General Overhead Expense

The sum of the total product expense and the general overhead expense is the total operating expense. This item ultimately becomes part of the operating expense on the income statement. 

Fixed capital investment Working capital requirements Total capital investment Total manufacturing expense Packaging and in-plant expense Total product expense General overhead expense Total operating expense Marketing data Cash flow analysis Project profitability Sensitivity analysis Uncertainty analysis... 

Other templates may be prepared for total capital investment, working capital, total product expense, general overhead expense, and casn flow. Table 9-29 may be used to organize cash flow data by showing investment, operating expenses, cash flow, and cumulative cash flow. 

Total operating expense is the sum of the total product expense and the general overhead expense. 

Plant indirect expenses—3% of the fixed capital investment per year General overhead expense—6% of the annual net sales... 

Actual operating expense reports, given in Table 16.10, form the basis for information needed for the income statement. Table 16.8, such as the cost of goods sold, depreciation, amortization and depletion, and general overhead expense. This information would be used in the quantitative measures of financial attractiveness. 

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