The article discusses how a rubberised coir mattress company improved its competitiveness by reducing production costs. They found problems in their costing system and developed a new model based on Activity Based Costing. By using actual cost data, they calculated the production cost of different mattress models. The new system showed that the production costs of selected models were 18%, 19%, and 34% lower than before. This led to an annual reduction of 3.07 Cr in production costs for these models.