Profitability Analytics

Profitability Analytics, Costs and Cost Management

Understanding profitability at the granular level (products/services – customers – channels) is a common theme in world class organizations. This requires a good and deep understanding on costs associated with delivering your products and services. CRGroup can help you determine these costs and this your true profits!

CRGroup offers services and solutions that incorporate Activity-Based methodology and provide analytics at the activity and process level in addition to insights on product/services profitability. Additionally, our solutions also include analytics on profitability or cost across:

  • products
  • services
  • customers
  • channels
  • business units and divisions

Understanding True Profitability with Activity-Based Costing

Through better information of product and client profitability, Activity-Based Costing and Management (ABC/M) improves decision-making.

  • understand and improve enterprise-wide processes
  • break through silos
  • align costs to products and services, increasing cost visibility and manageability
  • shift to results-based reporting
  • understand and act on Shared Services costs and performance

Activity-Based Costing and Management is the foundation for better understanding the “true” profitability of products and services, and for identifying improvement initiatives. By matching costs more closely with the activities and processes that trigger them, you will have the power to effectively

  • manage costs
  • improve process
  • positively impact profitability
  • enhance decision-making

Why is Activity-Based Costing Important?

ABC/M is ideal for multiple product, multiple service, and multiple client organizations who are suffering from incorrect costing information. Traditional cost allocation methods allocate overheads by arbitrary allocations of indirect costs which are often wrong. ABC/M minimizes these distortions in your costing.

Unlike traditional allocation methods which cannot be linked tied to specific outputs, ABC/M helps identify indirect costs and identifies pockets of process efficiencies. It makes you more competitive by measuring product and client profitability with higher accuracy and helping determine the cost-effectiveness of activities and processes.

ABC/M is for Organizations of all Sizes, Industries and Sectors

Contrary to popular belief, ABC/M is not just for the Fortune 500, as its principles and effects are the same for smaller organizations. It provides a clear metrics for improvement, and encourages management teams of all sizes to discover opportunities to improve their business process effectiveness.

By helping managers identify their value-added activities – those that will best accomplish a mission, deliver a service or meet a customer demand – ABC/M improves decision-making with better information and eliminates waste by encouraging employees to look at all costs. The essential part of any ABC/M endeavor is to get a clear picture of the activities and processes that the entire organization performs. When employees understand the activities they perform, they can then better understand the costs involved.

In addition we have vertical and robust solutions that span manufacturing, distribution, banking (Vantage Point), public sector and service sector. Call us so that we can show you how we can reduce time to market for your needs at a cost lower than any other global vendor of services and software.

Explore CRGroup Products & Solutions for Costing and Profitability Analytics

CRGroup develops and distributes innovative, practical and proven technology solutions to help businesses succeed.

Explore our solutions below. Not sure what’s right for you? Contact us to book a free consultation.

Costing Solutions from CRGroup:

Explore CRGroup solutions for activity-based costing & management.

cost allocator album

CRG Cost Allocator™ is a flexible and efficient costing application that performs multi-level step-down cost allocations by percentage, fixed value, cost drivers, or balances in other accounts to determine true costs and profitability. It automatically connects to various General Ledgers and creates journal entries

Flex ABM logo

FlexABM® is a proven enterprise-wide Activity-Based Costing and Management (ABC/M) solution that identifies the true cost of all activities and provides decision-makers with the analytical tools, models, and methodologies to effectively evaluate business processes.

Corporate Performance Management & Budgeting:

Automate & streamline budgeting & corporate performance management efforts with BOARD™ and Adaptive Insights™, proven & powerful solutions for any business type.

View All CPM/Budgeting Solutions

BOARD partner logo

BOARD:

All-in-One Business Intelligence, Performance Management and Analytics in a single platform.

Adaptive Insight's logo

Adaptive Insights:

Adaptive Insights is the worldwide leader in cloud-based business analytics solutions for companies and nonprofits of all sizes.

Contact Us to Learn More about our Expert Services & Solutions

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