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.

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Definitions:

Nuts

Apart from the common understanding as a type of food, in an economic or financial context, "nuts" does not have a specific definition.

Berries

Berries are small, pulpy, and often edible fruits, typically juicy, rounded, brightly colored, sweet or sour, and do not have a stone or pit, although many seeds may be present.

Berries

Small, juicy fruits that are typically round, soft, and of various colors - eaten as food.

Nuts

In an economic context, refers to commodities or tangible goods that are traded, consumed, and can affect markets, but more generally just a type of food.