Cost Accounting System
In manufacturing, the metrics of the past—output, overhead absorption, labor efficiency, detailed standard cost variances, and others—have been consigned to the dust bin of history. The “new” metrics have contributed only marginally to effectiveness in telling the story about performance and results in the manufacturing enterprise.
Activity-based Costing/Management is clearly a sensible alternative in seeking the underlying causality of costs but has not lived up to its potential in providing knowledge for resource allocation, activity value, and profitability analysis.
Accounting, once the den of arcane numbers, is now becoming the clarifier and interpreter of economic events through modern metrics and systems.
We assist clients in making cost management the dynamic clarifier of results and performance through:
- Development of profitability oriented activity-based costing;
- Identification and establishment of metrics that communicate value and performance;
- Advancement of “Theory of Constraints/Throughput” cost accounting approaches;
- Revitalization of “old” accounting systems through infusion of “new” cost accounting systems and new metrics; and
- Preparation of measures to expose the “hidden factory” of period-related labor and overhead costs.
The presentation of economic events and the measurement of results and performances are company- specific. At The Remington Group, we treat them that way and custom-tailor the appropriate cost accounting techniques to suit the individual company’s needs. To get started, click here or call 609.497.6400.