Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?
A) Cost of goods sold
B) Selling expense
C) Administrative expense
D) Interest expense
E) All of these items can be forecasted using the percentage-of-sales method.

Question

Quizplus · Accepted Answer

Interest expense is not directly related to sales and hence cannot be forecasted using the percentage-of-sales method.

Which Element in the Projected Income Statement CANNOT Be Forecasted