The assets-to-sales relationship tends to be relatively constant within an industry, allowing for a(n) _____ technique to be utilised in projecting asset requirements.
A)percentage-of-sales
B)bootstrap forecasting
C)asset turnover ratio
D)discounted sales

Question

Quizplus · Accepted Answer

The percentage-of-sales technique uses the historical relationship between assets and sales to project future asset requirements. As stated in the question, this relationship tends to be relatively constant within an industry, making this technique a reliable choice. The other options listed (bootstrap forecasting, asset turnover ratio, and discounted sales) are not directly related to projecting asset requirements based on historical data.

The Assets-To-Sales Relationship Tends to Be Relatively Constant Within an Industry