Where Does Costing Fall On Your Priority List?

Mar 30, 2015

I was reading an article the other day by someone with who I am acquainted. It was a really interesting article about the benefits of the IMA (Institute of Management Accountants). The author wrote about the important parts of a business, which in his words are: effective governance, risk management, and internal control.

While I do not disagree that these are important parts of a business, I was surprised he did not add “knowing your costs” as part of the list. I wonder if the list Steve provided was the result of his sales and marketing background, or if he does not perceive costing to be an important part of running a business. If it’s because he’s a sales and marketing guy, I’m sure many of you are cringing thinking about your own sales people. If it’s because he doesn’t believe costs to be a priority, then that concerns me!

Do you deem your costs a priority? I’ve heard some argue that costing may be dead. However, I do not agree. How can you run your business and make decisions without knowing your  true costs? Sure you can guess and you can sometimes even get it right, but you cannot truly know. There are many aspects to having a sound business, but in my opinion, without costing, being sound is impossible.

What do you see as the most important? Is costing important, why or why not?

Categories: Cost Accounting