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Depreciation
The process of allocating the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.
Pro Forma Statement
A financial document that forecasts the future income, expenses, or financial position of a company under hypothetical conditions.
Variable Costs
Expenditures that vary in a direct manner with the volume of output or sales.
Straight-Line Depreciation
A mechanism for spreading the expenditure of a tangible asset over its longevity in equal annual fractions.
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