Industry in Packaging materials wants to acquire a more efficient costing methodology.
Following a detailed analysis of the company’s needs and several discussions with the key stakeholders, LPS and the team identified the following issues:
- Inability with existing methods to allocate indirect and labor costs to company’s cost centers.
- Estimation of the indirect costs as a percentage of sales.
- Absence of Strategic Cost Control.
LPS, utilizing international practices and tools :
- Developed a costing software which is capable of allocating direct and standards costs into the right cost centers.
- Allocated and categorized Indirect costs per product.
- Developed a software for ”Dynamic Costing.”
LPS and the team implemented the proposal and:
- Achieved successful Costing Analysis per product and category
- Ability of using “Dynamic Costing” for strategic cost control