The Percentage of Sales Method Produces Accurate Results Unless Which

question 28

Multiple Choice

The percentage of sales method produces accurate results unless which of the following conditions is (are) present?

• A) Fixed assets are "lumpy."
• B) Strong economies of scale are present.
• C) Excess capacity exists because of a temporary recession.
• D) Answers a, b, and c all make the percentage of sales method inaccurate.
• E) Answers a and c make the percentage of sales method inaccurate, but, as the text explains, the assumption of increasing economies of scale is built into the percentage of sales method.

---

Definitions:

Mood Disorders

Mental health disorders that primarily affect a person's emotional state, such as depression and bipolar disorder.

Hoarding Disorder

A psychological disorder characterized by the persistent difficulty discarding or parting with possessions, regardless of their actual value, leading to clutter and distress.

Panic Disorder

Recurrent experiencing of attacks of extreme anxiety in the absence of external stimuli that usually elicit anxiety.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, marked by flashbacks, nightmares, and severe anxiety.