The Iceberg of Your Business: Where the Biggest Financial Risks Really Hide
Are you managing incurred costs or committed costs? A CFO explains why 80% of expenses are locked in at the design phase. Lessons from Ford, Boeing, and Dell on TCO.
IRR vs. NPV: Why a Popular Investment Evaluation Method Can Mislead You
NPV vs. IRR: Is your favorite investment metric lying to you? A CFO explains why Internal Rate of Return (IRR) is flawed and why Net Present Value (NPV) remains the only reliable criterion.
Costing Traps (Part 1)
Stop using accounting cost for business decisions. Learn how to identify Relevant Costs, ignore Sunk Costs, and avoid the "Death Spiral" in pricing and make-or-buy scenarios.
When Accounting Deceives: How Absorption Costing Distorts Profit
Why did profit go up while sales stayed flat? A detailed case study comparing Absorption Costing vs. Variable Costing. Learn how inventory build-up creates "phantom profit".
Weighted Average Cost Is a Fiction
Using Weighted Average Cost for decision-making is a dangerous trap. A real-world case study showing how mechanical accounting destroys profit and how to fix it.