... project yr 4. If the depreciation were to be included in the accounts it would show the depreciation to be costing the firm 1.2 million. 3, The sum of 200,000 is also wrongly apportioned against overheads because Head office already allocates as part of its budgeting and costing process 200,000 for any new project therefore this sum isn't directly related to this project. Exclusions from Original Forecast Profit and Loss Accounts that Should be Included in Accounts 1, The literature indicates that because of favourable publicity the company will improve its market position and thus profitability of its other products. The benefit, which has been included as image benefit, is estimated at 150,000 for each of the four-year duration of the project. This figure is included as it is income gained by the project, however the estimate could prove to be inaccurate. 2, The investment of £750,000 which was allocated as a cash float ...

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