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Robert Kaplan » Visit Original Source

If you have only one product and sell to only one or two large customers, you don't need much of a cost system to learn where you are making and losing money. But companies typically have hundreds of different products or product variations and hundreds or thousands of customers. In this situation, traditional cost systems will not accurately trace a company's expense base to each … [ Read more ]

Source: Harvard Business School (HBS) Working Knowledge | Subjects: Accounting, Finance