When a fast-growing manufacturing company expanded with several new production lines, its longstanding overhead allocation and costing model no longer matched actual operations. This misalignment caused inaccurate product margin reporting, limited visibility into cost drivers, and risked suboptimal business decisions. The company engaged Meaden & Moore’s Audit and Advisory team to evaluate and redesign its costing processes. Our cross-office project team delivered actionable insights, a modernized costing model, and operational guidance—helping leadership make confident, data-driven decisions and optimize production planning.

In this success story, we go over:

• Modernized Overhead Allocation: Redesigned the company’s overhead absorption methodology to reflect current operations, improving accuracy in product-level margin reporting.
  
  
• Comprehensive Workflow Review: Examined financial and operational processes to uncover inefficiencies and hidden cost drivers.
  
  
• Accurate Margin Analysis: Implemented an updated costing model enabling precise margin calculations, supporting better pricing and strategic decisions.
  
  
• Optimized Production Planning: Provided actionable recommendations that align production schedules and resources with real operational costs.

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