pends on which department. For example, the SG&A item is highly summarized and typically contains several departmental expenses-sales, marketing, accounting, corporate staff, and others of similar nature. The acronym means selling, general, and administrative expense. An- other example is product design and support. This category likely includes all organizational functions involved in creating products and supporting the customers who buy them. Depending on the size of the enterprise, there may be several departments, each with its own departmental budget, spending ability, and monthly report. Another place in the P&L where departmental expenses are likely to show up are in the cost of goods and services sold category. Product cost -service cost as well, but less likely-includes three components: direct labor, material, and overhead. For example, let's say our myth- ical company designs and manufactures widgets. And let's say that the company has several types of widgets and maybe even a widget system or two that are sold as individual items to many customers and shows up in the P&L revenue and gross margin in the Product A, B, and C categories. When accounting set up the system to keep track of all the money involved, they established accounts to capture the labor content and materials used to make the widgets. The manufacturing or produc- tion department would have its departmental expense budget, and include management and administrative heads as well as assembly and test or inspection heads. Management and administrative heads are a little tricky in that the expense associated with them may have to be allocated across several products. Other expenses, such as floor space, power, and other utilities, may be allocated as well, based on each product's percentage of the total. INVESTED CAPITAL There are two types of capital employed in most any kind of organiza- tion: working capital and investment in fixed assets, such as land, buildings, equipment, and other resources required to support the operation. Working