Which of the following statements about the percent

 Which of the following statements about the percent-of-sales method of financial forecasting is true?
A. It projects all liabilities as a fixed percentage of sales.
B. It is the least commonly used method of financial forecasting.
C. It involves estimating the level of an expense, asset, or liability for a future period as a percent of the forecast for sales revenues.
D. It is a much more precise method of financial forecasting than a cash budget would be.

 

Solution

Which of the following statements about the percent

Which of the following statements about the percent-of-sales method of financial forecasting is true?
A.
It is a much more precise method of financial forecasting than a cash budget would be.
B.
It involves estimating the level of an expense, asset, or liability for a future period as a percent of the forecast for sales revenues.
C.
It projects all liabilities as a fixed percentage of sales.
D.
It is the least commonly used method of financial forecasting.

Solution

Which of the following statements about the percent

Which of the following statements about the percent-of-sales method of financial forecasting is true?
A. It involves estimating the level of an expense, asset, or liability for a future period as a percent of the forecast for sales revenues.
B. It is the least commonly used method of financial forecasting.
C. It is a much more precise method of financial forecasting than a cash budget would be. D. It projects all liabilities as a fixed percentage of sales.

 

Solution