This is from a case that I am doing right now, and I'm confused by that phrase. So there's this company A, and under it a product line called B. My case asks me to build income statement and cash flow for the product line B, and in filling out the revenue, cost etc etc, there's this: "Expense from corporate functions allocated to the product line B for year 2010 = $xxx, 2011 = $xxx, 2012 $xxx"
Do I regard this as part of the operating expense? I'm not sure where this fits into in income statement (or does this go to cash flow statement)?
Any help would be appreciated and sb (as soon as i get some sb credits)
pretty sure it's a vanilla expense
what's a vanilla expense? also, if it only says: "Sale of Fixed Assets: 2011 - $xxx, 2012 - $xxx, 2013 - $xxx", then i can't tell if it's a gain or loss on the sale of fixed assets, so I shouldn't include this on income statement, right?
that would be your HR, IT, accounting, finance, etc cost centers that get allocated pro rata to each business line depending on whatever factor the company chooses (sales, segment NI, # of people etc) so it is definitely opex
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