What are Overhead Costs, or Fixed Costs? They are the costs in your business that do not change directly with a change in your Revenue and/or a change in your Cost of Goods Sold. The cost of Labour, excluding casual, is one of the largest Fixed Cost in most businesses. Are you finding that you lose track of staff costs? Use the Labour Efficiency Ratio as an early warning alert if wages are moving in the wrong direction. Other costs include rent, insurance, interest, administration costs and some elements of the sales process. Use the Overhead Margin Analysis to check on the efficiencies and productivity of the costs. Use 12Faces articles to improve, optimise and monitor these costs.
14Aug
Overhead Margin Analysis Explained
Overhead Margin relates to Overhead Costs, which are the costs in your business that do not change directly with a change in your Revenue and/or a change in your Cost of Goods Sold (COGS). They include such things as: Rent, insurance. Interest. Salaries of permanent staff. Administration costs in general; telephone, office costs. Some elements of the...