Let’s talk about cost accounting. Whether you are a contractor, a consultant, or a manufacturer of widgets, costing is a valuable tool for planning, setting prices, and identifying areas that need improvement.
Sometimes the market dictates prices for a service or item. In that case, costing will let you know which product is the most profitable and which one you are subsidizing. Many people view subsidizing in a negative light, although it is not a bad concept – subsidizing a low priced washer may get you’re an order for a special, very profitable bolt that you wouldn’t have gotten otherwise.
