Join Rudolph Rosenberg for an in-depth discussion in this video Categorizing expenditures, part of Financial Analysis: Analyzing the Bottom Line with Excel.
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…So, to start categorizing your costs,…you first need to list them all in the database format.…To do so, just take all the invoices you have received from vendors and…take them down, as shown here.…For example, this first invoice is for $500 for an airfare from Vendor01.…So, what we need to do here is put an extra column,…in which we put the category of each of those costs.…So let's go here to column K and put down cost category for the column.…
Then, let's categorize them one by one.…So the first one is a travel.…That's an expense.…The second one is a salary.…And Susan, I know she works in sales.…So, I'll just put expense here.…Kevin, on the contrary, works in production, so…his salary is an indirect cost.…Then we have office rent.…That's an expense.…Utilities, such as electricity are both cost and expense, so…I'll put cost slash expense here.…Plastic, as we've seen is a direct multiproduct cost because it is used for…the production of more than one product.…
Wood, on the other hand, is a material that's used only for one product.…
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