§4 An actual example of the managed gross profit chart

QM

Costs

Profit

Sales

Actual example for the gross profit chart

This chart shows an actual managed gross profit chart for one business department of my company in one fiscal period. The blue line graphs show the budgeted income statement at the beginning of the period. The difference between the blue marginal gross profit line( the declined line) and the green line represents the selling and general administrative expenses assigned to the business department from the overall SG&A expenses. The red line graphs show combinations of actual accounting data at a month. The blue line graphs are updated at a proper month. The red line graphs are updated monthly.  The blue and the red line graphs are updated to become same at the end of the period representing the final income statement.

In this chart,  supervising engineers' labor costs, field workers' labor costs and social insurance contributions by employers are classified in  the 2nd kind of manufacturing overhead departments( accounting departments). If we properly adopt  the 2nd kind of manufacturing overhead departments, the both position and slope of the marginal gross profit line is stable during the period.