Cost and revenue projections are a part of forecasting.
Cost projections are an estimate of how much money will be spent over the term defined by the budget.
- Calculate projected expenses. Review all contracts to see if the pricing of reagents, supplies, or analyzer rental will increase from year to year.
- Look at costs for staffing, contract labor, etc. Costs may involve almost anything, including categorical items presented previously: Salaries and wages; employee benefits and payroll taxes; supplies, reagents, and other operating expenses directly related to testing; testing equipment (depreciation if depreciation period has not been realized); general operating expenses are not directly related to testing. Some examples are proficiency testing costs, accreditation costs, lab management, safety training; and utilities.
