The method of forecasting asset requirements is called the _____ technique.
A) percentage-of-inventory
B) percentage-of-equity
C) percentage-of-debt
D) percentage-of-sales

Question

Quizplus · Accepted Answer

The method of forecasting asset requirements based on the percentage of sales is known as the percentage-of-sales technique. This method estimates future asset requirements by forecasting sales and then calculating asset requirements based on a predetermined percentage of those sales. It is a commonly used method for short-term forecasting of asset requirements.

The Method of Forecasting Asset Requirements Is Called the _____