The output of the cost of goods sold budget is entered into the pro forma income statement.

Question

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The cost of goods sold budget provides an estimate of the cost of goods sold during a specific period. This figure is important to calculate the gross profit, which is deducted from revenue to arrive at the net income amount in the income statement. Therefore, the output of the cost of goods sold budget is entered into the pro forma income statement.

The Output of the Cost of Goods Sold Budget Is