Change Your Business Model --Roger V. Dickeson

Hobbled by Legacies
"Traditional cost accounting measures what it costs to do something, for example, to cut a screw thread. Activity-based costing also measures the cost of 'not doing,' such as the cost of machine downtime, the cost of waiting for a needed part or tool, the cost of inventory waiting to be shipped and the cost of reworking or scrapping a defective part. The 'costs of not doing,' which traditional cost accounting cannot and does not record, often equal and sometimes even exceed the cost of doing. Activity-based costing therefore gives not only much better cost control, it gives 'result control,' " reported Peter Drucker in "Management Challenges for the 21st Century" (1999), page 111.