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In the past the study has consolidated
revenues and expenses into fairly broad categories making
some comparisons difficult. Factors such as corporate structure
(e.g., C corporation versus S corporation) further complicated
expense comparisons because of what was or was not reflected
on the income statement. The study now provides greater
detail for both revenues and expenses which has resulted
in more meaningful benchmarks for better "apples-to-apples"
comparisons. The new expense breakdowns include:
Compensation Expense— Both Payroll
and Benefits have been broken down to provide a better understanding
of the participating agencies' costs—what costs
are somewhat fixed (payroll taxes) versus discretionary costs
(retirement benefits, insurance, etc.).
Selling & Operating Expense—These
expense categories now include greater detail, including
any depreciation and amortization expense associated with
the category. This allows for a more accurate picture of
the total expenses incurred as both cash (e.g. monthly
lease payment) and non-cash expenses (e.g. computer depreciation
expense) are captured.
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