ideal percentage of various expenses
This query is : Resolved
RAJESH KUMAR
(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
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
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...
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...
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.
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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