How to Derive Overhead Cost from a P&L?




Activity Based Costing
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S. Ris
Financial Consultant, Netherlands

How to Derive Overhead Cost from a P&L?

Hello reader, I'm trying to decompose the overhead of a company through its Profit and Loss account. I have calculated for my self what their overhead should be and I'd like to compare this with their real time data.
It is a normal P&L with revenues, costs, subsidiary cost and interest. Could someone help me figure out how to do this?
 
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DEON STALS
Management Consultant, South Africa
 

How to Decompose He Overhead of Company Through the P&L Account

Good day S Ris,
You need to get the make up of each overhead amount in the P&L account from the detailed Trial Balance and how the Trial Balance amounts were allocated to each P&L overhead amount. Normally companies have detailed working schedules and reconciliations of each P&L overhead amount tying up to the detailed Trial Balance. Hope this helps you in your overhead decomposing process. Good luck and best regards.

   

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