Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Cost analytics

nisha (abc) (27 Points)

22 May 2010

can anyone plz help me wid analysing operating expenses like repairs and maintenance, AMC of fixed assets?? as in what can be the cost drivers n how to proceed with the analysis with those drivers?? i wana analyse as to what can be the cost optimisation techniques and what are the factors due to which cost arises.. can anyone throw some light on it as to how to do it and also what can be the questionnaire related to costs which i can ask the concerned user heads.. its really urgent :(

Reply
Follow
Share

1 Replies

CA Amit Kumar Khaitan (Research Analyst) (360 Points)
Replied 28 May 2010

First you should prepare an ARP.. i.e simply see whether the expenses are in normal limits wrt the Sales/ Production etc as the case may be..

Then start off by analyzing the abnormal costs...

try to find all factors that can act as cost drivers... if there is a costing department, try getting data for 2-3 periods and try to come down to lesser possible cost drivers options

An Excel sheet will b of great help..

Cost optimization would mean cutting out the unnecessary expenses.. just keep an eye on the number of breakdowns... their intervals... the standard data on the same.. etc... you get to know where to go.. once you have started in the right direction....