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Product Costing - The Experience of MicroSave 

Author: Henry Sempangi, David Cracknell
Published: October 17, 2002


This note focuses on understanding of processes and costs structures which in turn facilitates improvements in efficiency and allows more informed pricing decisions to be made. It discusses activity based costing (ABC) at length and its significance for the MFIs such as reducing costs, redefining/rejecting loss making products etc. It also draws lessons from costing experience of MicroSave. The note recommends having management commitment, trained staff, careful background work and necessary resources in order conduct a successful costing exercise.

Tags: Microfinance , Costing and pricing , Allocation Costing , Activity based costing , Product costing , Action research , Financial products , Staff training , Resource management , MicroSave

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