Standard costing is the single most neglected financial control mechanism in manufacturing. Most companies between $5M and $250M in revenue have never built a proper standard costing system — and they are paying for that gap in ways that rarely show up as a line item.
Without standard costs, your gross margin figures are estimates. Your pricing is based on assumptions rather than validated cost data. Overhead is pooled in ways that hide which products, plants, or divisions are actually contributing — and which are being subsidized. Variance analysis is impossible because there is no standard to compare against.
The result is a business that looks profitable at the top line but cannot explain where the margin went, cannot price confidently, and cannot give leadership — or investors — a trustworthy picture of operational performance.
What Anthony Builds
Anthony Pichelli has spent 30+ years implementing standard costing systems in manufacturing environments. His work connects raw material costs, labor standards, and overhead allocation into a coherent cost model that gives plant leadership and executive management the visibility they need to make decisions based on reality — not assumptions.