Do you want to set up a cost price management system, implement performance indicators, use dashboards, introduce a project management technique? SIM’s business management experts can support you in these implementations. From requirements analysis to implementation and training, we help you to put the latest top-performing management techniques and tools into operation.
SIM has understood the importance of conducting a business analysis before becoming involved with a company in order to have a complete understanding of the real requirements and thus have an overall picture of the company’s functions. During implementations, SIM always analyzes a company concerning the level of education received in relation to the targeted objectives and creates a table of skills required by the company for related positions for later comparison with the relevant employees.
Involvement and implementations are then adjusted as needed. The client pays not only for a program completely adapted to his reality, but also for training and support that are much more targeted. Then we move on to coaching to ensure that the techniques implemented are followed and that the expected results are achieved.
Cost price follows precise accounting techniques that can give different results. The allocation of general manufacturing costs is an excellent example. There are several ways to allocate overhead costs to products for which you want to know the cost price. For the last 15 years, and even earlier, accounting courses on cost price have taught the so-called traditional methods. Since then, activity-based costing (ABC costing) has changed the way product cost price is done. Obviously, in the last decade, accounting associations have taught and promoted this way of managing production in manufacturing industries and sometimes service companies. Given that the Europeans and Asians use these accounting methods for their cost price, it is important for companies to master these methods so that they can remain competitive and know which activities cost the most so that they are in a position to improve them.
We must not forget that activity and process-based accounting are an integral part of the continuous improvement (LEAN) system, with its goal of always improving quality while reducing costs. There is also European software such as SAP, Navision and others that are built using the concepts of activity-based accounting rather than traditional accounting, which can cause headaches for those who do not know these concepts. This is why, during implementations, we ensure the accuracy of costs incurred in order to determine the correct cost price.