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ideal percentage of various expenses

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(Querist)
12 November 2010 Dear Sir/Madam,

Is there any formula to know the ideal percentage of expenses in a manufacturing unit.

I think it should be based on manufacturing qty. for direct expenses and on sales for indirect expenses.

For major expenses like labour, power etc. can you suggest ideal percentage.

Kindly help.

Thanks,
Regards,
Rajesh Kumar
e-mail : rajeshjagadhri@gmail.com
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Khyati Parekh

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Khyati Parekh (Expert)
12 November 2010 In manufacturing unit direct expenses are based on unit to be manufactured...i.e.Labour required for per unit of product or power required to manufacture one unit of product...and ideal percentage or per unit cost is as per industry standard...
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Khyati Parekh

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Khyati Parekh (Expert)
12 November 2010 In manufacturing unit direct expenses are based on unit to be manufactured...i.e.Labour required for per unit of product or power required to manufacture one unit of product...and ideal percentage or per unit cost is as per industry standard...
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
13 November 2010 Cost estimate is based on various norms, technology, industry, capacity, etc. So it is very difficult to give a general answer to these type of question.
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
13 November 2010 It is not possible to give a general answer and would differ from industry to industry and from individual company to company also.
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