The Percentage-Of-Sales Method of Preparing Pro Forma Income Statements Assumes

question 47

Multiple Choice

The percentage-of-sales method of preparing pro forma income statements assumes that ________.

• A) sales are fixed
• B) all costs inversely vary with sales
• C) all costs are independent
• D) all costs are variable

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Definitions:

Add

In the context of mathematics or logic, to perform the operation of addition, which is the process of combining two or more quantities.

UI

Stands for User Interface, which is the means by which user interacts with a machine, software or device.

Simp

A term colloquially used to describe someone who demonstrates excessive sympathy or attention towards another person, often with little regard for reciprocation.

Assumption

A statement or idea accepted as true without proof, often used as a starting point for reasoning and arguments.