Lorna Grace

By Lorna Grace

Research

Microfinance Product Costing Tool

CGAP developed and field tested an activity-based costing tool to help MFI managers understand and analyze individual product costs, especially administrative/organizational costs. Once a product's costs are determined, the tool suggests methods for understanding why and how the costs were incurred and how the product contributes (or not) to the overall financial viability of the MFI.