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article response2 - Garrett Ozar Article Responses The...

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Garrett Ozar September 19 2007 Article Responses The first article is “No Accounting for Design?” by Bill Breen. To summarize, Breen addresses the problem that the design of products, or designs on products are extremely hard to prove to be productive or cost efficient. There is also a problem with accounting. “Design investments are immediately written off as expenses. Months (or years) later, when a product finally hits shelves, companies are loath to retrieve the data necessary to calculate returns.” Chuck Jones, Design Chief of Whirlpool, found a way to account for the profit increases of design and creativity additions by using a metrics based measuring system. I have taken both financial and managerial accounting in college, and the topic of design improvements being unaccounted for in the accounting process has not come up once. I had never really thought of the whole concept until reading the article. It is very interesting that it is so difficult to account for the additions to a product to see if the costs of the additional designs make the product more or less profitable. I would suggest doing
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article response2 - Garrett Ozar Article Responses The...

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