Cost models

Cost allocation models are one of the most effective, yet often underestimated, controlling tools. They are used not only as a source of accounting input, but also as tools to manage resources and processes, create optimal pricing policy, build cost optimisation plans, monitor effectiveness of investment and projects, design motivational schemes and provide data input for them, manage production, HR or IT costs and respond to changes in regulatory environment. 

At Gekko advisoryNOW we provide our Clients with effective cost models and as a result, with new management tools. Our expertise covers among others:

  • Designing of cost models concept (structures, allocations and cost allocation drivers),
  • Support in IT tool selection and supervision of implementation,
  • Creation of cost allocation models for management, regulatory and transfer pricing purposes,
  • Defining and calculating costs of activities and resources,
  • Implementation of time-driven ABC (activity-based costing) and resource consumption accounting models,
  •  Calculating cost of unused resources
  • Calculating cost of products, services, clients and distribution channels,
  • Profitability analysis,
  • Cost models reviews and optimization conducted on demand of regulatory bodies and for internal purposes.

Solutions implemented by Gekko advisoryNOW consultants will not only allow to determine real profitability of products, services, customers or distribution channels, but also help in better understanding of the nature of costs in the organisation and in consequence to manage them better.