In this article we will explore quick formula edits that will facilitate toggling between fixed, variable and semi-variable expense line items. Creating a projection that allows you to select how expenses should be categorized between these three expense types on a line-by-line basis will make the overall model-building process more efficient. The alternative, of modeling each item individually, can become cumbersome.
Whenever possible, I think it is better to distinguish between fixed and variable. If a line item doesn’t fit perfectly in either category, then it may make sense to explore whether or not the line item has supporting detail that could be used for this purpose. When that detail is not available the formula presented in the video can serve as a helpful estimate.