Forecasted Cost

The Forecasted Cost calculator computes the forecasted cost based on the Sales Forecast and the Target Cost percent.

INSTRUCTIONS: Choose units and enter the following:

• (SF) Sales Forecast
• (TC) Target Cost percent

Forecasted Cost (FC):The calculator returns the cost in U.S. dollars.  However, this can be automatically converted to other currencies via the pull-down menu.

The Math / Science

Forecasted Cost computes the prediction of a company's desired future cost. This forecast is done for a particular period of a time in the near future, usually the next fiscal year.

The formula for the Forecasted Cost is:

    Forecasted Cost =. Sales Forecast⋅Targeted Cost %

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
• "Sales Forecasting Definition - at TrackMaven.com." TrackMaven. N.p., n.d. Web. 08 Aug. 2015.