Private Sector, Technology

  • Journey/ Challenge

The company had minimal budgeting efforts and it was unable to determine the man-day cost and the rate to charge to ensure achieving net profit. Thus, a Budgeting Exercise was implemented to set a costing model.

 

  • Project Objectives

To calculate the man-day cost and the associated price to achieve certain net profit

  • Approach

Business Assessment to understand the areas that need development. Bill quick workshop: Full orientation on the use of bill quick Breakeven Analysis: Calculating the man-day cost Calculating the allocation rate. Calculating the amount of sales required to reach the desired after-tax net profit Budget Workshop: Budget process presentation. Classifying types of business cost. Forecast methods.

  • Outcome

Understanding the importance of the budget exercise and the Ability to classify the different types of business cost. Understand the forecasts methods. Calculating the man-day cost and the price to charge. Using breakeven analysis to determine the volume of sales to reach certain after-tax net profit. Ability to start utilizing the Billquick software.

Deliverables:

    • Budgeting Process
    • Breakeven Model
    • Breakeven presentation