The conventional cost and performance accounting shows serious weaknesses and errors, which have significant negative consequences for companies - up to and including avoidable insolvencies.
The outdated methods of traditional cost and performance accounting cannot provide the foundation for an effective corporate controlling system capable of delivering the legally mandated early warning and monitoring systems for corporate resilience, precise cost calculations, and the competitive analyses essential in today's globalized business landscape.
Important factors such as the competitive gap, the central role of capacity utilization as a cost driver, and the ever-narrowing profit margins are ignored in the old methods.
The refusal to even engage with the topic and implement modern, practical methods not only endangers progress but also the entire company's success. Companies that cling to outdated concepts expose themselves to an avoidable high risk – often with severe consequences.
A radical upheaval, especially ahead of the competition, is imperative to meet the demands of the present and ensure the company's survival. Ignorance in this area is not an option!