The Percent-Of-Sales Method of Financial Forecasting

question 93

Multiple Choice

The percent-of-sales method of financial forecasting

• A) is more detailed than a cash budget approach.
• B) requires more time than a cash budget approach.
• C) assumes that balance sheet accounts maintain a constant relationship to sales.
• D) provides a month-to-month breakdown of data.

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Definitions:

Coordination

The organized and efficient interaction of different elements or body parts to perform a task or activity.

Symbolic

Pertaining to symbols or the use of symbols to represent ideas, concepts, or other things.

Substage 6

Typically refers to a phase within a developmental process or theory, which outlines specific milestones or characteristics unique to that stage.

Sensorimotor Period

A stage in early childhood development characterized by learning through sensory experiences and motor activities.