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Financial Modeling for Business Owners and Entrepreneurs: Developing Excel Models to Raise Capital, Increase Cash Flow, Improve Operations, Plan Projects, and Make Decisions by Tom Y. Sawyer

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CHAPTER 6

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Cost of Goods Sold and Inventory Model: Plot Your Costs and Margins

In this chapter, you will learn how to plan, create, and use the Cost of Goods Sold and Inventory (COGS) model. The COGS model is closely related to the Sales and Revenue (REV) model discussed in Chapter 5. COGS demonstrates the modeling of the cost of goods sold and inventory requirements for Green Devil Control Systems as set forth in its business case, including modeling of variable costs, contributions to margins, inventory, and accounts payable associated with inventory.

In this chapter, you will learn how to

  • Model variable costs associated with products and services ...

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