JK SecuriTech models the cost structure of a business to identify the primary cost centers of the business through a simplified Profit and Loss financial statement. The basic structure of this simplified P & L is:

Gross Revenue
-Material costs
---------------------
Net Revenue
-"Fixed" costs
----------------------
Available Revenues
- Costs associated with producing products
----------------------
Net Income

"Material" costs are a transfer payment between the customer and the suppliers to the business. Material costs must be continually decreased as a percentage of Gross Revenue.

"Fixed" costs are the costs that would be incurred whether the business is a manufacturer or a product "broker". Fixed costs must be continually decreased as a percentage of Net Revenue.

"Costs associated with producing products" are the costs of the value producing function of the business. CAPP costs must be continually decreased as a percentage of Net Revenue.

"Net Income" is the amount of money available for investment and profits for a given level of Material, Fixed, and CAPP costs.

By modeling the transfer costs, fixed costs, and value producing costs of a business, JK SecuriTech helps its clients understand their true cost structure. Additional revenue and cost modeling allows JKS to help clients understand the impact of revenue maximizing, through-put based business models; cost minimizing production models; and the potential impact of Supply Chain development and integration on Net Income.

Through Investment Scenario Modeling, JKS also helps client companies forecast the cost reduction or value producing impact of an investment, which becomes the basis for Return on Investment analysis.

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