Forecasting the cost to be incured

• Cost of Sales

  • amount of merchandise/goods sold by the business for a given time
• Merchandise Inventory, beginning

  • merchandise/goods at the beginning of operation of business period
• Purchases

  • goods purchased
• Merchandise Inventory, End

  • goods left at the end of operation or accounting period
• Freight in

  • amount paid to transport goods purchased from the supplier to buyer, buyer is usually the one who pays
• Operating Expenses

  • cost incurred through payment of the utilities