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What percentage of a company's gross revenue should go to salaries?
Wiki User
∙ 14y ago
It depends on the business that the company is in. Manufacturers and retailers will have higher percentages of revenue in Cost of Goods Sold while service industries will have a higher percentage in salaries and benefits. A hospital will normally see between 32% and 40% of net patient revenue going to salaries with another 18% to 25% to employee benefits.
Wiki User
∙ 14y ago
Wiki User
∙ 13y agoEvery business model is different. There is no set amount or even a preferred range.
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What percentage of revenue should go to salaries for an administrative company?
22-24%
What percentage of revenue should office rent be?
Nada!
What should your profit be as a percentage of gross revenue?
20%
What percentage of revenue should a small business spend on advertising costs?
The percentage of revenue that a small business should spend on advertising changes depending on the circumstances. The basic needs of the business determine the percentage. If there is already a wide fan base, less advertising is needed.
What percentage of gross revenue should payroll be?
At a well known corporation such as Mc Donald's the managers are instructed to start cutting crew members if the labor percent grows above 20% of revenue.
Example of total variable cost as a percentage of sales revenue?
Total variable cost as a percentage of sales revenue can vary depending on the industry and specific business model. However, a generally accepted guideline is that variable costs should ideally be kept below 70-80% of sales revenue. This ensures that there is enough margin left for covering fixed costs and generating a profit.
The revenue recognition principle dictates that revenue should be recognized in the accounting records?
The revenue recognition principle dictates that revenue should be recognized in the accounting records when it is earned.
What percentage of company's gross income should go towards advertising?
Most small businesses should allocate between 2 and 3 percent of revenue for advertising. That number should increase as the business grows.
Should everyone believe that celebrity salaries should be lowered?
No
What is Will smith's net worth?
AnswerAfter the opening of Hancock, his estimated net worth should stand at a little over $380 million dollars, according to a varied list of base salaries and percentage gross.
What is Will Smith's net worth?
AnswerAfter the opening of Hancock, his estimated net worth should stand at a little over $380 million dollars, according to a varied list of base salaries and percentage gross.
What percent of gross income should go into salaries?
If you're going to set salaries as a percent of gross income, I submit that you're approaching the issue from the wrong direction. Salaries should be established based upon, not gross income, but (i) the responsibilities associated with the job and (ii) existing salaries for positions with similar responsibilities within your market.
