“You must understand the impact of the known unknowns and the unknown unknowns onyour gross profit. Unless you capture all costs in your gross profit measure, you will not be in a position to reduce these costs” Measuring your gross profit is not just about measuring the known costs relating to the supply of goods or services. This can be very misleading unless you also measure the unplanned costs of sales as well. By “unplanned” costs, I mean those costs that you have not included in your costing models. Most businesses will be aware of the “known unknowns”. Examples [...]