The percentage-of-sales method should be used for projecting interest and taxes, but not dividends, in the income statements.

Name: The percentage-of-sales method should be used for projecting interest and taxes, but not dividends, in the income statements.
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Quizplus · Accepted Answer

The percentage-of-sales method is typically used for projecting variable items like sales, cost of goods sold, and sometimes expenses, but not for fixed items like interest, taxes, or dividends, which do not directly vary with sales.

The Percentage-Of-Sales Method Should Be Used for Projecting Interest and Taxes