Last week I posted a column on cost accounting. But I didn’t say it was about cost accounting, and nearly eight hundred people read it. Let’s try a (ahem) “scientific” experiment, starting with this announcement: This column is about cost accounting too. I’ll share the readership numbers with you next week!
Among the first things we teach students of business operations are the cherished principles of incremental cost (cost resulting from an action taken, minus costs that would have resulted had the action not been taken), opportunity cost (cost relative to the next best alternative), and sunk cost (past, irrecoverable, and hence irrelevant costs).