Which of the following statements about the percent - 780

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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 Description

Which of the following statements about the percent-of-sales method of financial forecasting is true?&nb