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estimate the cash flow from operations, depreciation must be added back to net income because it is a non-cash charge that has been deducted from revenue.
Activity Cost Pools
A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately to products or services.
Plantwide Overhead Allocation
A method of allocating indirect costs to products based on a single overhead rate used throughout an entire plant or company.
Budgeted Costs
Estimated financial expenditures forecasted for a specific future period, often categorized by type or department.
Departmental Overhead Rates
The allocation of indirect costs to specific departments based on a predetermined formula, used to accurately assign costs to products based on the departments they pass through.
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