Cost to Make
Product Costing
Product cost data is a cornerstone to analyzing financial performance. Comprehensive and detailed cost answers provide the insights necessary to make decisions and thrive in all market conditions. From product design to manufacturing to customer profitability – and every step in between – product costing affects critical decisions that drive strategy and tactics.
Having a modern product costing process means that you have the rules, tools, and data in place to calculate, simulate, and predict the costs associated with each thing you make. Modern costing programs establish a framework to quickly and accurately answer the question – “What’s the cost of …?” – in order to make smarter, better-informed decisions.
ImpactECS enables costing programs with a robust platform to handle three areas: centralizing your unique business rules, integrating and connecting relevant data from existing systems, and calculating answers fast with our supercharged calculation engine. ImpactECS makes it possible for you to create a foundational set of cost data at each step of the value chain in order to get deeper insights into the root causes of costs and identify opportunities to increase profits.
ImpactECS connects your organization’s critical data to provide a powerful financial modeling platform centered on delivering value to your company’s bottom line.
Chief Financial Officers
ImpactECS gives company executives the ability to access operational financial performance company-wide or for specific business dimensions like division, product, geography, and customer.
Business Unit Leaders
Defining and enacting effective strategic plans and tactics to achieve your organization’s performance goals requires the tools and data necessary to identify root causes and variances, analyze scenarios, and predict how changes affect both costs and profits.
Cost Accountants, Finance Managers, and Analysts
Delivering the required level of detailed analysis demands an integrated, end-to-end platform to eliminate standalone spreadsheets, retire legacy systems, and spend more time analyzing accurate and meaningful results.
ImpactECS enables access to critical product cost answers across the manufacturing process
- Define your costing methods: Calculate detailed product costs using any costing methodology: Standard Cost, Actual Cost, Target Cost, Should Cost, Forward-Looking Cost, Simulated Cost, or any hybrid approach.
- Calculate and maintain multiple cost versions: Determine product costs for intermediate materials, work-in-process (WIP) items, finished goods, manufactured location, business division, or any other relevant dimension.
- Centralize relevant cost data: Manage product master data, raw material price versions, BOM versions, process routings, work center rate versions, production plans, and more in one system.
- Unlock cost impacts at scale: Integrate product volume and mix data with unit costs to understand product costs at scale and calculate average or blended costs for machines, production lines, locations, divisions, channels, or other groups.
- Simulate costs and analyze variances: Expand cost analysis with detailed cost simulations and maintain multiple product cost versions to compare results and inform decisions.
The Value of Costing in Changing Business Environments
Recent events have taught finance and costing leaders that unpredictability is the new norm—making effective cost planning a necessity. Cost data impacts organizational decisions from quoting new business, selecting vendors and suppliers, planning production, and servicing customers. The most innovative teams have enabled costing models that generate planned, forecasted, historical, and simulated cost data to drive commercial and operational decisions.
This session highlights use cases of cost analytics models that predict how market shifts are cost changes that impact profits, evaluate performance compared to benchmarks, determine the success of quotes to actual performance, and establish targeted cost management programs.
Resources
Get Quick Insights and Best Practices
Visit the Video Library >Creating a Cost-Focused Culture
Watch the Webinar >Is Your Product Costing Process Healthy?
Get your Score >Daily News for Finance Leaders
Read The Ledger >Guide to Implementing Cost Systems
Watch the 30-min Q+A >Ready to see ImpactECS in action?
Get a glimpse of how we help companiesunderstand their costs and profits