7
Total Cost
In order to appreciate all of the cost savings and revenue enhancements cited in Chapter 6, it would be highly advantageous to be able to quantify all costs. If costs were tracked on a total cost basis, then the cost-saving potential of well-designed products could be known and products could be assigned appropriate overhead charges and thus competitive prices. However, if total cost is not tracked, then well-designed products may be assigned the same overhead as loser products, which is an unfair burden and may ultimately compromise the well-designed product’s success.
Most companies have such inadequate cost systems that it actually hinders good product development and distorts product development decisions. Merely reporting ...
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