Focost

Focost Activity Based Costing and Management Services, Financial Accounting Services, Cost Engineering for Capital Projects Services

Focost specializes in Activity Based costing applications. Cost focus strategy ensures that an organization can analyse and interpret their operational and financial information to ensure proper management of costs and operational strategies.

15/11/2020

CONTINUOUS IMPROVEMENT WITH ACTIVITY-BASED COSTING (ABC)
The implementation of ABC can make the employees understand the various costs involved. This will then enable them to analyze the cost, and to identify the activities that add value and those that do not add value. Finally, based on this, improvements can be implemented and the benefits be realized. This a CONTINUOUS IMPROVEMENT PROCESS in terms of analyzing the cost, to reduce or eliminate the non value added activities and to achieve an overall efficiency.
ABC has helped enterprises in answering the market need for better quality products and services at competitive prices. Analyzing the product and service profitability and customer profitability, the ABC method has contributed effectively for the top management's decision making process. With ABC, enterprises are able to improve their efficiency and reduce the cost without sacrificing the value for the customer. Many companies also use ABC as a basis for a BALANCED SCORE CARD.
This also enabled enterprises to model the impact of cost reduction and subsequently confirm the savings achieved. Overall, Activity-Based Costing (ABC) is a dynamic method for continuous improvement. With Activity-Based Costing any enterprise can have a built-in competitive cost advantage, so it can continuously add value to both its stakeholders and customers.
(From 12 Manage - All About Activity-Based Costing)

15/11/2020

TYPICAL BENFITS OF ACTIVITY-BASED COSTING
* Identify the most profitable customers, products and channels
* Identify the least profitable customers, products and channels
* Determine the true contributors to, and detractors from, financial
performance
* Accurately predict costs, profits and resources requirements
associated with changes in production volumes, organizational
structure and costs of resources
* Easily identify the root causes of poor financial performance
* Track costs of activities and work processes
* Equip managers with cost intelligence to stimulate improvements
* Facilitate a better Marketing Mix
* Enhance the bargaining power with the customer
* Achieve better positioning of products
(From 12 Manage - All About Activity-Based Costing)

19/09/2020

THERE IS NO KEY TO SUCCESS BUT THERE IS A ROADMAP.
Focost is your roadmap to success in your business and can guide you into following the right directions to successfully arrive at your destiny, EVERY TIME, ON TIME, ALL THE TIME. No business can go without the Focost roadmap, so why not contact Focost for your roadmap to business success !

03/09/2020

Good day to all,
My name is Deon Stals and I'm searching for work. I'm a qualified accountant and cost engineer(in Saudi Aramco environment) with many years of experience in different industries locally and abroad. I also specialize in Strategic Management Accounting solutions in the methodology of Activity-Based Costing and Management and Cost Engineering for capital projects.
Any available related opportunities for work / projects / assignments on full time and / or part-time basis will be great and highly appreciated if I can be placed successfully. I'm available currently and willing to travel and / or relocate if required. I can be reached at (+27) 083 645 0969 and [email protected] and [email protected]
I can forward my CV to you at your available address.
Awaiting soonest replies.
Yours sincerely,
Deon Stals.

01/09/2020

What is the difference between activity-based costing (ABC) and
activity-based management (ABM)?
ABC has been around for some time. It has promised companies a new way to understand costs and a new way to limit these costs to the products and customers driving them. It has been heralded as the cost accounting model that would help management improve profitability. And it is fair to say that it does do that if:
1. management gains a thorough understanding of its business processes and cost behaviour during the ABC analysis process; and
2. management applies the insights gained during ABC fact gathering and analysis to improve decision making at both operating and strategic levels. This is the essence of ABM.
Put simply ABM is ABC in action.
ABC prompts managers to ask the right questions. ABC becomes ABM (management) when it is used to:
■ design products and services that meet or exceed customers' expectations and can be produced and delivered at a profit;
■ signal where either continuous or discontinuous (re-engineering) improvements in quality, efficiency and speed are needed;
■ guide product mix and investment decisions;
■ choose among alternative suppliers;
■ negotiate about price, product features, quality, delivery and service with customers;
■ employ efficient and effective distribution and service processes to target market and customer segments;
■ improve the value of an organization’s products and services. (CIMA)

01/09/2020

Part 1 –
General FAQs
Why have organisations turned to activity-based techniques?
Management practices and methods have changed over the last decade and will continue to change.
Organisations are moving from managing vertically to managing horizontally. It is a move from a function orientation to a process orientation. Total quality management (TQM), just-in-time (JIT), benchmarking and business process reengineering (BPR) are all examples of horizontal management improvement initiatives. These initiatives are designed to improve an organisation's work processes and activities to effectively and efficiently meet or exceed changing customer requirements. Management information systems to track and provide
information about the horizontal aspects of a business have lagged significantly behind the needs of its managers.
Activity-based costing/activity-based management fills this information need by providing cost and operating information that mirrors the horizontal view. The focus of ABC is on accurate information about the true cost of products, services, processes, activities, distribution channels, customer segments, contracts, and projects.
Activity-based management makes this cost and operating information useful by providing value analysis, cost drivers, and performance measures to initiate, drive or support improvement efforts and to improve decisionmaking.
(CIMA)

01/09/2020

ABM supports business excellence by providing information to
facilitate long-term strategic decisions about such things as
product mix and sourcing. It allows product designers to understand the impact of different designs on cost and flexibility and then to modify their designs accordingly. ABM also supports the quest for continuous improvement by allowing management to gain new insights into activity performance by focusing attention on the sources of
demand for activities and by permitting management to create behavioural incentives to improve one or more aspects of the business. (CIMA)

01/09/2020

ABC is not a method of costing, but a technique for managing the organisation better. It is an exercise which measures the cost and performance of activities, resources and the objects which consume them in order to generate more accurate and meaningful information for decision-making. ABM draws on ABC to provide management reporting and decision making. (CIMA)

01/09/2020

Activity-based costing and activity-based management have been around for more than 34 years. Most forward-thinking companies have implemented them, or are in the process of doing so. (CIMA)

01/09/2020

Activity-based management and activity-based costing (ABM/ABC)
have brought about radical change in cost management systems.
ABM has grown largely out of the work of the Texas-based
Consortium for Advanced Manufacturing-International (CAM-I). No
longer is ABM’s applicability limited to manufacturing organisations.
The principles and philosophies of activity-based thinking apply
equally to service companies, government agencies and process
industries. The acronym itself has evolved from ABC to ABCM (activity-based cost management) to ABM, and the application of ABC
evolved from a manufacturing product costing orientation to a management philosophy of activity management applied in industries and
organisations other than manufacturing. (CIMA)

01/09/2020

Cost drivers “drive” costs. The number of steps required to serve a customer drives the cost of serving the customer. That may sound really dumb, but one of the benefits that ABC provides is an insight into how changing the number of cost drivers changes your costs. For example, suppose that instead of spooning three heaping tablespoons of chili onto a chilidog, you purchase one spoon equivalent to three tablespoons; this would change the number of steps from five to three.
Changing the number of steps required to serve a customer a chilidog changes the cost of the serving activity for a chilidog. And changing the cost of serving a chilidog changes the profitability (potentially) of serving a chilidog. I say “potentially” because you may not actually be able to reduce your wages expense by buying a three-tablespoon spoon for lathering up your chilidogs with chili, but you get the idea.

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