When utilizing the percentage of sales approach, managers need to determine the level of sales required based on the desired profit margin percentage.

Name: When utilizing the percentage of sales approach, managers need to determine the level of sales required based on the desired profit margin percentage.
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Question

Quizplus · Accepted Answer

The percentage of sales approach involves forecasting financial statements based on a projected sales level, not determining sales based on a desired profit margin.

When Utilizing the Percentage of Sales Approach, Managers Need to Determine