2 What is meant by the statement This increase in overheads will have an impact on the...
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2 What is meant by the statement ‘This increase in overheads will have an impact on the profit generated for the interim period’?
This news story emphasizes the importance of controlling overheads.Murgitroyd has opened up new offices overseas and taken on new staff. This is expected to reduce its profits so it is tackling this by attempting to reduce its costs. This company is an intellectual property consultant so it will not have the problems of dealing with production overheads. However, it presumably has to charge its clients with a share of its overheads.
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