|Stepped Rate Revenue family|
|Make stepped rate projections combining a rate and a price to give a revenue|
|Description: Calculates stepped rate projections of revenue where price and revenue are changing over time|
|Introduction: The Stepped Rate Revenue Family, like the Constant Rate Revenue family, is about applying selected functions from the Stepped Rate family to the most common scenario - projecting revenue.|
Usually you do this by separately projecting the price and the production, and multiplying the two together. This can in some circumstances be rather less than perfect, because the price might change midway through a timeperiod and there is some confusion as to whether you report the average, starting or closing price. It tends to mean that when you run your model on different timebases eg quarterly and annually, you get slightly different answers.
The functions in the Stepped Rate Revenue family take care of when price movements occur and offer you the option, through the RevMonthsOpt variable, of specifying the frequency at which you want the price movements to be applied to the forecast, for example, you might want the price only to be allowed to change annually. The default is that price changes are applied continually ie as soon as they happen on the forecast.
|Functions in the Stepped Rate Revenue family (8)|