Accounting Quote by Eliyahu Goldratt
“Almost all decisions based on cost accounting are utterly wrong.”
About This Quote
Source Book: The Goal, 1984
It argues that relying solely on cost accounting for decisions often leads to flawed outcomes because it ignores broader system dynamics.
In simple terms: Cost accounting alone can mislead decisions.
Key Takeaway
Consider whole-system impacts beyond cost.
Themes
decision-making
cost accounting
systems thinking
Mood
analytical
critical
Type
philosophical
practical
When to use this quote
- manufacturing planning
- budgeting
- strategic investment
Key Concepts
lean management
theory of constraints
Questions to Reflect On
- What other factors should influence decisions?
- How can you integrate system-wide data?
A Different Perspective
Cost accounting may miss hidden inefficiencies.
