What is it about?
This article I authored observes that customers are the source of financial wealth creation for shareholders and owners. However, management accounting systems are flawed and misleading with non-causal cost allocations, and they are incomplete. What is needed is a profit and loss statement reported for EACH customer
Why is it important?
A profit and loss statement for EACH customer is important to reform the compensation commission and bonuses for the sales force to align with the shareholders and owners. It is no longer about growing market share and increasing sales but about increasing PROFITABLE sales.
The following have contributed to this page: Mr Gary Cokins