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

question 94

Multiple Choice

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

• A)That some assets do not increase in direct proportion to an increase in sales.
• B)The accounts receivable average collection period will remain constant throughout the forecast period.
• C)The firm may acquire some "lumpy" assets.
• D)All of the above.
• E)None of the above.