Change Your Business Model --Roger V. Dickeson

Our printing industry is still hobbled by our legacy of that General Motors cost accounting system. We call it Job Cost Accounting—JCA. We focus on jobs in our commercial printing plants. But our job costing doesn't tell us the "cost of not doing," as Drucker puts it. Nor does it tell us the cost of servicing customers. What we do is allocate all of the "not doing" and servicing costs into rates. We multiply those rates by labor hours we identify with jobs. We call them "chargeable hours." Every job, every account is loaded with a bundle of the "not doing" and servicing costs.