“Beware of little expenses; a small leak can sink a great ship”
Given the prevailing cutting throat competition nowadays, any business organization has to pay attention towards their cost of production. Computation of cost on scientific basis and thereafter cost control and cost reduction is of paramount importance.
Why do I need to build up a costing model for my business?
- To determine the cost of production per unit basis, for example, cost per kg, cost per meter, cost per liter, cost per ton etc.
- Cost models help in the determination of selling prices.
- Cost models help in cost control and cost reduction.
- Ascertainment of division wise, activity wise and unit wise profitability becomes possible through cost models.
- Cost models also help in locating wastages, inefficiencies and other loopholes in the production processes/services offered.
- Cost models help in presentation of relevant data to the management which helps in decision making.
- Cost models also help in estimation of costs for the future.
How can you help me? What makes you different?
“We do what is right, not what is easy”
This is our approach in budget preparation and development of control sheets:
- First thing, we discuss the products or services that your company offers;
- We then start by gathering the required data related to all of the cost line items;
- We analyze this data and make sure that it is valid and reliable;
- We start building the suitable costing model for your business;
- We then build different scenarios to highlight the effect of favorable and unfavorable changes in costing elements;
- At last, we provide in-house training as to how to use these costing models and how to keep them updated on a regular basis.
We can also provide monthly visits to make sure that things are still on the right track and/or the required corrective actions in case of deviating out from the planned path.