BUDGET REVIEW

Overview

Ideally a budget should significantly mirror the actual financial performance of a business. All budget input should be set as realistically as possible.

It is imperative that the budgeted production hours are calculated realistically as possible, so that over a 12 month period the "resultant" standard labour and overhead hourly rates will not cause a substantial over/or under costing of products or services.

How can profitable selling prices be set (to satisfy necessary gross profit margin percentage and sales volume requirements) when the standard costs are not correct? Having accurate knowledge of standard costs is just so vital to making the right pricing strategy happen!

What We Do

• Set a realistic budget, including budgeted production hours to be worked for the year.
• Set realistic standard labour and overhead rates.
• Ensure that the actual direct production costs are being recovered by all the standard costs.
• Check that the production times set for each of the product/services are realistic.

Your Results

Boardroom Innovations will ensure that:

• A realistic budget has been set.
• Factory hours to be worked for the year have been calculated to a realistic level.
• The labour and overhead rates will recover all actual direct production costs.