How to Derive Overhead Cost from a P&L?

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S. Ris
Financial Consultant, Netherlands
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? (...) Read more? Sign up for free

  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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