The percent-of-sales provides the most accurate and detailed method of forecasting necessary funds.

Question

Quizplus · Accepted Answer

The percent-of-sales method is a simple approach to forecasting that calculates future expenses as a percentage of projected sales revenue, assuming that expenses will stay proportional to the level of sales. However, it is not always accurate and can be affected by external factors. Other forecasting methods, such as regression analysis or expert opinion, may provide more accurate and detailed results.

The Percent-Of-Sales Provides the Most Accurate and Detailed Method of Forecasting