Overhead
Overhead = Indirect Labor Cost + All Other Indirect Costs Direct Labor Cost
• The ratio of indirect costs (including labor) to direct labor cost • Can include bonus expense – useful to measure including and excluding • Data below excludes bonus expense from calculation
Survey Median Very High Profit Firm Median 144% 138% 131% Fast Growth Firm Median
2017 2018 2019 2020 2021
154% 167% 164% 159% 144%
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THE PRINCIPALS ACADEMY 2022
Made with FlippingBook Annual report