Intermediate Inputs vs. COGS


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  • Official comment
    Michael Nealy

    Hello again Christian!

    It would not be appropriate for the change in inventory to be accounted for in the Intermediate Input value. Instead, this should be accounted for in the yearly revenue/sales value, as Output should be net of inventory changes. So if you have total sales as $10M, but you know that $4M of that came from inventory that was produced in a prior year - then $6M would be your inputted Output value for the IIA Event. On the other hand, if you have sales as $10M but you know that they added $4M in inventory that was not sold, you would model $14M of Output.  



    Michael Nealy

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