COST STRUCTURE / PRICING
The main objective of this service is to objectively and assertively determine the cost of each product or service, product family or business unit of the company, and from there, make the best decision for pricing the sales.
Our methodology starts on defining the processes and activities of costing process, including interviews with those responsible for functional areas, analysis of production chain, better definition of cost centre and chart of accounts, so we can define the best strategy for allocating direct and indirect expenses, investments and apportionment criteria in production lines.
Using an absorption costing, we analyse the production flow to elaborate the standard formula of the product, including the following items:
- Raw material
- Packaging material
- Direct labor
- Quality Control / Assurance
- Factory overheads
So we can create all the analytics, KPIs and reports to proper manage variable Cost, direct labor, absorption costing, standard product formula, pricing and analysis of variable, gross and contribution margins.