Among the models followed to develop a financial plan, the following is the simplest:

Question

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The percentage of sales model is the simplest and most commonly used model for developing a financial plan. It involves projecting future revenues and/or expenses as a percentage of current or projected sales. This model is easy to use and understand, making it ideal for small businesses with limited financial resources or expertise. The other models listed, regression and computer simulation, are more advanced and complex, typically used by larger corporations with more financial data and resources.

Among the Models Followed to Develop a Financial Plan, the Following