Thought post a response here instead to the the PMs asking what the
heck is and does ROI have to do with this thread...
ROI, Return On Investment, is used in corporations to gauge how much
bang for their buck is going or projected to be. If one product has
a much shorter ROI, they many approve that program over one that is
much longer....or....approve the longer one if the return is larger.
This is blaring to me when you look at domestic vs foreign decisions
based on ROI, or perceived ROI as presented to them. Why Detroit has
and continues to get their lunch eaten by foreign OEMs...
Since most large companies don't have hand ledgers any more, but
computer based data bases (DB), they just run a program to spit out
the spread sheet they want. Many times 2 + 2 = 5 or whatever they
wish it to be.
The numbers in those reports are supposed to tell the actual costing
over time of the product(s). Technically, these reports are supposed
to roll in all costs associated and assigned to that product(s).
BUT, there are 'accrual' numbers baked into all and can be left in or
even manipulated to whatever result they wish.
'Accrual' as in how they account for their money and/or expenses
and/or credits...etc.
Like when they acquire another company and then write off all of the
expenses involved with that acquisition (layoffs, sell assets, extend
warranties, etc, etc). Those expenses can be rolled into the whole
corporate bottom line (all do that) and/or assign it to a division
that received that acquistion into their P&L structure. That division
can then assign or not those costs to one or more product team(s).
BUT...the best financial report in a very large corporation is the
ROI numbers for any given product(s).
-Ben Picture of my rig
1996 GMC SLT Suburban 3/4 ton K3500/7.4L/4:1/+150Kmiles orig owner...
1980 Chevy Silverado C10/long bed/"BUILT" 5.7L/3:73/1 ton helper springs/+329Kmiles, bought it from dad...
1998 Mazda B2500 (1/2 ton) pickup, 2nd owner...
Praise Dyno Brake equiped and all have "nose bleed" braking!
Previous trucks/offroaders: 40's Jeep restored in mid 60's / 69 DuneBuggy (approx +1K lb: VW pan/200hpCorvair: eng, cam, dual carb'w velocity stacks'n 18" runners, 4spd transaxle) made myself from ground up / 1970 Toyota FJ40 / 1973 K5 Blazer (2dr Tahoe, 1 ton axles front/rear, +255K miles when sold it)...
Sold the boat (looking for another): Trophy with twin 150's...
51 cylinders in household, what's yours?...
