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

question 75

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.