EXPENSE DISTRIBUTION CHART
23. To present a graphic record of expense distribution, the chart, Fig. 8, is used. This chart separates commercial and manufacturing expense, showing amounts, while Fig. 7 shows to which branch each item belongs.
This chart subdivides commercial expense into executive, accounting, office, sales, and credits and collections, showing totals for each and for the entire commercial branch. Manufacturing expense is subdivided into executive, accounting, purchasing, engineering, and shops and equipment.
A comparison of these statements from month to month will show just what every item is and indicate the slightest increase in any class of expense. Similar charts can be readily prepared for any business, segregating expenditures of each branch, division, or department.
The distribution will naturally vary in different businesses and, before this chart can be prepared, the exact distribution must be determined. In this chart, packing and shipping is included as a commercial expense, while, as stated previously, in some businesses it would be a manufacturing expense. All such questions must be decided before the chart is prepared.
Fig. 7. This Shows How Salaries and Wages are Apportioned to the Two Principal Divisions of a Business
Fig. 8. This Chart of Expense Distribution Shows the Amount of Executive and Administrative Salaries, and Expense of Every Class, and Their Correct Apportionment