Cost of Sales and Gross Margins
Cost of sales (cost of goods sold, or COGS) is typically the single largest cost for companies that make and/or sell products.
SG&A Expenses
SG&A expenses are the other main type of operating costs. In contrast to cost of sales, SG&A expenses often have a less direct relationship with revenues.
Working Capital Forecasts
Working capital forecasts are typically made by using efficiency ratios, discussed in earlier modules, as the forecast object, which are combined with sales and costs forecasts to project accounts receivable, inventories, accounts payable, and other current assets and liabilities.
