In preparing projected statements,which of these methods is recommended to project cost of goods sold and the expense items in the income statement?

Question

Quizplus · Accepted Answer

The percentage-of-sales method is recommended for projecting cost of goods sold and expense items in the income statement. This is because it projects expenses as a percentage of sales, which helps to maintain consistency in expenses ratios over time and to identify any changes in expense patterns.

In Preparing Projected Statements,which of These Methods Is Recommended to Project