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

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

Quizplus · Accepted Answer

The percent-of-sales method assumes that most of the company's expenses vary directly with sales. Therefore, it is more accurate when sales are steady and predictable, as opposed to cyclical sales which fluctuate and make it harder to estimate future expenses accurately.

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