The a B C of Cost Engineering

Cover The a B C of Cost Engineering
The a B C of Cost Engineering
Robert S Robert Scudder Denham
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" Such a statement has about as much foundation as the claim that the rules of multiplication would not apply to 2x4x15 exactly as well as to 9x9x9 because the factors were different. A cost system that de- pends upon the judgment, the pres- ence, or the health of a single indi- vidual, is unsafe. Another says: "My product must be sold at prices which are already established by my competitors, so the cost sys- tem would be useless to me. " This is sheer shortsightedness. In very few industries ...are prices estab- lished. There can be no established price in industries whose product is 63 THE A-B-C OF COST ENGINEERING made to the specifications of the customer. Unprofitable prices are always subject to change. The proof offered by a practical cost system provides the best possible argument in advancing prices, as well as a means of convincing competitors that changes are necessary. A third says : "My old method of cost accounting is satisfactory because it always shows a profit at the end of the year.

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