Where the money goes
The previous chapter examined spending on fixed assets. Now I want to talk about how you analyse all other expenditure and how you analyse, interpret, project and manage costs in general.
Seven ways of looking at costs
Production, trading, operating.
By category of product or service.
Geographic – by territory or region.
Functional – R & D, production, sales, etc.
Costs in the financials
There are many ways of categorizing spending; but, for basic analysis, approvals, and reporting, beanies carve up costs as follows: