One common type of financial model is the business driver or cost driver model. This is where you forecast costs or expenses based on the level of some relevant business driver. For example, you may want to forecast advertising expense based on projected growth in revenue. Alternatively, you might forecast your phone expenses based on the projected number of employees. Read the rest of this entry »
Cost drivers
May 24, 2010
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Financial Modelling | Tagged: Spreadsheets, Excel, Blocks, INDEX, MATCH, Cost drivers | 
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Posted by Darren Miller
What’s the difference?
July 7, 2009Following on from the previous post, once you’ve started on the path of setting out your model in blocks of related cells, you may become obsessed with knowing that all the cells in the block contain the same formula. After all, there’s no point in arranging your spreadsheet into nice blocks of logically consistent cells, if one or more of the cells in a block has a different formula to the others. Read the rest of this entry »
2 Comments | Financial Modelling | Tagged: Spreadsheets, Excel, Design, Blocks, Inconsistencies, Macros | Permalink
Posted by Darren Miller
Design in Blocks
June 16, 2009One of the more important considerations when attempting to create a well designed spreadsheet model is the concept of designing in blocks.
“Blocks” is a colloquial rather than a technical term, and means a “range of contiguous cells that have something in common”. This could be something trivial like number format (currency, percentages, etc.), cell shading, and the like. Or it could be something more meaningful like a logically identical formula. Read the rest of this entry »
1 Comment | Financial Modelling | Tagged: Spreadsheets, Excel, Design, Blocks | Permalink
Posted by Darren Miller
