Cost Classification in Financial Projections

There are two major cost items to take into account when preparing financial projections, manufacturing costs, and non manufacturing costs.

Manufacturing costs are the costs incurred in the manufacture of a product for sale to customers and are included under cost of goods sold and inventory in the financial projections. Non manufacturing costs are costs not related to the product and are included in operating expenses in the income statement of the financial projections.

Last modified October 15th, 2019 by Michael Brown
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Cost Structure in a Business Plan

Cost structure is an important factor to consider when producing financial projections. A high fixed cost structure will result in the need for higher levels of sales in order for the business to break even.

Last modified July 19th, 2019 by Michael Brown
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