Cost Management and Control Will Enhance Your Ability to
ACCOMPLISH YOUR MISSION 
Whether Your Mission is:
  Governmental
  Business or
  Personal

Most large organizations have multiple pools of cost to allocate to multiple cost objects. There are three methods of allocation

Step down allocation is an alternative to direct, simple allocation. It adds some, but not all, overhead to overhead allocations and is use

Reciprocal allocation attempts to consider all possible consumption and allocates each overhead cost pool to all other pools, cost objects,

Cost accounting is sometimes hard to define because it means different things to different people. So let’s differentiate and define two br

Level of effort analysis is one method to determine a driver for the basis of allocation.

Survival in nature requires cost effectiveness. There is no free lunch for anything living.

Complex organizations commonly have core functions and centralized overhead support functions tasked to aid all core functions.

Benchmarking is not a cost management paradigm. Imagine looking at the fruit in the illustration and determining which is best.

Few people outside of the federal government know that a manager can be sent to jail for poor budget management!

This blog summarizes some original research done in the 1990s that is probably still relevant to federal cost accounting use today.

Cost per unit can be a dangerous metric as averaging can have undesirable insidious consequences when units are non-homogeneous.

This blog walks through three alternatives for allocating central facilities cost to four departments.

Allocation intimidates many students but it is really as simple as splitting the dinner check.

Managerial costing can be thought as of a transformation of raw accounting data to a focused, managerially useful view.

This blog is a continuation of the story started in the Fraudulent Managerial Costing blog.

Costing that confuses, hides, distorts, or implies many digits of accuracy is fraudulent from the perspective of management information.

Organization based control extends that accountability of the org chart to cost management and continuous improvement.

The After Action Review (AAR) is a learning opportunity that is at the heart of effective cost management and control.

The logical extension of the demand curve as cost falls to zero is that demand becomes infinite!

A penny saved is more than a penny earned since earnings are subject to income taxes.