Here the chart--the working plan--is again applied to excellent advantage. The chart, Fig. 7, applied to salary and wage distribution, shows to which of the two principal divisions each item should be charged. This is the important question--to properly apply expenses to the commercial and manufacturing branches. Subdivisions of such a chart segregating expenses of each division are easily made. The application of the items from which lines lead only to the commercial or manufacturing branch is readily understood. Between the two are several items from which lines lead to both branches, indicating that the expense is to be divided. This division should be given close study. Care must be used that too large a part of any item is not applied to either branch. The salary of the general manager, and usually the comptroller, will be equally divided. The duties of the chief accountant, chief stenographer and stenographers being chiefly in connection with the commercial branch, only a small portion of their salaries is charged to manufacturing. Shipping clerk and packers' salaries are charged to either one or the other branch, depending upon the nature of the enterprise. In a manufacturing enterprise where all goods are delivered to stock rooms ready for shipment, packing and shipping is a sales expense and is charged to the commercial branch; in a plant building heavy machinery that must be shipped from the assembling floor, this expense is usually charged to manufacturing. EXPENSE DISTRIBUTION CHART =23.= To present a graphic record of expense distribution, the chart, Fig. 8, is used. This chart separates commercial and manufacturing expense, showing amounts, while Fig. 7 shows to which branch each item belongs. This chart subdivides commercial expense into _executive_, _accounting_, _office_, _sales_, and _credits and collections_, showing totals for each and for the entire commercial branch. Manufacturing expense is subdivided into _executive_, _accounting_, _purchasing_, _engineering_, and _shops and equipment_. A comparison of these statements from month to month will show just what every item is and indicate the slightest increase in any class of expense. Similar charts can be readily prepared for any business, segregating expenditures of each branch, division, or department. The distribution will naturally vary in different businesses and, before this chart can be prepared, the exact distribution must be determined. In this chart, packing and shipping is included as a commercial expense, while, as stated previously, in some businesses it would be a manufacturing expense. All such questions must be decided before the chart is prepared. [Illustration: Fig. 7. This Shows How Salaries and Wages are Apportioned to the Two Principal Divisions of a Business] [Illustration: Fig. 8. This Chart of Expense Distribution Shows the Amount of Executive and Administrative Salaries, and Expense of Every Class, and Their Correct Apportionment]