Maolivie commented on the following stories on BizSugar
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The Basics of a Product P&L
"Just to be clear, there is a difference better a cash flow projection/income statement and a product P&L. Differences are: 1) Product P&L typically does not include projections of revenue or profit. The sole purpose is to see if a product is profitable or not 2) Income statement blends all of your business units/product lines together to forecast and view revenue/profitability. Therefore, cogs is blended, trade is blended, delivery is blended, etc. 3) Any kind of projecting that you do requires the need to discount future cash flow streams due to the time value of money. This is something not found on a product P&L, but on a discounted cash flow With that said, it might be worthwhile to estimate how many units you will sell to determine what your penny/dollar profit would be, however, certain expenses don't roll up at the product level (amortizations, taxes, etc.) and therefore, best way to see total sales and profit/loss is the income statement or cash flow."