Gross Profit on a Pro-Forma Income Statement Is Calculated as

question 155

Multiple Choice

Gross profit on a pro-forma income statement is calculated as

• A)budgeted sales revenue minus contribution margin.
• B)budgeted sales revenue minus budgeted cost of goods sold.
• C)budgeted sales revenue minus product cost and period cost.
• D)None of these answer choices are correct.

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Definitions:

Backward Integration

Backward Integration is a business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, often involving the acquisition of or merger with these businesses.

Vertical Integration

A business strategy in which a company controls multiple stages of production or distribution within the same industry, from raw materials to final product delivery.

Tiffany & Co.

A luxury American multinational jewelry and silverware corporation, known for its diamond and sterling silver jewelry.

Corporate Vertical Marketing Systems

A structured form of marketing system in which a single corporate entity controls the entire process of product or service delivery, from manufacturing to retail.