The percent-of-sales method would be more accurate under a steady sales assumption than cyclical sales.

Name: The percent-of-sales method would be more accurate under a steady sales assumption than cyclical sales.
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Question

Quizplus · Accepted Answer

The percent-of-sales method assumes that certain expenses and balance sheet items vary directly with sales. It is more accurate when sales are steady, as it relies on consistent sales patterns to predict future financials. Cyclical sales introduce variability that can lead to inaccuracies.

The Percent-Of-Sales Method Would Be More Accurate Under a Steady