COST MODELS
Build transparent cost models that show how resources, processes and allocations become unit cost.
COST & MARGIN MANAGEMENTRevenue tells you what you sold.
Revenue tells you what you sold.
Margin tells you what was worth selling.
Profitability is an outcome. Understand what drives it.
Build a clear view of cost and profitability — across products, customers, processes and business units — and understand what actually creates or destroys value.
BUSINESS ECONOMICS
Illustrative dataProfitability Overview
Gross Margin38.4%+2.1 pts
Contribution Margin24.7%+1.3 pts
Operating Margin13.2%+0.8 pts
Unit Cost€18.40−4.6%
Products
Product Profitability
Alpha31%
Beta22%
Gamma16%
Margin Movement
Margin Variance Analysis
RevenueCOGSGross ProfitOpexEBIT
Cost Drivers
Cost Structure
Materials46%
Labour28%
Overheads18%
Value Creation
Contribution Analysis
ABCD
Know the cost.
Understand the economics behind it.
PROFITABILITY ANALYSIS
See profitability across products, customers, processes and business units.
COST DRIVERS
Identify the operational and financial factors that actually move cost and margin.
MARGIN ANALYSIS
Trace gross, contribution and operating margins — and understand what changes them.
SCENARIO MODELLING
Test how price, volume, input costs and product mix change profitability.
AUTOMATION & AI
Automate cost calculations, variance detection and profitability analysis where it improves speed and control.
Follow the cost until you find the margin.
- 01
DIAGNOSE
We trace how costs are created, allocated and reflected in current profitability reporting.
- 02
MODEL
We define cost drivers, allocation logic and profitability dimensions around the economics of the business.
- 03
IMPLEMENT
We connect the model to financial and operational data and build the required calculations and analysis.
- 04
CONTROL
We establish recurring variance, margin and profitability analysis as part of the management process.
Know what makes money.
Know what doesn't.
TRANSPARENT COST
See how materials, labour, overheads and processes build the true economics of a product or service.
PROFITABILITY BY DIMENSION
Analyse contribution across products, customers, processes and business units.
BETTER COMMERCIAL DECISIONS
Give pricing, product mix and cost decisions a consistent economic basis.
CONTINUOUS CONTROL
See how cost drivers and variances change financial performance over time.
When does profitability become difficult to see?
If you know the total profit but not where it came from, you don't yet have profitability visibility.
COMPLEX PRODUCTION
When multiple stages, materials and allocation layers make true product cost difficult to trace.
BROAD PRODUCT PORTFOLIOS
When aggregate profitability hides large differences between products or customers.
GROWING BUSINESSES
When increasing complexity makes simple costing and margin analysis unreliable.
MULTI-ENTITY GROUPS
When profitability needs to be understood across companies, business lines and shared resources.
Related services
COST & MARGIN MANAGEMENTYou know the profit.
You know the profit.
Now find out what created it.
Build a cost and margin model that shows where value is created, where profitability is lost and what management can do about it.