Compare FullCost functionality to the requirements of cost modeling....

FullCost software meets all of the absolute requirements of every level of cost modeling:

• Integrated business planning, budgeting, and rate-setting process (all levels)

• Fully documented, participative method (all levels)

• Ability to model project teams as internal "prime-" and "subcontractors" -- linking their contributions to the total cost of a product or service (all levels)

• Differentiation of corporate-good activities and internal investments from clients' products/services (all levels)

• Algorithm to apply incremental costs consistently to all clients when overflow work goes to contractors or vendors

• Recognize full compensation costs: payroll, benefits, cost-ofliving increase, bonus pool, perquisites, and raises (all levels)

• Ability to distinguish capital and expense budgets, while planning them in an integrated process (all levels)

• Reporting for internal scrutiny of costs, management metrics (eg P&L, product management), presentations to clients, CFO, CEO (summaries by client, strategy, product set) (all levels)

• Ability to upload data into tracking systems (all levels)

• Scalable budget granularity, from one per manager (Levels 1-3) to one per line of business under each manager (Levels 4,5)

• Scalable "client" specificity, from one generic client (Level 1), to multi-tiered business units with a few consortia (Level 2), to business units with consortia for every multi-client purchase

• Scalable staffing algorithm, from current headcount (Levels 1-2), to headcount forecast based on planned products/services

• Flexible algorithm for amortizing external indirect costs to all products/services in a group (Level 1,2), specific products/services in a group (Levels 3-5), all groups in a common line of business (Levels 4,5), or all groups as overhead (all levels)

• Flexible algorithm for applying internal support services to an entire group (levels 1,2), specific products/services in a group (Levels 3-5), all groups in a common line of business (Levels 4,5), or all groups as overhead (all levels)

• Flexible selection of units for rates, which are used for allocation formulas (Levels 2-4), forecasting volumes (Levels 3,4), and rate sheets

• Ability to exclude direct costs in some cases, exclude subcontractors in some cases (Level 5)

• Ability to analyze billable-time ratios (optional Levels 1,2, mandatory Levels 4,5)

FullCost software also fulfills all the optional requirements:

• Ability to summarize data by checkbook and corporate strategy (optional Levels 1,2, advisable Levels 3-5)

• Ability to summarize data by priority and product set (Levels 3-5)

• Ability to split labor costs by skill, level of competency (all levels)

• Headcount/compensation summaries: multiple categories of employees/contractors (all levels)

• Ability to capitalize some labor costs (all levels)

• Ability to plan revenues; forecast profit/loss on fixed-price contracts and pre-set prices (all levels)

• International currency conversion (all levels)

• Ability to specify timing of costs during year for upload (all levels)

FullCost can be implemented at any level, and then grow with you as you progress to greater granularity and accuracy. This allows many of the benefits to be quickly and readily attained, and then more benefits can be realized in subsequent years as the process evolves. And since all the levels utilize exactly the same software, your investment of both time and money is protected.

Levels of Cost Modeling

Level 1: TRANSPARENCY

Level 2: FAIR ALLOCATIONS

Level 3: DEMAND MANAGEMENT

Level 4: ACCURACY

Level 5: RATES