The percent of sales forecasting method must project all cost and balance sheet items at the same growth rate as sales.

Name: The percent of sales forecasting method must project all cost and balance sheet items at the same growth rate as sales.
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Question

Quizplus · Accepted Answer

The percent of sales forecasting method only projects expenses, such as cost of goods sold and operating expenses, at a certain percentage of sales. It does not necessarily project balance sheet items at the same growth rate as sales.

The Percent of Sales Forecasting Method Must Project All Cost