{"id":135,"date":"2022-01-14T19:10:47","date_gmt":"2022-01-14T19:10:47","guid":{"rendered":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/chapter\/design-phase-contd\/"},"modified":"2026-03-16T13:58:13","modified_gmt":"2026-03-16T13:58:13","slug":"design-phase-contd","status":"publish","type":"chapter","link":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/chapter\/design-phase-contd\/","title":{"raw":"Design Phase Cont'd","rendered":"Design Phase Cont&#8217;d"},"content":{"raw":"This portion of\u00a0 the Design phase will be focused on using estimated costs to develop a Profit\/Loss statement (P&amp;L statement). The BOM and prototype costing completed in Module 4A assignments will be key input into the P\/L template. The determination of profitability will be completed in this phase.\n\nA profit and loss statement (P&amp;L), or income statement\u00a0or statement of operations, is a financial report that provides a summary of a company\u2019s revenues, expenses, and profits\/losses over a given period of time. The P&amp;L statement shows a company\u2019s ability to generate sales, manage expenses, and create profits. It is prepared based on accounting principles that include revenue recognition, matching, and accruals, which makes it different from the cash flow statement.\n<h2><span style=\"color: #1b3b80;\">Typical Structure of the Profit and Loss Statement<\/span><\/h2>\nA company\u2019s statement of profit and loss is portrayed over a period of time, typically a month, quarter, or fiscal year.\u00a0 The main categories that can be found on the P&amp;L include:\n<ul>\n \t<li style=\"text-align: left;\">Revenue (or Sales)<\/li>\n \t<li style=\"text-align: left;\">Cost of Goods Sold (or Cost of Sales)<\/li>\n \t<li style=\"text-align: left;\">Selling, General &amp; Administrative (SG&amp;A) Expenses<\/li>\n \t<li style=\"text-align: left;\">Marketing and Advertising<\/li>\n \t<li style=\"text-align: left;\">Technology\/Research &amp; Development<\/li>\n \t<li style=\"text-align: left;\">Interest Expense<\/li>\n \t<li style=\"text-align: left;\">Taxes<\/li>\n \t<li style=\"text-align: left;\">Net Income<\/li>\n<\/ul>","rendered":"<p>This portion of\u00a0 the Design phase will be focused on using estimated costs to develop a Profit\/Loss statement (P&amp;L statement). The BOM and prototype costing completed in Module 4A assignments will be key input into the P\/L template. The determination of profitability will be completed in this phase.<\/p>\n<p>A profit and loss statement (P&amp;L), or income statement\u00a0or statement of operations, is a financial report that provides a summary of a company\u2019s revenues, expenses, and profits\/losses over a given period of time. The P&amp;L statement shows a company\u2019s ability to generate sales, manage expenses, and create profits. It is prepared based on accounting principles that include revenue recognition, matching, and accruals, which makes it different from the cash flow statement.<\/p>\n<h2><span style=\"color: #1b3b80;\">Typical Structure of the Profit and Loss Statement<\/span><\/h2>\n<p>A company\u2019s statement of profit and loss is portrayed over a period of time, typically a month, quarter, or fiscal year.\u00a0 The main categories that can be found on the P&amp;L include:<\/p>\n<ul>\n<li style=\"text-align: left;\">Revenue (or Sales)<\/li>\n<li style=\"text-align: left;\">Cost of Goods Sold (or Cost of Sales)<\/li>\n<li style=\"text-align: left;\">Selling, General &amp; Administrative (SG&amp;A) Expenses<\/li>\n<li style=\"text-align: left;\">Marketing and Advertising<\/li>\n<li style=\"text-align: left;\">Technology\/Research &amp; Development<\/li>\n<li style=\"text-align: left;\">Interest Expense<\/li>\n<li style=\"text-align: left;\">Taxes<\/li>\n<li style=\"text-align: left;\">Net Income<\/li>\n<\/ul>\n","protected":false},"author":1,"menu_order":2,"template":"","meta":{"pb_show_title":"","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-135","chapter","type-chapter","status-publish","hentry"],"part":132,"_links":{"self":[{"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/chapters\/135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":1,"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/chapters\/135\/revisions"}],"predecessor-version":[{"id":136,"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/chapters\/135\/revisions\/136"}],"part":[{"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/parts\/132"}],"metadata":[{"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/chapters\/135\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/wp\/v2\/media?parent=135"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/pressbooks\/v2\/chapter-type?post=135"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/wp\/v2\/contributor?post=135"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/libraryresources.nse.org.ng\/me270baughman\/wp-json\/wp\/v2\/license?post=135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}