FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Padere's preliminary assumptions in her income statement is that there will be an overall increase in
expenses next year. What is the next logical step for Padere before presenting to her COO?
Select an answer:
Each of the forecasting assumptions must be researched, supported, justified, and explained.
No new steps are needed since the expected level of depreciation expense is tied to the expected level
of property, plant, and equipment.
Verify the forecasted increase in gross profit percentage is not impacted by changes in the competitive
environment.
No new steps are needed since the expected level of interest expense is tied to the expected level of
loans.
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Transcribed Image Text:Padere's preliminary assumptions in her income statement is that there will be an overall increase in expenses next year. What is the next logical step for Padere before presenting to her COO? Select an answer: Each of the forecasting assumptions must be researched, supported, justified, and explained. No new steps are needed since the expected level of depreciation expense is tied to the expected level of property, plant, and equipment. Verify the forecasted increase in gross profit percentage is not impacted by changes in the competitive environment. No new steps are needed since the expected level of interest expense is tied to the expected level of loans.
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