Who or what is profitable?
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Who or what is profitable?

Not all products/services and customers make a contribution to the bottom line. Gross profit may look good, but what about all those less obvious “overhead” costs?

bulletSales calls
bulletQuotations
bulletChasing payment
bulletProcuring special components
bulletShort batches
bulletEmergency call-outs
bulletChasing payment

Activity Based Costing (ABC) can determine these costs by product/service and by customer. Now you can see the real picture.
Perhaps your competitors already have . . .

How we can help

We can:

bulletIdentify the statistics that matter
bulletIdentify what drives your department managers' costs
bulletHelp you choose appropriate software
bulletDesign and build your ABC model
bulletMake the connections: stats in, results out
bulletKeep the detail SANE
bulletSimple
bulletAppropriate
bulletNear-enough (Pareto's 80/20 rule)
bulletEasy to maintain

 

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