Financial

Willie Sutton Rule

Willie Sutton Rule

A rule in management accounting stating that activity-based costing (in which activities are prioritized by necessity and budgeted accordingly) should be applied where the highest costs occur because that is where the biggest savings can be found. That is, one attempts to find savings in the most expensive activities. The rule derives its name from bank robber Willie Sutton, who reportedly said he stole from banks "because that's where the money is."
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References in periodicals archive
Above all else, however, the move to community-based teaching is happening because of the Willie Sutton rule of medical education: We teach medical students in the community because that is where the patients are.
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