The Percent-Of-Sales Method of Forecasting Makes Which of the Following

question 15

Multiple Choice

The percent-of-sales method of forecasting makes which of the following assumptions?

• A)The inventory turnover will remain the same during the forecast period.
• B)The profit margin will remain constant during the forecast period.
• C)Cash,as a percent of sales,will remain constant throughout the forecast period.
• D)All of the above.
• E)None of the above.

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Definitions:

Ammonia

A compound of nitrogen and hydrogen (NH3) that is a colorless gas with a pungent smell, used widely in industry and produced naturally in the body as a byproduct of amino acid metabolism.

Bicarbonate Ions

A negatively charged ion that acts as a significant component of the bicarbonate buffer system, helping to maintain pH balance in blood and other bodily fluids.

Phosphate Ions

Negatively charged ions (PO4^3-) that play crucial roles in biological processes such as energy transfer and cellular regulation.

Sensible Perspiration

Perspiration excreted by the sweat glands that appears as moisture on the skin; produced in large quantity when there is much humidity in the atmosphere.