Expenses as Percentages of Net Sales

Computations

Expenses

This calculates expenses as a percentage of net sales. When the Total Income and Expenses section of page 2 of the Operating Report is prepared, percentages of net sales are computed for overhead expenses and for related totals and subtotals. This example calculates the owner’s salary as a percentage of net sales.

Example:

	Year-to-Date
Salaries-Owners Account 020, Salaries – Owners / Executive Managers	$57,000
Divided by:	/
Net Sales	$8,950,000
(Salaries – Owners) Expense as a Percentage of Net Sales	0.64%