Cost Forecast Using Excel Regression Analysis

Financial projections require cost forecasts to be made based on key cost drivers. Most costs are mixed in that they contain both a variable and a fixed cost component. Excel linear regression analysis can be used to identify both of these components based on past data to enable a cost forecast equation to be developed.

Last modified September 18th, 2019 by Michael Brown
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Expense Forecasting

To simplify the process of expense forecasting there are various techniques which can be employed to link each type of expense to other variables (cost drivers), such as revenue or headcount, which have already been forecast in the financial projections. Of course there will always be expenses which are fixed in nature, which cannot be linked to other variables and need to be estimated in absolute monetary terms.

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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