Tag Archives: Product Costing

New Priorities For Modern Cost Management

According to Deloitte’s global cost management survey, cost reduction is now a global imperative, with 86% of global respondents saying their companies are likely to undertake cost reduction initiatives over the next 24 months. Cost management ha become a strategic enabler with the power to disrupt entire industries and fundamentally change how companies do business […]

Breaking Down the Barriers of Personalized Cost Visibility in Manufacturing

Customers are ever-evolving and gravitating towards more personalized products that meet their unique specifications. For manufacturers, meeting this demand for high-quality individualized goods is nearly impossible to do in a cost-efficient manner with outdated operational processes based on yesterday’s technology. Therefore, organizations are looking to transform their facilities into open integrated factories – the kind […]

Is Cost-Plus Pricing Right for Your Business?

The idea behind cost-plus pricing is simple: the seller calculates all costs (fixed and variable) incurred in manufacturing the product, then applies a markup percentage to these costs to estimate the asking price. This method can lead to powerful differentiation, greater customer trust, reduced risk of price wars, and steady, predictable profits for the company. […]

Costing for Complexity is…. Complex.

“In today’s fast-moving consumer goods environment, consumers demand an increasing degree of differentiation. Serving this need comes at a cost.” Accommodating the multiple SKUs that come from differentiation adds significantly to production costs for companies that produce fast-moving consumer goods. Cost accountants have an opportunity to provide significant value by assisting their companies in fulfilling […]

Better Decisions with Transparent Costing and Profitability Insights

“With companies under pressure to improve profitability, many seek higher levels of transparency into financial performance to uncover insights that can enhance decision-making and create value.” Business leaders need actionable analytics to recommend actions that improve the bottom line; such as adjusting pricing, reducing product costs, and rationalizing unprofitable products or services. However, many companies […]

Leading Consumer Goods Companies Are Mastering Cost Complexity

In today’s fast-moving consumer goods environment, consumers demand an increasing degree of differentiation. Serving this need comes at a cost. Today’s consumers have completely changed the consumer goods environment because their demand is increasing, and businesses have to find a way to keep up if they want to remain competitive and profitable. Many goods come […]

Is Activity-Based Costing Worth It?

Manufacturing companies need to understand product costs accurately and in detail. This kind of information is essential for planning operations, pricing, and evaluating business margins. Activity-based costing helps manufacturers identify what products are truly profitable, the true costs of products for pricing, and what activities are driving costs. However, activity-based costing is known for being […]

How Effective is Your Costing?

Many companies are using a costing platform that is more of a “one-size-fits-all” system. What they don’t realize, is that the insights there are getting from these systems are inadequate for important decision making because they aren’t tailored to their specific business needs. Another barrier to effective costing is understanding the difference between the costing […]

Simplifying Cost Control In Real-World Complexity

“Spending decisions are best made with collaboration and guidance.” Now more than ever, employees expect more freedom to spend capital much in the same way they buy their personal items. And while most finance organizations are finding ways to eliminate paperwork, streamline processing, and provide mobile access, CFOs are only chipping away at what they […]