Join Rudolph Rosenberg for an in-depth discussion in this video Finding the data points, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…In this case, we have actually already done the work.…In the chapter on gross margin we listed all of the costs of the company and…split them into five different categories.…The data we will be analyzing in this chapter is made from two of…those categories.…The categories we will be analyzing here are expenses and cost/expenses.…For costs/expenses,…we will be taking the portion of it which does not relate to production activities.…The only formatting we will be doing is to categorize the expenses by families,…which will then make our life easier when we will start analyzing the data.…
Those categories are the following, sales and marketing.…This category covers all the cost that directly relate to…the generation of revenue.…In this category you have the wages of sales reps if you…have any as well as the costs of your marketing and advertising programs.…Nonsales staff, this category includes the salaries of any person working for…the company who is not in the sales role, as the name says.…There are people in HR, Marketing, Finance, Facilities.…
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