Published by:
Harvard Business Publishing
Length: 12 pages
Abstract
This is an enhanced edition of the HBR article 88503, originally published in September/October 1988. HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb and share the management insights with others. Managers in companies selling multiple products are making strategic decisions about pricing and product mix with distorted cost information, detecting the problem only after their competitiveness and profitability have deteriorated. An alternative is activity-based costing. Virtually all of a company''s activities exist to support the production and delivery of today''s goods and services. Companies need not scrap their official cost systems to use activity- based methods. The two can exist simultaneously.
About
Abstract
This is an enhanced edition of the HBR article 88503, originally published in September/October 1988. HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb and share the management insights with others. Managers in companies selling multiple products are making strategic decisions about pricing and product mix with distorted cost information, detecting the problem only after their competitiveness and profitability have deteriorated. An alternative is activity-based costing. Virtually all of a company''s activities exist to support the production and delivery of today''s goods and services. Companies need not scrap their official cost systems to use activity- based methods. The two can exist simultaneously.