Square Root Costing - A Faster Alternative to ABC

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We have the analytics to get you the answers fast—much faster than Activity-Based Costing. At MillerCoors we recently determined the cost and profitability of their 1700 products, across all nine breweries, in just SIX WEEKS, and down to the operating profit level. Our unique Square-Root Costing methodology is a fast and practical way to determine the actual cost and profit of your products, services, customers, segments, channels, or facilities. We have applied it at numerous companies across many industries, and most recently at MillerCoors. The implications for companies are significantOur clients discovered products that were much more profitable than they had thought, and therefore warranted greater resource and investment, while other products, perceived as profitable, were losing money on every sale. What would you do differently if you found this out about your products and services? Find out how we can help you and learn more about our powerful costing methodology. Wilson Perumal & Company is a premier management consulting firm and the leading advisor to companies on how to compete in today's complex world. Do you know which of your products are truly profitable? And if you did, how would it change your business? “This was a quick and painless way to understand our true product cost and profitability, and it challenges how we think about our business. I am extremely pleased with the results.” – Fernando Palacios, EVP & Chief Integrated Supply Chain Officer MillerCoors LLC WP &C Wilson Perumal & Company Wilson Perumal & Company, Inc. Two Galleria Tower 13455 Noel Road, Suite 1000 Dallas, TX 75240 +1-972-716-3930 tel Wilson Perumal & Company, Ltd. Longcroft House 2/8 Victoria Avenue London, EC2M 4NS United Kingdom +44 (0)203 206 1496 tel Contact Us

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Do you know which of your products are truly profitable? If you did, how would it change your business?

Transcript of Square Root Costing - A Faster Alternative to ABC

Page 1: Square Root Costing - A Faster Alternative to ABC

We have the analytics to get you the answers fast—much faster than

Activity-Based Costing. At MillerCoors we recently determined the cost

and pro�tability of their 1700 products, across all nine breweries, in just

SIX WEEKS, and down to the operating pro�t level.

Our unique Square-Root Costing methodology is a fast and practical way to

determine the actual cost and pro�t of your products, services, customers,

segments, channels, or facilities.  We have applied it at numerous companies

across many industries, and most recently at MillerCoors. The implications for

companies are significant. Our clients discovered products that were much

more pro�table than they had thought, and therefore warranted greater resource

and investment, while other products, perceived as pro�table, were losing money

on every sale.  What would you do differently if you found this out about

your products and services?

Find out how we can help you and learn more about our powerful costing methodology.

Wilson Perumal & Company is a premier management consulting �rm and the leading advisor to companies on how to compete in today's complex world.

Do you know which

of your products

are truly profitable?

And if you did,

how would it change

your business?

““This was a quick and painless way to understand our true product cost and profitability, and it challenges how we think about our business. I am extremely pleased with the results.”

– Fernando Palacios, EVP & Chief Integrated Supply Chain Officer

MillerCoors LLC

WP&C

Wilson Perumal& Company

Wilson Perumal & Company, Inc.Two Galleria Tower13455 Noel Road, Suite 1000Dallas, TX 75240+1-972-716-3930 tel

Wilson Perumal & Company, Ltd.Longcroft House 2/8 Victoria AvenueLondon, EC2M 4NSUnited Kingdom+44 (0)203 206 1496 tel

Contact Us