Which of the following statements about the percent-of-sales method - 4332

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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 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 projects all liabilities as a fixed percentage of sales. 

 
Solution Description

Which of the following statements about the percent-of-sales method of financial forecasting