Looking at the Numbers -- Dickeson

When we add a new job we don't add operating expense even though we make believe we're adding job costs. We may be trapped by our assumptions. There are no job costs other than job-specific raw materials. There are only operating expenses of the business. This is why Drucker is telling us to abandon traditional cost accounting. It's why Eli Goldratt calls "Cost Accounting Public Enemy Number One of Productivity."