When developing a pro forma income statement, which of the following steps are not used?
A) Establish a marketing projection.
B) Determine a production schedule and the associated use of new material, direct labor and overhead to arrive at gross profit.
C) Compute other expenses
D) Determine profit by completing the actual pro forma statement.

Question

Quizplus · Accepted Answer

Establishing a marketing projection is not a direct step in developing a pro forma income statement. A pro forma income statement focuses on projecting future revenue, costs, and expenses to estimate future profits, rather than on marketing projections.

When Developing a Pro Forma Income Statement, Which of the Following