Profitable Standard Costing

basic information

<Operating Environment> Microsoft Excel <Product Description> "This product should be able to be made for ○○ yen." You can calculate the standard processing cost for one unit of the product. With a standard in place, you can determine the estimated price, capital investment, target cost, and fair price. <Product Components> ■ Profitable Standard Cost Calculation_Manual.pdf (51 pages) ■ Profitable Standard Cost Calculation.xlsm (2.1MB) ■ Profitable Standard Cost Calculation_Example.xlsm (2.1MB) ■ Please Read This First.txt

Price information

990 yen (tax included) / month *No charges will apply for months not used.

Price range

P1

Delivery Time

P1

Applications/Examples of results

■Calculate the standard cost of one unit of our product ■Calculate the selling price and set prices based on the standard cost ■Simulate profits after investment before making capital investments ◆Applicable Industries Metal products, plastics, rubber, food, textiles, wood, electrical and electronic, machinery manufacturing, etc. ◆Applicable Processes Cutting, mixing, granulation, heating, molding, turning, welding, surface treatment, assembly, steaming, filling, inspection, modification, etc.

Detailed information

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  This is an introduction to the e-book that serves as the basis for this tool. It outlines the "three reasons why many companies are not profitable" and their "solutions." These solutions have been developed into the tool "Profitable Cost Calculation." Profit and loss statements and accounting software do not allow for effective management decisions. Management decisions are often misguided. "For all small and medium-sized enterprises to be profitable." Published on Amazon Kindle. https://accounting-it.com/book-mkgenka

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  The operating profit on the income statement is incorrect. It does not reflect the true state of the company. The cause is depreciation expenses. It is necessary to understand the correct profit and the "true" profit that represents the company's current situation and reality through "profitable cost accounting." What happens to a patient if a doctor misdiagnoses their symptoms? The same applies to companies.

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  Nothing can be done based on the total profit of the entire company (profit from the income statement). For example, if the total profit for the company is 20 million yen and the profit by product is as shown in the diagram, immediate action is necessary. We must investigate and improve the cost, price, processes, and site of Product B. With "profitable cost calculation," you can understand the profit by product and your company's true "real" profit.

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  At the stage of estimating and determining prices, a company's profits are already established. In 80% of companies, there are products being sold at a loss from the estimation stage. The more they sell, the greater the losses become. I have seen many such companies. Are the materials costs, processing costs, selling and administrative expenses, and profits calculated correctly and without omissions when determining prices? It cannot be calculated correctly unless there is a "standard cost" within the company. This is a principle. Additionally, the prices of products that were lost in the past may have been too high. Understanding the contribution margin could have helped secure orders. With "profitable cost calculation," you can determine prices that ensure profits and prices that address lost orders. Let's conduct simulations repeatedly for analysis and decide on a strategic price.

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  Capital investment requires a significant amount of funding. Have you properly calculated whether profits will increase before the investment, and to what extent costs can be reduced? This analysis cannot be done without "standard costs." Will investing in the latest high-performance, high-speed equipment be profitable? Which of the tasks—part-time workers, multi-joint robots, or skilled workers—will be the most profitable? If you have "profitable cost calculations," you can easily find the answers. You can calculate and compare the costs and profits before and after the investment. It is necessary to simulate and analyze multiple times before deciding on the investment. That investment may be a loss-making one, despite using a large amount of capital.