Join Rudolph Rosenberg for an in-depth discussion in this video Analyzing general expenses, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…Once we have analyzed sales, marketing and personnel related expenses,…we are left with a bunch of other expenditures that can range from travel to…outsourced services, office-related expenses, really any other type of…expenditure that the company needs to make in order to operate on a day to day basis.…For each of those types of expenditures, the important point is to make sure it is…adequate to the level of business that the company does.…Let's take the example of travel costs.…
If we step back, there are two big families of travel within a company.…Travel to meet with customers, and…travel to meet with other stakeholders, such as other employees of the company.…Or partner companies.…You could argue that any trip with a purpose of meeting with…customers is worth maintaining since it holds the promise of potential business.…Travel that is not aimed at generating more business,…should be reviewed thoroughly to ensure it is really adding value to the company.…For the rest, whether those are attorney fees, office rent or any other cost for…
Also check out the companion course, Financial Analysis: Analyzing the Top Line with Excel.
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- Finding data points
- Prepping data
- Calculating standard cost and gross margins
- Analyzing overall gross margin performance
- Analyzing individual and overall expenses