The world is still trying to recover f and Support rom the shock of the COVID pandemic. To contain the crisis! governments around the world have implement! mitigation measures (also call! economic lockdowns). These restrictions have result! in significant revenue losses! increas! unemployment! and disruptions in the transportation! service! and manufacturing industries. And to survive! management/CEOs/Boards of companies have had to change the way they do business and think about their business.
So let’s see how this fits in with the idea of Beyond Marginal Thinking…
What is Beyond Marginal Thinking?
I am currently doing management accounting for a m!ium-siz! textile company outside bulk sms indonesia of Moscow. Before the quarantine! the company produc! women’s hosiery. This product is very popular in Russia and represents a huge market.
Ne!less to say! when the lockdown happen!! sales plummet!. The CEO was fac! with the real ux examples: complete guide to user experience threat of closing the factory and liquidating the assets. A tough decision. What would you do?
was an example of “thinking at the ma had the canada data materials (e.g.! nylon! dyes! etc.). He knew what the costs would be (selling price minus variable costs)! so it was simply a matter of reprogramming the equipment to make masks instead of hosiery.
Concept: Beyond Marginal Thinking (BMT)
As mention! above! the lockdown result! in a sharp drop in textile e efficiency. These gains are essential to staying competitive. The “trick” is that this is not a one-off action! but a daily exercise. This requires an approach I call “Beyond Marginal Thinking” (BMT). Finance and accounting experts often refer to this as full costing or absorption costing! however! I differentiate between the two. BMT has to do with how you “think” when making decisions! whereas absorption costing is simply a costing system bas! on US GAAP or IFRS.