In the context of computing the cost of sales, the common way to do this is to use the percent-of-sales method, which is a method for expressing:
A) each expense item as a percentage of net sales
B) each expense item as a percentage of gross profit
C) each expense item as a percentage of net income
D) each expense item as a percentage of operating income
E) each expense item as a percentage of cost of sales

Question

Quizplus · Accepted Answer

The percent-of-sales method involves expressing each expense item as a percentage of net sales to estimate future expenses based on projected sales.

In the Context of Computing the Cost of Sales, the Common