The percent of sales method of forecasting assumes the level of some assets varies proportionately with the level of sales.

Name: The percent of sales method of forecasting assumes the level of some assets varies proportionately with the level of sales.
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Question

The percent of sales method of forecasting assumes the level of some assets varies proportionately with the level of sales.​

Quizplus · Accepted Answer

The percent of sales method assumes that certain balance sheet items, such as inventory and accounts receivable, will vary proportionately with the level of sales.

The Percent of Sales Method of Forecasting Assumes the Level