What factors should be taken into account when carrying out a cost analysis?
The basics of costing are direct costs, indirect costs and fixed manufacturing costs. The break-even point determines your working capital requirements, but forecast figures are based on the assumption of expected sales volume and selling price.
- Section 1
- The basis of costing
- Breake-even point and break-even point
- Determining cost with forecasts
- The need for data compilation and adjustment
- The different costs (e.g. R&D costs, production costs...)
- Marketing costs
- Section 2
- Pricing strategy
- The six pricing methods
- Competitive differentiation
Conducting market research
Participants will learn what they need to know to carry out a proper market study, the competition, and how to conduct a positioning analysis. This module will briefly cover segmentation/personas and how to evaluate efforts, tools and effectively reach target customers.
Section 3
- The market and its evolution
- PESTEL
- Cognizing the right way to analyze competitors
- Finding your distinctive competency
- Customer motivation and segmentation
- Potential market (volume)
- Marketing, a continuous process
- Marketing strategy
- Sales action plan
- From sales budget to strategy
How to estimate costs
In this module, participants will briefly explore the different aspects to be taken into account when analyzing costs, and which of the three methods covered is best suited to their needs. Particular attention will be paid to processing costs, essential for adding value to finished products, and to labor costs, the linchpin of human resources management.
Section 4
- Cost of raw materials and choice of suppliers
- Distinguishing between billable and non-billable tasks
- Managing labor costs for maximum efficiency
- Cost price and decision-making (the right price)
- Looking back at different costs
- Exercises
Planning and forecasting: strategies for optimal financial management
Participants will learn how to draw up financial forecasts for 2, 3 or 5 years, so as to have a clear, long-term vision of the financial health of their business.
They will also learn about the implications of profit management choices (dividends or future investments). Finally, they will look at the calculation of working capital requirements, crucial for maintaining sufficient liquidity.
- Section 5
The different types of accounting : - General accounting
- Cost accounting
- Taxation
- Financial forecasting for a long-term vision
- Fixed and variable cost management for financial flexibility
- The variable cost method
- The full cost method
- The activity-based costing method - Use of break-even analysis to secure profitability
- Precise calculation of working capital requirements to support activity
- Exercises
How to plan your cost price
In this module, participants will focus on the need to make financial forecasts in order to plan prices and profits so as to pay decent dividends and have sufficient profits for future investments. They will also see how to absorb recurring losses to include R&D investments.