Profitable individual cost accounting

basic information

<Operating Environment> Microsoft Excel <Product Description> Allows for cost calculation and profit and loss management of small lot products such as molds and prototypes, enabling the calculation of unit costs to determine estimated prices and capital investments. <Product Components> ■ Profitable Individual Cost Calculation_Manual.pdf (49 pages) ■ Profitable Individual Cost Calculation.xlsm (1.8MB) ■ Profitable Individual Cost Calculation_Example.xlsm (1.8MB) ■ 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 individual cost of one product from our company ■Based on the individual cost, calculate the selling price and implement pricing ■Before making capital investments, simulate the profits after the investment ◆Applicable products Molds, jigs, various prototypes, furniture, precious metal products, textiles, stone products, other small lot products, etc. ◆Applicable industries Metal products, plastics, rubber, food, textiles, wood, electrical and electronic, machinery manufacturing, etc. ◆Applicable processes Cutting, mixing, granulating, 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 served as the basis for the development of this tool. It outlines "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 that accurately 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 from the total profit of the entire company (profit from the income statement). If the total profit 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 price, process, and site of Product B. With "profitable cost accounting," you can understand the profit by product and your company's true "real" profit.

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  At the stage of estimating and pricing, the company's profit is already determined. 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 that determine the price calculated correctly and without omission? It cannot be calculated correctly unless there is "individual costing" within the company. This is a fundamental principle. Additionally, the prices of products that were lost in the past may have been too high. Understanding the contribution margin might have allowed them to win orders. "Profitable cost accounting" can calculate prices that ensure profit and prices that serve as countermeasures against lost orders. Let's conduct simulations repeatedly, analyze them, and determine a strategic price.

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  Capital investment involves a large amount of funds. Before making an investment, are you properly calculating whether profits will increase and to what extent costs can be reduced? This analysis cannot be done without "individual cost." Will it be profitable with the latest high-function, high-speed equipment? Which operation—part-time workers, multi-joint robots, or skilled workers—will be profitable? If it's "profitable cost calculation," you can easily find the answer. You can calculate and compare the costs and profits before and after the investment. It is necessary to simulate and analyze multiple times to make an investment decision. That investment may be a loss-making one that uses a large amount of funds without being profitable.