Cost management and control seminar
This presentation is the property of its rightful owner.
Sponsored Links
1 / 10

Cost Management and Control Seminar PowerPoint PPT Presentation


  • 75 Views
  • Uploaded on
  • Presentation posted in: General

Cost Management and Control Seminar. suppliers of cement aggregates (crushed stone, sand and gravel) ready-mix concrete and asphalt Related services. The Holcim Group and Its Costing System. 70 countries on all continents, 90,000 employees 2006 Revenues: $ 21,825 M.

Download Presentation

Cost Management and Control Seminar

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Cost management and control seminar

Cost Management and Control Seminar

suppliers of

cement

aggregates (crushed stone, sand and gravel)

ready-mix concrete and asphalt

Related services.

The Holcim Group and Its Costing System

70 countries on all continents,

90,000 employees

2006 Revenues: $ 21,825 M

Group B31 Aldo Gallo Cáceres - Félix Morán Subía - Thiago Macitelli


Holcim group figures and value chain

+ 1050%

+ 480%

Emergent Markets

Established Markets

Holcim Group Figures and Value Chain

1980 Employees 18734

2006 Employees 90000

1980 Revenues $ 2,209 M

2006 Revenues: $ 21,825 M


Cement production process

Code: 100

RM Extraction

Code: 500

Cement Grinding

Code: 300

RM Preparation 2

Code: 400

Clinker Production

Code: 600

Dispatching (no main)

Code: 200

RM Preparation 1

Pre-process Cost Centers:

Correctives.

Gypsum and additives.

Mineral Components.

Power Generation.

Auxiliary Cost Centers:

Alternative Raw Materials.

Alternative Fuels.

Main Cost Center Classification

Cement Production Process

Main Cost Accounts

Corporate

Manufacturing

Corporate

Logistics

Marketing

& Sales

Administration


Costing system

Costing System

Process Costing

Major Guides of the Costing System:

Employee`s input:

  • Cost Centers.

  • Accounts codification.

  • General required description of the movement.

    The accounting software (SAP):

  • It has an internal assignation process, accounts are already internally tagged as: variable cash cost, Fixed cash cost, and others related.

    Key Issue: (Employee's Main Role for the success of the Costing System)

    Right Assignation of accounts and cost centers.


Cost drivers

Cost Drivers

Main Information Behind

  • Cost center’s impacts on total cost

  • Relevant costs

  • Main opportunities for cost reductions.


How to choose a costing system

How to Choose a Costing System

  • An accounting system established to monitor a company's costs, providing management with information on operations and performance.

  • Process costing

    • High volume

    • Are identical

    • identical amount of direct labor

    • Repetitive operations

  • Job Order costing

    • typically low volume

    • Tend to be unique (custom order)

    • different amount of direct material

    • different amount of direct labor


Decision making planning and control process

Decision making planning and control process

Cost drivers

e.g. Process improvement, change raw materials, etc.

Performance indicators

Adjust the plans

From: Drury (2004). Management and cost accounting. 6th edition. ISBN 978-1-84480-703-1


Decisions making process using costing system

Decisions Making Process Using Costing System


Decisions making process using costing system1

Decisions Making Process Using Costing System


Possible decisions

Possible decisions

  • Process improvement (e.g. reduce the number of stops by increasing preventive maintenance)

  • Change fuel supplier to reduce costs

  • After selecting and implementing the decisions they performance has to be monitored in the same way

  • The new performance indicators could be compared with the previous period

  • If necessary, corrective action plans could be taken


  • Login