It is vitally important for a business to know as precisely as possible the cost of its products or services provided. This cost is subsequently used by the business administration executives in various aspects of decision making. More often than not, in practice, costs/cost lists are based on vague calculations and general surcharge rates, thus causing headaches to businesspeople when they have to make cost-related decisions.
Decisions that can be made a lot easier if based on a proper and comprehensive cost study may be of the following kind:
• product or service pricing
• replacing a machine with a better/faster one
• selling privately owned vehicles and outsourcing transportation of goods
• establishing flexible work arrangements
• removing a product or a service from the market
• looking for a less expensive supplier of raw materials
The methodology followed in order to perform a Cost Accounting Study and implement the ensuing pricing system is as follows:
If necessary, our cost accounting consultant will present the model to a client-selected software company, which will then develop an information system incorporating the costing model.
Relying on their knowledge and experience, the staff at COSTWISE are in a position to select the most appropriate costing model and implement it to fully meet each individual business/client’s needs.