Costing for MUNICIPALITIES

It is widely known that:

  • “What is not measured is not managed”

BENEFITS

With the Costing of municipal services:

  • The cost of providing all the Municipality's services is standardised
  • The actual cost is calculated
  • It is compared with the actual cost from the accounts
  • The variances are analysed and interpreted
  • Cost reduction solutions are proposed

As a result:

  • The Municipal authority is able to take decisions on reducing the cost of the services provided to Residents and of the Municipality as a whole
  • The allocation of resources is rationalised
  • Help for the Municipal authority towards better organisation and management, given that "cost is the main means of exercising effective management"

Depending on the circumstances, Standard Cost and ABC Costing are used, also in combination

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