at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost A cost cutting strategy is very popular in the business world, especially during recession or falling revenue periods. The Business which achieves to maintain the ‘cost leader’ position, has a major competitive advantage. The ability to sustain a low cost position, is a precondition for long term development in any highly competitive environment. To achieve that, a business has to develop core competencies in lean production, which cannot easily be copied by Competition.

The use of financial and managerial accounting systems for production cost measurement and control, is a common practise.

Profitability monitoring is also enabled by accounting systems. The use of profitability ratios at the organizational level, at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost a

on, has a major competitive advantage. The ability to sustain a low cost position, is a precondition for long term development in any highly competitive environment. To achieve that, a business has to develop core competencies in lean production, which cannot easily be copied by Competition.

The use of financial and managerial accounting systems for production cost measurement and control, is a common practise.

Profitability monitoring is also enabled by accounting systems. The use of profitability ratios at the organizational level, at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost

business has to develop core competencies in lean production, which cannot easily be copied by Competition.

The use of financial and managerial accounting systems for production cost measurement and control, is a common practise.

Profitability monitoring is also enabled by accounting systems. The use of profitability ratios at the organizational level, at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost

n cost measurement and control, is a common practise.

Profitability monitoring is also enabled by accounting systems. The use of profitability ratios at the organizational level, at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost

at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost analysis contributes to the product pricing strategy and profitability estimation. Use of cost accounting techniques like activity based costing, requires monitoring the following facts:

• Unit rate for each cost driver which is related to the production of a product or a service (e.g. man hour cost for a specific specialization is 35 Euro)
• Actual consumption of each cost driver for the production of a unit of a product (e.g. 4 man hours are required for the drafting of a contract).

Cost drivers relate to direct production costs for which assignment is obvious, as well as indirect production costs for which assignment is done via calculations (e.g. estimation of a room space which is hosting a s