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:

Airbag System Component

Parts of an airbag system in a vehicle designed to inflate rapidly during a collision to prevent occupants from striking the vehicle interior or being thrown from the car, enhancing passenger safety.

SRS System

Supplemental Restraint System, an automotive safety feature incorporating airbags and other components to protect passengers during a collision.

Steering Column

The shaft connecting the steering wheel to the steering mechanism of a vehicle, allowing the driver to control the direction of travel.

Collision

The event where two objects come into contact with force, often used to describe traffic accidents involving vehicles.