Management Overhead

All products and services that companies sell cost money. Management must know what it sells are generating profits and what do not.

So how can a company show a profit on everything it sells but still operate at a loss? - By not factoring in overhead. The cost of the managers, their offices, their support staff - indeed all the indirect costs of the company has to be allocated to products/services sold in some way, manner, shape, or form. Only when the products/services are burdened with their total costs can their profit/loss be truly evaluated.