________ Is(are)added Back to the Pro Forma Sources and Applications

question 27

Multiple Choice

________ is(are) added back to the pro forma sources and applications of funds statement because it does not represent and out-of-pocket expense. 

• A) Inventory
• B) Depreciation
• C) Dividends
• D) Equipment purchases

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Definitions:

Cost Comparisons

The analysis and review of different costs associated with performing various operations or producing different products within a business.

External Reporting

The preparation and disclosure of financial and other performance information by a company to external stakeholders, including regulators, investors, creditors, and the public.

Predetermined Fixed Overhead Rate

A rate estimated at the beginning of an accounting period to allocate fixed overhead costs to products or services based on a defined activity base.

Cost Of Goods Manufactured

The total production cost of goods completed and made ready for sale during a specific period.