A Percentage-Of-Sales Model Forecasts That Cost of Goods Sold Will

question 93

Multiple Choice

A percentage-of-sales model forecasts that cost of goods sold will remain at 80% of sales.If sales revenues are expected to grow by 20% next year,cost of goods sold:

• A) will grow by 16%.
• B) will grow by 20%.
• C) could grow either faster or slower than sales.
• D) will remain constant.

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Definitions:

Supply Chain

The linked set of companies that perform or support the delivery of a company’s goods or services to customers.

Logistics

That part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.

Flow of Money

The movement of money between individuals, businesses, and governments, influencing economic activity and financial stability.

Social Media

Online platforms that allow users to create, share content, and participate in social networking.