Working notes on the things that decide whether a set of management accounts can be trusted: variance decomposition, product costing, inventory valuation, and consolidation across entities and currencies. Written for controllers and group accountants, not for a search engine.
Setting standards that survive contact with the shop floor, and separating purchase price variance, material usage variance and overhead absorption so each one has an owner. With a worked example of 10 variances that sum to the last rupee.
Read the article →What a group of 5 companies actually needs to consolidate a budget and an actual, why the exchange rate belongs on its own line, and why the answer is rarely a new ERP.
Read the article →Moving average against FIFO, what lot traceability should and should not change, landed cost, the timing traps, and how a valuation method quietly decides what your gross margin looks like.
Read the article →Budget said 650,000. Actual came in at 570,500. A profit bridge splits that 79,500 gap into volume, mix, price, cost and exchange rate, with no residual bucket. Includes a worked example that ties to the last unit, and the mix mistake almost everybody makes.
Read the article →Two analysts can decompose the same margin gap and both be right. The full method: where the joint variance belongs, mix at constant volume, new and discontinued products, the exchange rate, and what changes across thousands of lines.
Read the article →A short conversation is enough to tell whether a costing framework would help your business.
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