The Percent-Of-Sales Method Is a Commonly Used Method for Estimating

question 118

True/False

The percent-of-sales method is a commonly used method for estimating a firm's financing needs.

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Definitions:

Marginal Cost

The uptick in cumulative expenses that comes from producing an additional unit of a product or service.

Total Revenue

The total receipts from sales of a given quantity of goods or services.

Marginal Revenue

The supplementary financial gain obtained through the sale of one more unit of a good or service.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes.