Review and Deploy a Standard Cost System

In our experience, we have noticed that companies do not always give enough attention to product costing systems and only use average cost systems to meet legislation requirements and calculate sales prices, budgets, etc. These companies run the risk of not having a defined approach required to analyze the issues with this method, which could significantly affect the (initial and revised) budgeting process and undermine appropriate results assessment, as well as significantly change margins due to mismanagement of industrial cost and sales price formation process performance.

Our consultancy methodology, alongside our experience and cost implementation method, can be summarized by the following diagram; the internal structure review (from the internal information system up to factory floor data collection) allows us to assess the financial and cost accounting information system, the management accounting process and the budgeting process, bringing aboard important tools that support strategic management analysis, such as price formation, marketing decisions, compliance, etc.

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