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According to the text, the development of classification systems such as the DSM was largely based upon
Percentage of Sales Approach
A financial planning method that uses a specified percentage of sales or revenues to forecast future financial needs or growth requirements.
Variable Expenses
Costs that change in proportion to the activity or business volume.
Fixed Expenses
Costs that do not change in total despite fluctuations in business activity levels or volume, such as rent or salaries.
Percentage of Sales Approach
A method for forecasting financial needs based on a fixed percentage of projected sales, often used in budgeting and financial planning.
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