Costings
- How do the mark-ups utilised in your business compare to your competitors?
- Do you compare the gross profit percentage that you earn for various products to your competitors?
- Do you have an accurate time costing system?
- Do you accurately record all purchases and outlays for particular jobs?
- Have you considered alternative work practices such as the 5-s system? A structured systematic approach to housekeeping and the cornerstone of every world class manufacturing operation?
- Are you using a standard costing system? Have you recently reviewed the calculations of the various components of the standardised costing system?
- Do you calculate regularly (e.g. daily or weekly), labour productivity and communicate the productivity percentage achieved back to team members?
- If you utilise a work in progress job costing system, has management enquired as to why a job may have remained in the “work in progress” system for longer than other jobs? This may indicate that the responsible person does not wish to highlight problems within the job before finalising costings.
Business Plans – Some Questions to Consider
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This post is part of the 50-part series “Business Plans – Some Questions to Consider” (yes, there will be 50 of them!).
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Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
Twitter: @christielewis
