Complete the Following Table by Entering the Typical Forecast Driver

question 6

Essay

Complete the following table by entering the typical forecast driver in the third column and the typical forecast ratio in the last column.
$\begin{array}{|l|l|l|l|}\hline \text {Typical Forecast Drivers for the }\\ \text { Income Statement }\\\hline & \text { Line item } & \text { Typical forecast driver } & \text { Typical forecast ratio } \\\hline \text { Operating } & \text { Cost of goods sold (COGS) } & & \\\hline & \text { Selling, general, and } & & \\& \begin{array}{l}\text { administrative expense } \\\text { (SG\&A) }\end{array} & & \\\hline & \text { Depreciation } & & \\\hline \text { Nonoperating } & \text { Interest expense } & & \\\hline & \text { Interest income } & & \\\hline\end{array}$

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Definitions:

Value Creation

The process through which businesses or organizations generate added value for customers, stakeholders, or society at large, often leading to competitive advantage.

Suppliers

Businesses or individuals that provide goods or services to another entity, typically within a supply chain or production process.

Industry Rivals

Companies within the same industry that compete with one another for market share and profitability.

Erode Producer Profits

The process by which factors such as increased competition or higher costs reduce the profits that producers can make.