Indirect planning assumptions are made about specific physical or economic items such as revenues, the market for product, or capital expenditures. Direct planning assumptions, on the other hand are usually based on financial ratios.

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The statement is incorrect. Direct planning assumptions are usually based on specific physical or economic items such as revenues, the market for product, or capital expenditures. Indirect planning assumptions, on the other hand, are based on financial ratios.

Indirect Planning Assumptions Are Made About Specific Physical or Economic