Available modeling methods
| Method / input | Behavior |
|---|---|
| Amount / growth | Direct cost or a percentage change from the previous cost. |
| Percentage / gross margin | Use a chosen reference percentage or derive costs from revenue and the selected gross margin. |
| Cost × volume | Enter unit cost and volume. A linked-volume method is available when a revenue line uses Price × volume. |
One source for volume
Add a named COGS line in Advanced. For a quantity-based business, connect it to an eligible revenue volume instead of maintaining two independent quantities. A linked reference follows its source and cannot form a cycle. Total COGS reduces gross profit and supplies the cost base used by inventory and payable day assumptions.
Test margin versus cash effects
With revenue of 1,000 and a gross margin of 40%, costs are 600. Raising unit cost lowers profit and may also increase inventory and payables. A positive COGS adjustment increases cost; a negative component reduces it. Inspect the resulting linked GP and EBITDA impacts.
Documents the current implemented behavior. Example assumptions are not market data.