Which One of the Following Terms Is Applied to the Financial

question 10

Multiple Choice

Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?

• A)percentage of sales method
• B)sales dilution method
• C)sales reconciliation method
• D)common-size method
• E)trend method

---

Definitions:

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to ordering processing, transport, and receiving.

Carrying Costs

Expenses associated with holding or storing inventory over a certain period, including warehousing, insurance, and spoilage costs.

Optimal Order Quantity

Refers to the number of units that should be ordered to minimize the total inventory costs like ordering, holding, and shortage costs.

MRO

Maintenance, repair, and operating materials.