Category: Activity-Based Cost Management
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17 August 2013 - 22:52, by , in Activity-Based Cost Management, No comments
As a controller in the 1980’s, my Plant Manager often called me a “creative accountant”.  That’s because I had a knack for getting the monthly actual cost to match the budget most every month.  Without breaking any laws or regulations, I simply learned how to use accrual accounts and inventory reserves to keep the corporate...
17 August 2013 - 22:51, by , in Activity-Based Cost Management, No comments
There is a test that doctors used in years past to determine if a mental patient was ready for release from the asylum. If your organization has had a headcount reduction in recent years, you may need to take the same test. The test goes as follows: The patient is brought into a small room...
17 August 2013 - 22:50, by , in Activity-Based Cost Management, No comments
One of the traits of a successful football team is its ability to change the game plan at halftime. NFL football teams are given 12 minutes between halves to analyze the 1st half results, devise an improved strategy for the 2nd half and communicate the revised plan to the team. For example, here’s a breakdown...
17 August 2013 - 22:49, by , in Activity-Based Cost Management, No comments
How long would it take to build a house if you were given unlimited resources? If you have ever attended a Stephen Covey “7 Habits of Highly Effective People” workshop, you know that the answer is a mere 2 hours and 45 minutes. While it will take you longer than 3 hours to successfully build...
16 August 2013 - 23:04, by , in Activity-Based Cost Management, No comments
“If I had six days to chop down a tree, I would spend five days sharpening my ax.” President Lincoln’s advice is sound for any manager considering a cost cutting iniative. With the economy softening, it is prudent for managers to prepare a contingency cost reduction plan. Cutting cost, however, with a “dull ax” makes...
I have been called many names during my life. I was called “Beancounter” at Johnson & Johnson because of my pursuit of accounting preciseness. Later in my career, a Motorola VP of Manufacturing nicknamed me “Herbie”, one of the characters in the popular book THE GOAL. The VP was accusing me and the cost system as...
16 August 2013 - 23:01, by , in Activity-Based Cost Management, No comments
Are you getting married? Married to an ABM consultant, coach, trainer or software vendor. If so, don’t tie the knot based solely on their sales pitch or advertisement. Barry Cameron, my pastor, recommends five pre-marital common sense tests before the marriage contract is consummated: Drive with your fiancee in heavy traffic.How do they react? Cool...
16 August 2013 - 23:00, by , in Activity-Based Cost Management, No comments
Why should I improve my cost system? “Why did it take eight consultants to help the old man across the street? Answer: Because he did not want to go across the street.” You cannot successfully force a new cost system on your organization. Your management and employees must “want and need” improved cost information. You...
16 August 2013 - 23:00, by , in Activity-Based Cost Management, No comments
Too many ABM Pilot Projects are like the old TV series The Love Boat. Everyone is excited with anticipation before the Pilot Project launch. During the 90-day Pilot “cruise”, everyone seems to have a valuable and enjoyable experience. But, after the Pilot Project Final Report, people return to their same old attitudes, practices and pre-ABM...
16 August 2013 - 22:59, by , in Activity-Based Cost Management, No comments
“I don’t have enough time!”…
Have you ever said this to yourself? This statement is an example of a self-defeating belief. Self-defeating beliefs such as “I’m not good enough” or “I’ll never lose weight” get in the way of your success and happiness. Negative thoughts lead to negative actions. For example, telling yourself, “I don’t have...

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