Background 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.
Introduction Our Cost Accounting Services are designed to:
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