When you are creating a pro forma income statement, the best way to estimate costs for...
When you are creating a pro forma income statement, the best way to estimate costs for the coming year is to use the assumption that _____.
A. all costs will increase by the same percentage as revenues
B. all variable costs will increase the by same percentage as revenues
C. all fixed costs will increase by the same percentage of revenues
D. all of the above
Homework Answers
| Option B is the answer | |
| When creating a proforma income statement, it is estimated that variable costs are in direct proportion to the output whereas fixed cost doesn't change in the immediate near future |
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