If a Firm Currently Has Excess Capacity,then Using the Percent

question 57

True/False

If a firm currently has excess capacity,then using the percent of sales method to forecast its fixed asset balance will likely result in an overestimate of the fixed asset balance and an inflated amount of discretionary financing needed.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Fearless

Being fearless is characterized by the absence of fear, demonstrating boldness or courage in the face of potential danger or discomfort.

Impulsive

Characterized by acting without forethought or deliberation, often driven by immediate desires or reactions.

Drug Withdrawal

Symptoms that occur after cessation or reduction in intake of addictive substances to which one has become physically or psychologically dependent.