Cost analysis is a comparison of costs. Costs used to prepare financial statements are not the same as those used to control operations. Costs may be controllable or non-controllable and are subject to time periods and constraints. For example, controllable costs are those the manager may authorize. However, costs that may be able to be controlled over the long-term, may not be controllable in the short-term. Costs can also be fixed and variable. Financiers and economists understand how important it is to analyze costs according to different criteria. The timely analysis enables you to make the right decisions to reduce costs. For example, you can divide the costs of products into groups by activity. Then, in each group, describe the cost items in detail. This will allow you to find the most expensive items and identify ways to reduce the cost of these operations.
The Cost Analysis template is designed to visualize complex financial calculations. The first slide provides an opportunity to introduce cost optimization planning. You can specify planned costs and actual costs in the table, and specify cost overruns or savings. This slide makes it possible to classify costs into major groups. For example, the first group will include personnel costs, the second is the purchase of equipment and raw materials, and the third group is advertising costs. The slide will be useful for investment companies, startups, and entrepreneurs. The second slide provides an opportunity to present the company’s expenses and income by year. This slide can be used when preparing a business plan or analyzing the profitability of an existing project. The slide allows you to present basic financial data in a simple and understandable table for everyone. The next slide will be useful to all economists and purchasing managers. This slide allows you to graph tactical and strategic cost reduction activities. For example, a purchasing manager can prepare a list of activities that will reduce purchasing costs by reducing storage costs. A purchasing manager can also specify the criteria for the selection of the main suppliers and reduce their total number. This, in turn, will lead to an additional discount due to the volume of purchases. The last slide compares development costs, operating costs, and total costs. This slide has universal blocks and structure and can be used in your other presentations. For example, sales managers can use this slide when preparing a quotation. Team leaders can use the slide when planning weekly goals for their team.
Cost Analysis template contains modern solutions for the analysis of any type of cost. You can compare variable costs, which depend on the number of products produced, with fixed costs (building maintenance or land tax). This template is a must-have for economists and financiers. Also, this template will be useful for department heads when preparing the department’s budget for the year. If necessary, you can easily change the arrangement of graphs, text boxes, chart colors, and font sizes. Entrepreneurs can also use this template. For example, when preparing your business plan for a bank loan.