Finance and accounting

Company Manufacturing industry – various companies
Project type and duration Introduction of decision-based cost accounting,
15 to 25 man days
Our role Project manager/advisor
Background During our project work, we regularly found that a lack of statistical transparency (divisional results, profit contributions from individual cost centres etc.) made adequate identification of weak points impossible, and as a result the necessary changes had not been brought in.
Remit and results

The MSP financial control specialists quickly implemented robust, decision-based cost accounting by:

  • Developing a budget based on cost centres that was tailor-made for the company
  • Implementing cost-type accounting and operating income accounting
  • Calculating KPIs for profitability, productivity, liquidity and value creation
  • Analysing cost structures and assessing costs
  • Dividing costs into fixed and variable components, direct costs and overheads
  • Performing cost-centre accounting (by area of responsibility, function and process)
  • Performing cost-unit accounting to assess products, divisions, customers or areas
  • Ensuring that cost accounting was implemented in the existing accounting and financial information systems

On our advice, the company introduced a meaningful cost accounting system (including all elements such as cost-type accounting and cost-centre accounting) as well as reporting based on cost accounting and a performance analysis system on which to base informed management decisions.