From the course: Excel for Finance: Building a Three-Statement Operating Model

Unlock the full course today

Join today to access over 23,200 courses taught by industry experts.

Forecasting the cost of goods sold

Forecasting the cost of goods sold - Microsoft Excel Tutorial

From the course: Excel for Finance: Building a Three-Statement Operating Model

Start my 1-month free trial Buy for my team

Forecasting the cost of goods sold

“

- [Instructor] Okay, so now that we've finished out our revenue build, let's move on to our cost of goods sold. And the way I like to think of cost of goods sold is what does it cost us to make the stuff that we sell, right? We have the actual product costs, right? If this is a home goods company, it's going to be the cost of making the actual product that appears in the store, but it also will be probably the freight to get it there and also the labor that might be associated with producing those costs. So all of that is going to roll into your cost of goods sold number. However, for forecasting purposes, you know, we have an implied margin of each of those businesses which is calculated down here and we can use that margin to just carry forward as an assumption. Again, if you get into a more detailed FP&A setting, you may break down each one of these line items into its sub-components and see if you have some room to…

Contents