Cost Accounting

Over a period of time, many companies find themselves in a position where their current costing procedures do not accurately reflect their current methods of manufacturing, their current methods of delivery, or their current costs of purchased components. As a result, these costing procedures produce erroneous product/service cost information.

This erroneous product/service cost information, in turn, is used to erroneously update the selling or quoting prices of their products, which, in turn, can cause serious customer relationship problems, or even worse, can create lost sales opportunities. This issue can become critical as companies are forced, due to competitive pressure, to reduce their gross margins in order to win additional sales, without having an accurate picture of their current costs of their products or services.

This cost management issue can occur, many times without the customer's knowledge, because over time the customer experiences an erosion of product cost management knowledge, and the related cost management procedures, due to turnover or re-assignments of its costing staff, or due to the lack of internal cost management skills.

Our Cost Accounting Services are designed to:

  1. Offer the companies to conduct a formal review of their current product costs, and related procedures, to insure that their current costing procedures are producing accurate product costs. This review includes validating the use of all cost components, including material costs, labor costs, and all burden calculations.
  2. Help companies update their current, standard, or actual costing procedures to reflect changes that they have made or plan to make in their manufacturing or purchasing processes.
  3. Help companies implement changes to their core costing procedures, which should be reviewed and updated, if required, at least quarterly, semi-annually, or annually.
  4. Help companies with their annual or semi annual review and update of targeted costs for their new fiscal year.
  5. Train in-house accounting staff on the proper use of the cost management procedures as they relate to managing costs.
  6. Augment the internal management team with experienced external financial management resources that are very knowledgeable about the effective management of product costs, and the effective use of its Enterprise Management Software costing functionality.
  7. Implement support for activity based costing.