Cost Identification and Management for Your Business

Improve Cost Identification and Management Estimates

Are your organization’s pricing estimates accurate? 

Our mentors have developed a detailed cost identification and management assessment to help manufacturing organizations ensure they accurately estimating production costs when delivering quotes to clients. The Michigan Manufacturing Technology Center can help you set up an appropriate costing measurement plan like an activity based costing (ABC).

Activity Based Cost Management 

By implementing an activity-based cost management system, we can help you accurately gather data about your operating costs so you can stop all the guess work. In an ABC system costs are assigned to specific functional areas (planning, engineering, manufacturing, etc.) and from there the actives are associated with different products or services. This system allows the business owner to see which products, services and resources are increasing their profitability and which are not. Applications will focus on the transactional aspects of running a business as well the manufacturing of products, or the delivery of services.  The transactional aspects may include the costs of the relationship with the various material and service providers that must be maintained, as well as the costs of the relationships with customers. 

Cost Identification and Management Mentoring Services 

It is important to identify cause and effect relationships to objectively assign costs for your business. By using accurate costing data, your organization will benefit from:

  • Setting a selling price
  • Determining profit drivers
  • Better managing the business
  • Costing rates to prepare quotes
  • Make/Buy decisions
  • Identifying problem areas
  • Setting reachable  goals
  • Measuring impacts
  • Negotiating with suppliers and customers
  • “What if’ scenarios
  • Capacity management

The Center’s costing mentors are available to help your company obtain the benefits listed above. Our mentors will help clients diagnose various costing problems or to tune-up an existing model. Some issues that we can help with include things like updating current activities, processes, products or customers. We can also tackle subjects like targeting areas of high cost and developing implementation plans for waste & cost reduction.  Whatever your costing problem is, our Cost Identification & Management mentors can help. Schedule your free assessment today to get started with one of our talented costing mentors!

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