Many leaders of today’s organizations are looking for immediate answers to questions about cost reduction and profit increase. How can you address cost efficiencies across the entire organization while quickly having an impact on quarterly profits? Suffering from difficult economic times and uncertain forecasts? Most companies need real solutions and they need them NOW.
It's impossible to make informed, bottom-line oriented decisions if you don't have the right information. Deloitte delivers an integrated solution, one that examines all the components of your cost structure. Business process, organizational structure, financial and tax considerations and technology and risk issues are addressed by our team of industry experts, offering you the best opportunity to transform your cost structure to be competitive for today...and tomorrow.
That's where Activity-Based Costing and Activity-Based Management (ABM) come in. Deloitte will analyse your current Operational and Procedural Framework, determine appropriate cost centres and drivers and build a customized ABC template to provide accurate product / service costing information and enable cost comparison across divisions / organisational units. You can use that information to set up ABM approaches to price changes, product positioning and continuous improvement plans, giving in this way a substantiated answer to all major challenges that you face.
With an ABC analysis and with the implementation of an ABM system, an organisation is able to:
• Prioritise the business areas / functions, according to the value that is delivered to the final customer
• Monitor areas / functions in greater detail as the Activity Based Costing analysis is intended to focus on specific products / group of products, on groups of customers, on distribution channels and on production activities not previously examined as separated activities.
• Recognise the absorption of costs, by the followed activities within the entity and critically evaluate the specified costs and activities.