Most companies do not know where they really make money. Our Square Root Costing service quickly identifies true product and customer profitability, a critical foundation for business improvement.
Without a clear understanding of where you’re truly making money, you’re flying blind. You’re likely making decisions on a range of factors without understanding the profit impact. This includes pricing, promotions, product development, marketing, operations, portfolio optimization, and overall resource allocation. Yet most companies do not know where they make money. Standard costs do not tell the true story. In today’s complex businesses, massive cross-subsidizations mask the true cost and profit of products, customers, market segments, and activities.