Creating Divisional Budgets - Methods to Splitting Overhead

When creating Divisional Budgets (ie, for your Maintenance, Install, Snow divisions), there are three methods to consider when splitting your Overhead:

  • By Sales
  • By Time
  • By Analysis (recommended)

The table below outlines a brief description of how to use these methods along with their pros and cons and some examples to draw from.

A spreadsheet has been attached for you to download to assist you with determining the proportions of your Expenses/Expense Accounts across your divisions of work.

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