FORECASTING-COST

Forecasting Costs

The process of predicting future expenses related to producing goods or services.

Cost of Goods Sold

Refers to the amount of merchandise or goods sold by a business for a given period of time.

Operating Expenses

The costs incurred in the everyday running of a business, including salaries, utilities, and other costs not directly linked to production.

Freight-in

The amount paid to transport goods or merchandise purchased from the supplier to the buyer.

Merchandise Inventory, beginning

Goods and merchandise available for sale at the beginning of the operation or accounting period.

Projected Volume

The estimated number of items expected to be sold or produced during a specific period.

Mark-up

The amount added to the cost of a product to determine its selling price.

Projected Cost per Unit

The estimated expense associated with producing each unit of product.

Total Operating Expense

The sum of all costs incurred in the operation of a business over a given period.

Loss

The situation where costs exceed revenues in a business operation.

Merchandise Inventory, end

Goods and merchandise that remain unsold at the end of an operation or accounting period.

Revenue

The total income generated from sales before any expenses are deducted.

Utility Expenses

Costs incurred for services such as electricity, gas, and water.

Projected Daily Revenue

The anticipated total income generated from sales on a daily basis.

Net Cost of Purchases

The total amount spent on acquiring merchandise, excluding any discounts or returns.

Selling Price

The amount at which a product is sold to consumers.

Projected Costs of Purchases

The estimated expenses for acquiring merchandise over a specified period.