Need for a new Cost System
March 15, 2012 Leave a comment
SYMPTOMS |
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Products that are very difficult to produce are reported to be very profitable even though they are not premium priced |
Profit margins cannot be explained |
The results of bids are difficult to explain |
The competition’s high volume products are priced at apparently unrealistically low levels. |
Vendor bids for parts are considerably lower than expected. |
Customers ignore price increases , even when there is no corresponding increase in cost |