Cost Driver Analysis [new] -

Silas shifted in his seat. Giacomo did love using the big machine.

After the summit, Silas walked back to his creaky roastery. He watched Giacomo fire up the massive drum for a single 10-pound test batch. He saw two packers stop work for fifteen minutes to switch from kraft paper bags to valve bags.

A murmur went through the crowd. Silas stiffened. "Impossible. We buy from the same brokers. We pay the same city gas tax."

Across the river, Elena, the CEO of Aurora Beans, faced the same market. But while Silas saw a blur, Elena saw a series of levers. She practiced cost driver analysis .

He sent a short note to Elena: "You didn't teach me about costs. You taught me about leverage."

She replied: "Cost driver analysis is just asking, 'What is the work behind the expense?' Control the work, control the cost."