If sales increase, so should profits. Yet, the opposite result often leaves executive's scratching their heads. When organizations work with inferior cost information, they make mistakes in four specific situations. Bad information causes sellers to overprice easy, high-volume work and underprice difficult, low-volume work.
This session discusses how to use activity-based costing data to build accurate costing models that consider far more than just the labor and materials necessary to provide goods and services.
After attending this presentation you will be able to...
- Use accurate and effective cost models
- Predict for profit with accuracy
- Select accurate costing models
The major topics covered in this class include:
- Building computer costing/pricing models & sub-models
- The importance of volume-sensitive models
- Your most important indirect costs
- Using rate tables
- Modeling - professional services job costs
- Modeling - repetitive manufacturing
- Why a return on sales may be an inferior way to plan for profit