Expertise in Financial Reporting, Accounting, & Internal Controls
Case Study - Special Projects - Standard Costing
- Recommended implementing a standard costing model for valuing inventory;
- Evaluated the pros and cons of the decision to move to standard costing with the company's management;
- Revised the general ledger and chart of accounts to support a standard costing system;
- Developed a bill of materials containing the components used in the company's revenue generating activities;
- Implemented standard costing procedures within the company's accounting system;
- Developed process and closing checklists to ensure accurate accounting;
- Monitored financial results to identify necessary changes to the bill of materials; and,
- Customized managerial reports to identify variances due to production volume, pricing, etc.
Issue - A company with high-dollar, low-volume revenue transactions was experiencing wide swings in their gross margin results as costs frequently did not match to the period of revenue recognition.
Actions -
Outcome - Management is now able to analyze more informative margins on each of its service offerings and has revised its pricing based on these results. Variance and production input reports provide vital information to control costs and identify issues on a timely basis. A secondary benefit of the change was that the company's balance sheet has improved as a significant amount of production materials that had previously been expensed now reside on the company's balance sheet in inventory.
