Costs Studies Based on Process Costing
Cost studies to determine costs of products, customers, regions, distribution channels, branches, among other business segments. Real costs are needed to obtain profitability at a “granular” level. The main activities to develop a costs study are:
- Gather accounting structure, costs and expenses for a period defined for the study of process costs.
- Define processes at a basic level.
- Identify products, services, distribution channels, sales regions among other segments of business to afford.
- Identify indicators for costs assignment, ie cost drivers for assigning cost to every processes.
- Association of accounting (costs and expenses) to processes for costing.
- Association of activities and processes to the products, services, customers, distribution channels and other segments to obtain costs.
- Get the costs of each business segment.
- Get profitability by associating costs with detailed granular revenue for every business segment.
Once costs and profitability are calculated, next steps are: to generate a list of opportunities and validate inside the organization in order to further work on the implementation of opportunities. Our costs study, can give your organization in a short period of time, a complete understanding of value-added processes, products, customers or regions and a list of opportunities to implement.