Briefing Note 16 (Arabic) - Product Costing in Practice – The Experience of MicroSave

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

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