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.

---

Definitions:

Hindbrain

The posterior part of the brain, consisting of the cerebellum, pons, and medulla oblongata, responsible for regulating basic life functions.

Thalamus

A structure in the brain that relays sensory and motor signals to the cerebral cortex.

Cerebellum

A region of the brain that plays a vital role in motor control, and may also be involved in some cognitive functions like attention and language.

Pons

A portion of the brainstem that plays a key role in controlling breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.