COST MODEL DESIGN
Define cost objects, drivers, allocation logic and reconciliation controls.
COST & PROFITABILITY ANALYSISRevenue shows what you sold.
Revenue shows what you sold.
Profitability shows what was worth selling.
See what creates margin—and what absorbs it.
Build transparent cost and profitability models that connect materials, labour, overheads, processes, prices and mix to unit cost, contribution margin and business performance.
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.
PRODUCT & UNIT COSTING
Trace how materials, labour, overheads and production stages form unit cost.
PRODUCT & CUSTOMER PROFITABILITY
Measure contribution across products, customers, channels and business units.
MARGIN BRIDGE & VARIANCE ANALYSIS
Explain how price, volume, mix, input costs and efficiency change margin.
PROFITABILITY SCENARIOS
Test pricing, sourcing, production and portfolio decisions before execution.
RECURRING COST CONTROL
Monitor cost drivers, variances and profitability through a repeatable process.
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 & PROFITABILITY ANALYSIS
Know where value is created—and where margin is lost.
Build a transparent profitability model for pricing, portfolio and cost decisions.