When most of the elements of a financial plan are related to sales levels, the plan is:

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When most of the elements of a financial plan are related to sales levels, the plan is typically a percentage of sales model. This means that the financial plan is based on a percentage of the sales generated, and assumes that certain expenses will vary in proportion to sales. While this type of model can be effective in certain situations, it can also be problematic if sales levels are not accurately predicted. Therefore, it is important to carefully consider the assumptions underlying the percentage of sales model in order to create an effective financial plan.

When Most of the Elements of a Financial Plan Are