Regulatory and Management Accounting


Regulatory Accounting is the mechanism whereby the regulatory entity gets to know the cost structure of their providers, measures their relative efficiency at both company and activities levels, reduces information asymmetries in order to determine a fair and equitable tariff for the users.

Regulatory Accounting is usually oriented to Activities Based Costing or ABC Costing which, unlike conventional accounting, allows cost allocation taking into account the activities or processes that originated them. The Activities Based Costing system leads to an enhancement in cost management, by relying on more strict allegations.

Based on these concepts, both companies and regulatory entities benefit from knowing the true cost of their activities, guiding the provider to the path of efficiency and continuous improvement (Management Accounting).

Quantum has extensive experience in counseling linked to:
  • Regulatory Accounting implementation.
  • Activities Based Costing (ABC Costing)
  • Process analysis (ABM, Activity Based Management) “doing things right”. Definition and improvement of activities that add more value to the company
  • Budgeting for ABC (ABB Activity Based Budgeting).
  • Implementation of the Balanced Scorecard which allows real-time monitoring of the company´s efficiency and compare it according to the objectives set
  • Conducting benchmarking not only at business costs level, but also at key processes of different companies