Which financial planning assumption does not have supporting detail?
A)Sales growth is based on the inflation rate.
B)Sales growth is based on the industry average sales growth rate.
C)Net income is based on the average net profit margin for the industry.
D)Operating expenses are 70% of the current year's sales.

Question

Quizplus · Accepted Answer

Operating expenses being 70% of the current year's sales is an arbitrary figure without supporting detail or rationale, unlike the other options which are based on external benchmarks or averages.

Which Financial Planning Assumption Does Not Have Supporting Detail