Which of the Following Assumptions Is Not Required by the Percent

question 100

Multiple Choice

Which of the following assumptions is not required by the percent of sales method?

• A) The inventory turnover will remain constant 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) The debt to equity ratio will remain constant throughout the forecast period.

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Definitions:

Affiliation

The need or desire to form connections with others, often driven by a sense of belonging or social identity.

Valence

In psychology, the intrinsic attractiveness or averseness of an event, object, or situation.

Frustration-Regression Principle

A concept from the field of psychology suggesting that when an individual's progress toward a goal is blocked, they may regress to previously held behaviors.

Hygiene Factor

A concept in Herzberg's motivation theory, referring to factors that can cause dissatisfaction if missing but do not necessarily motivate if increased or improved.