Join Rudolph Rosenberg for an in-depth discussion in this video Preparing the data, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…Now that we have gathered all the costs related to the production of goods,…we need to put them in form.…To do so, let me first explain what we aim to do with those costs, and…you will quickly get how we need to prepare the data.…We have here a number of costs which are very different in nature, and…we can put them into five categories.…Direct product costs.…Plastic is a good example here of a raw material that is present in most,…if not all, pens.…
It is called direct cost due to the fact that it…is an element of the product itself.…Indirect product costs, such as factory errands, labor cost,…utilities, and every other cost of operating a factory for example.…Services costs, such as consulting services for example.…In this category we put the salaries of consultants as well as their travel and…incidental expenses.…For our web design company for…example, you would put here the salaries of web designers.…
Expenses, those are costs that are not related to production such as office rent,…salaries of employees that do not work on production, or rendering a service such as…
Also check out the companion course, Financial Analysis: Analyzing the Top Line with Excel.
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Finding data points
- Prepping data
- Calculating standard cost and gross margins
- Analyzing overall gross margin performance
- Analyzing individual and overall expenses