Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?
A)common size approach
B)linear method
C)percentage of net income method
D)adjusted sales method
E)percentage of sales approach

Question

Quizplus · Accepted Answer

The percentage of sales approach is a financial planning method where some account values vary in relation to expected sales. This method assumes that certain expenses or accounts, such as cost of goods sold or advertising, are directly related to the level of sales. These accounts are then calculated as a percentage of expected sales. This helps in forecasting the financial requirements of a company based on its expected sales volume.

Which One of the Following Is a Financial Planning Method