on 10-09-2007 4:06 PM
Hi all,
Please can you tell me where I can find a source for best practice CO cost centres to set up for my client ? Would it be somewhere in ASAP for example?
Thanks very much..
Mike
Location and Functions can be a determining factor for justifying for creating exclusive cost centers.
The cost centers set up shall facilitate to serve the purpose of the main Tasks and Goals of Advanced Cost Management.
The following principles shall guide for setting up cost centers.
<b>Management Overhead Cost Transparency</b>
resource consumption through processes
parallel quantity and value flow
<b>Increasing Efficiency</b>
resource leverage in overhead areas
continuos efficiency control of internal processes
<b>Fair Cost Calculation</b>
source appropriate cost assignmentof internal activities
cost of complexity
cost of product and process change
<b>Information for Strategic Decision Making</b>
reduce overhead costthrough process optimisation
increase profitability throughidentification of non profitableproducts and customers
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Hi,
Check this site... you can get the best practices based on the industry as well as the country specific
Radha
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