Product Costing: Your Foundation for Profit
In a competitive market, you cannot afford to price based on a guess. We use proven accounting standards to reveal the "True Cost" of every unit you produce, ensuring your business never sells at a hidden loss.
Why, When & Where is it done?
- Why : To stop "profit leakages" from under-priced items and focus your energy on the products that actually drive wealth. It helps you identify which products are your "stars" and which ones are "drains."
- When: Critical when launching new items, entering new markets, during annual budgeting, or when your supplier prices fluctuate significantly.
- Where: We work directly with your production data, factory records, and supply chain invoices to ensure 100% accuracy.
- What is it Done: A systematic deep-dive into direct costs (Material/Labor) and indirect costs (Power/Rent/Admin) to find the "landed cost" of a product.
Applicability Limits (The Numbers)
Sectors
Any manufacturing or service entity with an overall turnover of ₹1 Crore or more.
Product Variety
Businesses managing 5 or more different product lines or variants where manual calculation is prone to error.
Contractual Bidding
Any firm where a 1% to 2% margin difference determines the winner of a contract.
How we provide this service at Diwakar and Associates
We transition your business from "estimates" to "evidence" through a detailed four-stage journey:
1
BOM Forensic Audit
We verify your Bill of Materials (BOM) to ensure every milligram of material and every second of labor is accounted for.
2
Strategic Overhead Allocation
We use Activity-Based Costing (ABC) to ensure that rent, power, and administrative costs are shared fairly and accurately, rather than using arbitrary percentages.
3
Pricing Strategy Design
We don't just give you a cost; we help you choose the best pricing model—whether it is Cost-Plus, Value-Based, or Target Costing—to hit your ROI goals.
4
Variance Analysis
We compare what you "should" be spending against your "actual" spending to find immediate savings and eliminate waste.
The Impact
We measure and optimize the extent to which your company uses its installed productive power.
Our Commitment to You
Accuracy is the cornerstone of our practice. At Diwakar and Associates, we commit to making your assets work as hard as you do. We promise to identify the exact "profit-leakages" caused by idle time and bottlenecks that are currently invisible to the untrained eye. Our goal is to move your operations from average to world-class, ensuring every machine and every hour on your shop floor is contributing directly to your bottom line.
Need Expert Capacity Utilisation Support?
Get professional guidance to ensure compliance and improve cost efficiency.
Request Consultation