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transparent – and also as a free mobile version available

Modern cost accounting in situations without inventory cost data such as data from SAP ©

The requirements to fast, valid and transparent costs calculations in an agile environment are getting bigger and bigger. Everyone needs “as quickly as possible (asap)” a cost statement with the highest possible accuracy, prepared in a manner that is negotiable, traceable at all times, transparent and traceable. It is already clear to many analysts that these Excel©-based calculations will reach their limits or it will become even clearer to remaining analyst’s in the very near future. Those who speak of costing, today, very often mean the calculation of manufacturing costs, i.e. the assessment of material and process costs for the production and manufacturing cost of a product. The cost of research and developing the hardware and or software, the cost of prototypes or even the cost of subsequent usage costs (typically called LCC- Lifecycle cost) are not at all (yet) into focus.

Professional software tools assist in the overhead calculation (Surcharge), are indispensable in benchmark analysis, help portray cost structures and the results are able to be produced in the required formats. However, the cost calculation very often ends with the manufacturing costs for purchasing, sales and project management in particular, the question arises of being able to calculate prices and not only the cost. In addition to the manufacturing costs, the overhead surcharge of the respective company is required. The overhead costs are usually made up of the overheads for materials, development, sales and administration. Based on the in several stages’ overhead calculation, these overhead costs are then applied to calculate the prices required.

To date, there is only the cumbersome way to consult a company accounting sheet or for internal purpose’s the controlling department to consult. The internal controlling department is completely unsuitable for external benchmark analyses. A large amount of information is required in order to completely fill with detail an operational accounting sheet. To do this, all cost objects must be distributed to cost centres according to a specified key. Since each company uses different keys and Methods are the actual costs incurred not transparent to outsider., It is hardly possible to get a benchmark in this cumbersome way. The above-mentioned areas of purchasing, sales and project management all have the need to complete the calculation of the surcharge (overheads cost) of a products or projects via a quick overhead analysis and thus to create an exact price calculation or a price comparison.

There is currently only one globally unique approach available that derives the overhead surcharge (overhead cost) for companies based on a few company-specific parameters using a mathematical surcharge-overhead model. The 4cost GmbH in Berlin has developed an overhead analysis tool for this particular situation. This Tool has been in productive use for around 9 years. The mathematics used in the background has been validated and calibrated from thousands of analyses, the benchmark of a variety of products and companies across the world.

This enables purchasing and sales departments in particular to quickly create the necessary transparency for prices and, conversely, to reflect on possible costs. All parties involved in the cost calculation should pay special attention to the multiple supply chain situation. Even with a two-stage supply chain and typical manufacturing companies, the manufacturing costs can increase by a factor of 1.7 to 2. Which does tremendously inflate the cost to a price. This unique solution is now also available as a solution for mobile devices. The entry into the world of overhead costs and thus the price calculation based on cost accounting (manufacturing costs) is now even made possible via a freeware version of the software Tool.


Freeware vs. Pro-Version

Freeware features

  • Only manufactures assessable
  • Limited Inputs (Main parameters)
  • Shot reporting
  • No file saving
  • Unlimited usable

Pro-Version

  • Manufactures & Service providers
  • Detailed and granulated company parameters
    (11 inputs for Producers respectively 8 for service providers)
  • Detailed Reporting
  • Multiple scenarios can be archived and saved
  • only 199,- € (net) a month

Interested in cost2price/pro (contact)

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