Using Activity based costing (ABC) and other techniques, we perform a deep analysis of breaking expenses cost center-wise to facilitate the process of planning and controlling the budget of a business. This is linked with our Monthly Monitoring System through which the actual is compared with the Budget.
- How much is the client losing for not being able to use the entire capacity?
- How much is it losing due to rejections during the production process?
- How much of such rejections are beyond acceptable norms?
- Are there other areas of waste thrown up by the rigorous introspection caused by this exercise?
- What is the cost failing to ship on time in full to his second largest customer this month?
Know real cost of the product for Pricing, Profitability or strategic purposes
- Product costs
- Product cost model with cost drivers
- Cost management system
- Good estimate of Product/ Services cost, Deep look at expenses and its usefulness to take corrective actions
- Identification of Value Destroying items. Example:
- Items with Negative Gross Margins
- Expenses with no clear benefits on Profitability/ Cash flow