A small project driven manufacturing company relied on the efforts of project managers, competent in their fields. Maintaining controls on costs was difficult since an understanding of simple accounting concepts such as direct and indirect costs was absent.
Actions
Since a new ERP system was being implemented, a training movie with supplementary practice was developed, that enabled everyone in the company to assign account numbers to purchases correctly.
Result
The result was a reliable gross margin percentage number, better project costing and estimating, and the opportunity to use better financial performance measures.
