From the course: Excel: Creating Business Budgets
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Understanding cost drivers - Microsoft Excel Tutorial
From the course: Excel: Creating Business Budgets
Understanding cost drivers
- [Narrator] You might be wondering how to budget effectively when there are so many variables with a business. With every business budgeting exercise, it pays in the long run to plan up front. So let's take the time to define our cost drivers; that is, the bills that the business will pay. If you'd like to follow along with me, then have my business budget EXP inputs open and navigate to the expense types worksheet. That's this worksheet here at the very bottom of the page. Once the worksheet is open, you'll notice that we have two columns: expense types and fixed and variable. Fixed and variable is something that we'll come back to in just a moment, but let's start by thinking of all of the expense types that this business is likely to incur to run the business. In this case, the example that we'll use is a cafe that specializes in making coffee. Now you'll notice that I've already prepared a list here of 10 expense types that are likely to be incurred by a business that specializes…
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