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Cost Analysis

To constantly evolve and make a profit, you need to identify the exact cost of your products, services, channel, brand, and more. Knowing the right cost involved behind an offering can help you define the right pricing plan and strategy to keep your business in a profit-making state. We, Independent Consulting Solutions Bermuda, have a team of highly experienced cost accounting professionals that hold years of experience in providing cost accounting services and cost analysis services. Our team includes analysis of tangible and non-tangible, plus, variable, and fixed costs involved in each stage of product development. This gives a more detailed insight to control your costs and define the business plan that can yield higher returns on investment (ROI). Make more informed and data-driven decisions to achieve more than targeted profit with the best cost analysis services of Independent Consulting Solutions Bermuda.

1: Variance Analysis

The process we follow to execute variance analysis

Determine the variance between an actual and expected cost
Investigate the causes of the variances & type of variances
Reporting to the management of variance and its causes
Advise corrective actions to curtail variances

Commonly the variance can be split into two elements:

Planning variance – Variance that has resulted because of lack of planning or mistakes in the scenarios assumptions for the tasks execution
Execution variance – Variance that has resulted because of flaws in the execution of the tasks
Profit Center and Cost Center Analysis also knows as cost class analysis

2: Contribution Analysis (Marginal Costing)

Contribution analysis evaluates the contribution made by a product or product line to the profit. It also studies the impact of internal as well as external factors in the contribution. It explains the effect of contribution on the sales of each unit and fixed costs. Hence, the total contribution in a surplus of total fixed costs becomes the profit.

This is very important for the profitabiity analysis, feasibility analysis, and other such analysis.

It can be formulated as “Contribution Margin per product = Unit selling price of a product – Variable Costs of the product.

3: Break-Even Analysis

Break-even analysis enables a business organization to:

Measure profit and losses at different levels of production and sales.
Perform Sensitivity Analysis and Scenario Analysis
Predict the effect of changes in sales prices.
Analyze the relationship between fixed and variable costs.
Predict the effect of cost and efficiency changes on profitability.

4: Overhead Analysis

All costs of the product excluding material and labor costs are called overhead costs in costs accounting and analysis.

In general, the overhead cost can be of two types:

Fixed Overhead costs – Fixed overhead costs based on the installed capacity and generally remain constant every month regardless of the total production.
Variable overhead costs – The variable overhead costs may vary with the changes in total production.

Result-oriented Solution

Elevate your profit margin with reliable cost analysis using the cost accounting services to make your business rapidly achieve major business milestones:

Independent Consulting Solutions Bermuda has a veteran team that can provide cost accounting services and keep an eye for detail to run in-depth cost analyses by considering various factors to give more concrete and dependable data. Whether you want to redefine your price strategy or you want to attract investors, crystal-clean cost analysis and cost accounting reports will aid you to capture all your business goals.

Variance analysis helps you scrutinize the area of concern by identifying causes of high revenue and high expense.

Contribution analysis of the product can help in identifying each contributing factor and define what drives more profit depending on fixed and variable cost elements.

Break-even analysis assists in better sales and production planning by discovering the break-even point, which defines a no gain and no loss position for your business.

Overhead analysis helps you be more strategic while allocating the budget to production or other aspects. Identify the top fixed and variable overheads and check their effect on the overall profit to make a more sustainable profit-making strategy.

Periodic cost analysis and accounting can benefit in leveraging the power of data assigned to different elements and making more informed decisions to keep generating high-profit margins and astounding your stakeholders.