We Need Better Tools --Dickeson

Should we now change our economic model? What do we change to and how do we accomplish the change? These are questions framed by Eliyahu Goldratt in his TOC—"Theory of Constraints"—first presented in his classic novel "The Goal" in 1986.

Our job cost statistical system is a policy constraint on our industry, imposed and supported by management. This is what Peter Drucker suggests in "Management Challenges for the 21st Century." It is urged by Goldratt. It's what we learn from Activity-based Costing as opposed to Job Cost Accounting. It is inconsistent with Contribution Analysis. Job cost accounting is outmoded, thinkers and writers in the field of management accounting are saying today.