Our Services:
- ABC costing
- Product costing
- Distribution channel costing
- ABC costing
- Product costing
- Distribution channel costing
Costing and resources reallocation
LUV Microfinance can make a detail costs analysis at institutional level in a specific area or process. The recommended methodology is ABC costing (activity based costing). This cost methodology has the advantage of using allocation criteria that are directly related to the activities, which allows among other things a:
- Resources reallocation
- Processes optimization
- Benchmark definition inside the institution
- Determination of a minimum interest rate to be charged to a product
- Determination of most profitable client segments
- Processes optimization
- Benchmark definition inside the institution
- Determination of a minimum interest rate to be charged to a product
- Determination of most profitable client segments
In case that an ABC system implementation could seems to be too sophisticated for a first stage, there are others intermediate solutions, less accurate but more simple to be implemented, that can also help to understand the cost composition of different products or distribution channels.
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