Comments on: Allocated Expense is bad! http://businesstoolsblog.com/2008/06/allocated-expense/ Sat, 13 Mar 2010 13:06:16 +0000 http://wordpress.org/?v=2.5 By: website design http://businesstoolsblog.com/2008/06/allocated-expense/#comment-315 website design Wed, 09 Jul 2008 12:05:37 +0000 http://businesstoolsblog.com/?p=110#comment-315 Business wisdom Business wisdom

]]> By: Brent Fontana http://businesstoolsblog.com/2008/06/allocated-expense/#comment-250 Brent Fontana Thu, 26 Jun 2008 19:39:02 +0000 http://businesstoolsblog.com/?p=110#comment-250 Good gravy you sure started a fire-storm with this post Mrs. Mays... Good gravy you sure started a fire-storm with this post Mrs. Mays…

]]> By: » Cher Horowitz had More of a Clue“The Bear” on Business http://businesstoolsblog.com/2008/06/allocated-expense/#comment-249 » Cher Horowitz had More of a Clue“The Bear” on Business Thu, 26 Jun 2008 12:43:20 +0000 http://businesstoolsblog.com/?p=110#comment-249 [...] of telecom crowd.  Please read on.  Did you read “Allocated Cost is Bad?”  Isn’t Sandi Mays naive?  Cher Horowitz had more of a clue.  Sandi should know [...] […] of telecom crowd.  Please read on.  Did you read “Allocated Cost is Bad?”  Isn’t Sandi Mays naive?  Cher Horowitz had more of a clue.  Sandi should know […]

]]> By: mark b. http://businesstoolsblog.com/2008/06/allocated-expense/#comment-247 mark b. Thu, 26 Jun 2008 03:55:40 +0000 http://businesstoolsblog.com/?p=110#comment-247 While I agree with a lot of your comments, many are remain unsubstantiated. For instance, "...we gain more in efficiency than we lose in cost." How exactly do you measure efficiency? Cost is relatively easy to measure more precisely and accurately than efficiency. In the long run - key notion - duplicate services will result in less return on invested capital. It isn't that the sharing of resources is inherently evil; it's more that the drivers for allocating the items that should be shared are incorrect. Why would one use revenue to allocate SD costs for colo? Pick a decent driver and business units interests will align. Regardless, interesting post. - Mark While I agree with a lot of your comments, many are remain unsubstantiated. For instance, “…we gain more in efficiency than we lose in cost.” How exactly do you measure efficiency? Cost is relatively easy to measure more precisely and accurately than efficiency. In the long run - key notion - duplicate services will result in less return on invested capital.
It isn’t that the sharing of resources is inherently evil; it’s more that the drivers for allocating the items that should be shared are incorrect. Why would one use revenue to allocate SD costs for colo? Pick a decent driver and business units interests will align.

Regardless, interesting post.

- Mark

]]> By: » Ready for best-ever Bearonbusiness Post?“The Bear” on Business http://businesstoolsblog.com/2008/06/allocated-expense/#comment-236 » Ready for best-ever Bearonbusiness Post?“The Bear” on Business Tue, 24 Jun 2008 07:16:33 +0000 http://businesstoolsblog.com/?p=110#comment-236 [...] title of the post is bland: Allocated Cost is Bad.  But don’t be fooled…if your business is telecom and your company is big and complex, [...] […] title of the post is bland: Allocated Cost is Bad.  But don’t be fooled…if your business is telecom and your company is big and complex, […]

]]> By: Sarah http://businesstoolsblog.com/2008/06/allocated-expense/#comment-233 Sarah Sat, 21 Jun 2008 02:44:38 +0000 http://businesstoolsblog.com/?p=110#comment-233 Any expense can be tough when it hits the balance sheet - in running my business I look at all purchases in terms of what I can expect for a return. I recently purchased an expensive piece of copywriting software called glyphius - I marked it down as an expense but was also able to increase my bottom line by more than what I paid. If you can increase your profits your expenses do not hurt as bad. Any expense can be tough when it hits the balance sheet - in running my business I look at all purchases in terms of what I can expect for a return. I recently purchased an expensive piece of copywriting software called glyphius - I marked it down as an expense but was also able to increase my bottom line by more than what I paid. If you can increase your profits your expenses do not hurt as bad.

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