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Income statement example & metrics

Income statement example & metrics - Income...

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Income Statement Example and Metrics Create an Income Statement from the Annual Projections below of Revenues and Costs. 1. Compute the per unit cost of each expense item 2. Classify each expense item as Direct or Indirect. 3. Organize the data per the Income Statement template on D2L 4. Compute Common Income Statement Metrics per the Income Statement Metrics slide on D2L 1. & 2. Direct or Variable or Cost of Goods Sold (COGS) are expenses that vary directly with numbers of Product sold. Direct Expenses are usually expressed as $ / Unit Indirect or Fixed or Overhead or Selling, General & Administrative (SG&A) expenses are all expenses not included above. Indirect Expenses are usually expressed as $ / unit time (e.g. $/Month) Some expense items (e.g. Utilities) could be classified Direct and/or Indirect. This example assumes that the utility expense is not directly related to the number of parts manufactured. If an additional expense is incurred to produce 1 additional product, the cost item is a Direct Cost.
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