The percentage- of- sales method should be used for computing the cost of goods sold and additional expense items in projected income statements.

Question

Quizplus · Accepted Answer

The percentage-of-sales method is a simple and widely used method for estimating the cost of goods sold and additional expense items in projected income statements. It is based on the assumption that these costs are a fixed percentage of sales. This method is often used when detailed information about the company's costs is not available.

The Percentage- Of- Sales Method Should Be Used for Computing