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It is necessary to develop a pro forma income statement, pro forma balance sheet, and cash budget.
Activity-based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.
limitation about net income approach
traditional approach
The threes standard approaches to valuation are: 1) the income approach, 2) the market approach, and 3) the asset (or cost) approach.
If you plan to live there yourself, you'd probably use the comparison approach. You would use the gross rent formula only if you were purchasing the house as a rental.
the comparison of art from different cultures gets overlooked
This outline likely uses a point-by-point approach, where each main point is discussed for both subjects being compared and contrasted. This method allows for a detailed and systematic comparison of each aspect of the subjects.
Gdp = c + i + g + (x - m)
The usual approach is to divide the object's mass by its volume.
The expenditure approach calculates GDP by summing the four possible types of expenditures as follows:GDP=Consumption etc.
The income approach is used to estimate the market value of income producing properties such as office buildings, warehouses etc.
Bond's work index one of the most acceptable approach to calculate the grindability index.
how to compute national income. Through; expenditure approach, income approach, and input and output approach. Now for the expenditure approach you add G+I+C+(X-M) Income approach; addition of the factors of production
find the value of Y and X
Intial volume = final volume from this approach if you know any one of them % reduction in area or % elangation. you can calculate other
I assume what you are referring to is the fact that if your are using the indirect approach to complete a cash flow statement, you add back depreciation. This step makes it look like depreciation is generating cash flow for the company. The reason for adding depreciation is that when we are preparing our cash flow statement, we are reconciling net income to account for things that are not reflected or things that do not affect cash flows. If we simplify it, we can say that net income equals ( Sales - Expenses ). Depreciation is an expense that decreases our net income, but it is simply an accounting value to match expenses with revenues produced, and does not affect cash. So, since we deducted depreciation to get to net income we need to add it back when we do our cash flow statement to reconcile net income with our cash flow.