once a plant moves to just in time production