The strict application of the percent-of-sales method of preparing the pro forma income statement assumes all costs are

Question

Quizplus · Accepted Answer

The percent-of-sales method assumes that all costs are variable, meaning they increase or decrease in proportion to changes in sales. This allows for the calculation of projected costs and expenses based on the expected level of sales. Therefore, the correct choice is D, variable.

The Strict Application of the Percent-Of-Sales Method of Preparing the Pro