Have you ever heard of VolareWeb , the airline bankrupt long ago?
know why 'and' failure? Why
' NOT had never done a proper management control over their cost!
VolareWeb , like thousands of other Italian companies had made their own decisions (wrong) based only on data from the General Ledger, such as:
- Turnover
- variable costs (eg raw materials, machining external, etc.).
- fixed costs (eg personnel, rent, depreciation, taxes, etc.).
- Profit / loss for the year, etc. ..
- 92% of entrepreneurs do not know calculate their production costs
- 94% of entrepreneurs do not know correctly determine the break even point of your company
- 97% of NOT entrepreneurs can calculate the exact incidence of costs on the final price
with management control fact, you can 'for example ...
- Increasing profits without increasing sales
- know exactly why ' there' was a gain or loss
- Discover which are products / customers that contribute more ' or less, the profit or loss for the period
- Calculate the cost of raw materials and outsourcing for each product line
- calculated correctly ' incidence design costs
- know exactly what the direct labor costs for each product line
- Compare actual data with those of budget and much more (ie break even point, etc.. )
