Accountability

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The highly competitive global business environment creates unrelenting pressure toward increased efficiency and cost reduction. For several years now, organizations have been paying closer attention to performance measures, prized for their usefulness in decision-making and accountability.

With the Decimal Suite, accountability becomes easy to understand and effective in the sense that is generates valuable decision-making information. For example, the Suite can help managers identify the areas that would truly benefit from an optimization or process improvement program. Once the improvement programs are implemented, it is easy to gauge their success at improving the processes and activities of the targeted sectors. Because results based on cause-effect relationships are easy to explain, they promote transparent management, as managers more readily grasp the impact of their decisions.

It is also easier for managers to understand where they fit in the value chain and the impact their sector has on other aspects of the organization. Many managers have indicated that one of the unexpected benefits of the costing process is that they can more easily explain what a given sector does and where the resources are concentrated.

With their improved understanding of cost behaviour, managers are better able to set priorities and deploy resources to have the greatest possible impact on results.

Types of analysis that facilitate accountability:

 

  • Account variance analysis of budgets and standards
  • Cost variance analysis of activities
  • Cost variance analysis of products/services
  • Cost variance analysis of clients
  • Assessment of goal achievement for improvement projects
  • Comparison of activity, product, service and client-related costs over time
  • Drill-down cost analysis


Download the Planning and Budgeting brochure