The assets-to-sales relationship tends to be relatively constant within an industry, allowing for a(n) _____ technique to be utilized in projecting asset requirements.
A) percentage-of-sales
B) bootstrap forecasting
C) asset turnover ratio
D) discounted sales

Question

Quizplus · Accepted Answer

The assets-to-sales relationship is commonly used in the percentage-of-sales technique for projecting asset requirements, as it is known to remain relatively constant within an industry.

The Assets-To-Sales Relationship Tends to Be Relatively Constant Within an Industry