How much does your product truly cost? What are the margins of each product line? Manufacturing operations make up a large part of the business, but the key drivers and metrics of manufacturing companies do not rise to the surface if the company is missing out on access to the level of talent and skill required for cost and management accounting. These capabilities have become somewhat of a lost art as the level of manufacturing in the United States has waned over time.
Cost accounting experts will break down the many layers—including the cost of labor involved, the materials you use, and the leasing costs of the equipment and facilities—to provide actionable information to management.
By collaborating with finance and accounting experts who understand manufacturing financial issues and cost accounting, you can benefit from key metrics that will help you make better, more comprehensive, fully informed decisions. This data can be useful as you plan budgets, explore your options for controlling costs, negotiate pricing with suppliers, and calculate the financial impacts if you were to add or detract from your product offerings.