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The Percent of Sales Method Does Not Provide a Reasonable

question 125

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The percent of sales method does not provide a reasonable prediction of asset levels for instances when there are economies of scale in the use of the asset being forecast and when asset purchases are lumpy.


Definitions:

Algae

A diverse group of photosynthetic organisms, mostly aquatic, that range from single-celled forms to large seaweeds, not classified as plants.

Multinucleate

Cells or organisms with more than one nucleus per cell, often resulting from cell fusion or failure of cell division.

Plasmodial Slime Molds

Organisms that exist as a single, large cell with multiple nuclei, moving and feeding in amoeboid fashion.

Amoeboid-Like

Resembling or having the characteristics of an amoeba, especially in the ability to change shape or move by protruding pseudopodia.

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