Costing and profitability
Costing and profitability solutions address many issues faced by the management of today’s companies, ranging from support for decision making to compliance with regulatory requirements. The objective of cost accounting is tracking expenditures to specific products and services. Profitability helps companies define their product strategy and pricing, assists during forecasting, etc.
Some of the benefits of using cost accounting
- More accurate assignment of costs.
- Sharper identification of profitable customers.
- More accurate identification of value-generating products and services.
- Greater ability to predict future revenue flows.
- More accurate budgets.
- Tighter control of costs.
- Better pricing models.
- More efficient processes.
PwC’ proven methodology is flexible enough to be applied across a wide range of industries and to address the different needs of our clients.
How PwC can help you
- Review your current costing system and its related processes of transfer charging, reporting, financial planning, budgeting and controlling.
- Introduce Activity-Based Costing, Activity-Based Budgeting, Activity-Based Management, Economic Value Added and Balanced Scorecard methodologies.
- Develop a concept design of a costing model and select an appropriate costing technique.
- Map processes and identify available data sources.
- Advise you on the selection of a supporting IT tool.
- Implement (develop or customise) costing software, define interfaces and perform system testing.
- Train client staff, create user manuals, and define work programmes.
- Define reports and integrate the costing model with MIS, DSS, and SEM systems.
- Provide regulatory support and assurance over the costing model if required.
- Implement best practice financial processes.
For clients that do not possess an efficient and reliable costing solution, we offer our own customised ABC model that can be tailored to any company and implemented within a relatively short timeframe.