Reading No 1

Why pay?

Why? Is the question that should normally start an activity, since the effort we are
making ad portholes should be supported with a result that justifies it. This reasoning
should be the measure that allows us to prioritize our time and efforts. For the cost,
I received many answers about why do it: some very general as "decision-making";
other very simple as "to know" and other fulfill only as "because it is important to do
so". However, the reason to pay is very simple: coasted to see if there is room or
not. The core idea of pay is whether we win or lose the business or activity we do
and the simplicity of this phrase lies its greatest virtue, it accessible and applicable.
Accessible, because born in a logic that we all recognize is that the business must
be profitable (if not, it will not be viable in time) and applicable because as a sales
level, when calculating the cost of it immediately, I know if I generated margin or not.

An interesting situation that arises is that the subject with information found ( product
costing ) often believe that the response to its analysis determines its decision
against the market , which is wrong. While coasted to see if there is room , this will
not force you to sell. The same occurs with the opposite result . If we lost with the
possible sale of a product, we are not necessarily obliged not to sell to no harm .
Let's look at the first situation : we are evaluating the possible inclusion of a new
product to our line and make the respective calculations (price that the market
recognizes that product less the cost internally we calculated to produce it ) we note
that there is room . The reaction that normally appears we decided to include it in
the portfolio of our products andto sell !, but given the situation we decide not to.
It would be crazy? No, because there may be reasons to support it . One would be
speculative : Perhaps if I sell today earn less; if I sell it in a few months ( with real
estate , for example) ; another might be that although I have margin , the product
presents risks to future market ( could be the case of a new drug ); or it could also
stop selling since the same investment I can launch another product and earn more.
Questions

1. What is the purpose of costing in companies?

2. If it were paid, do you think that companies would always win?

3. How much cost can influence the success of the organization?