Tag Archives: Product Costing

How to Strategically Cut Costs Across the Enterprise

There are several steps businesses can take to develop a structural process for an enterprise cost reduction program in a way that positively impacts every aspect of the organization – not just the bottom line. For decades, businesses have made cost reduction a priority to increase profits and drive growth. In recent years, digital disruption, […]

7 Fundamentals of a Successful Costing Methodology

For many businesses, spreadsheets are a large part of their costing reality and have proven to do more harm than good when it comes to truly understanding business performance. Establishing a robust costing process doesn’t have to depend on spreadsheets or rigid ERP cost modules. With an integrated costing analytics tool, finance leaders can get access […]

New Costing Priorities Are Changing the Way We Do Business

In the wake of digital transformation becoming a standard business practice, it is no surprise that modern organizations are shifting their costing priorities from cost reduction to cost transformation. Companies that relied on more traditional cost management methods are now finding that dynamic technologies can open the door to a whole new level of savings. […]

Are You Benefiting from Your Cost Accounting Tools?

Companies that still rely on their legacy costing systems are putting themselves at more of a disadvantage then they probably realize.  “Many manufacturers have developed overhead rates that are being used long after their “best if used by” dates. The reasons for this include the thought that inflation isn’t all that significant, so how much […]

Cost Management is Evolving With the Help of New Technologies

“Making effective cost management decisions—those that drive strategic value beyond just producing short-term savings—requires understanding how cost decisions flow through to the top and bottom lines.” CFOs depend on insights from their analytics for important business decisions, but when faced with the rapidly changing business environments, they must change their approach to cost management. By […]

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 […]