When utilizing the percentage of sales approach, managers:
A) estimate company sales based on a desired level of net income and the current profit margin.
B) consider only those assets that vary directly with sales.
C) consider the current production capacity level.
D) can project net income but not net cash flows.
E) assume all liability accounts will remain constant.

Question

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The Answer of When utilizing the percentage of sales approach, managers:
A) estimate company sales based on a desired level of net income and the current profit margin.
B) consider only those assets that vary directly with sales.
C) consider the current production capacity level.
D) can project net income but not net cash flows.
E) assume all liability accounts will remain constant.

When Utilizing the Percentage of Sales Approach, Managers