Typically,
departmental Expenses are shown as a monetary value and in order for
you to capture meaningful trend analysis you will need to express them
as a percentage of departmental Gross Profit.
Example:
A) Departmental Expenses = R13,524 D) Total Turnover = R187,836 E) Departmental Expense % = 7.2% (A ÷ B X 100)
Discussion:
Related Terminology:
The
Departmental Expenses of the Parts Department are also know as Direct
Expenses and refer to the total expenses incurred. As there are no Variable Expenses within the Parts Department, all expenses are therefore Semi-Fixed.