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HELP PAGE >> Click here to return to the benchmark wizard << DEFINITIONS: Term Definition Notes Annual Sales Total consolidated gross sales. Enter number representing how many millions of dollars or euros of sales your company had, without commas or spaces. No deductions or rebates should be applied. This will be recorded in SG&A. Supply All raw materials, components, and supplies that are required to manufacture a finished good product. This is regardless of whether they are purchased from an outside or internal supplier. Vertically integrated companies should classify those costs that transfer raw material or WIP to another site as Supply. Conversion All costs to convert raw materials or WIP to finished goods. This includes manufacturing overhead, depreciation, and other fixed costs related to manufacturing assets, including direct labor. Delivery Cost of moving WIP or FGI between sites and FGI to customers or distribution centers. It should not include inbound freight for materials, that cost should be included in Supply. Supply Chain Costs The sum of Supply, Conversion and Delivery. Gross Margin The difference between Sales and Supply Chain Costs. SG&A All costs related to sales and marketing activities, pricing and promotional activities or events. It should also include other miscellaneous costs above the operating income line not captured in Supply, Conversion, or Delivery. Operating Margin Gross profit, the difference between Gross Margin and SG&A >> Click here to return to the benchmark wizard <<

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