The 'per cent of sales method' assumes that as sales grow, many income statement and balance sheet items grow at the same rate.

Question

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The per cent of sales method assumes that as sales grow, many income statement and balance sheet items like cost of goods sold, selling and administrative expenses, accounts receivable, and inventory, grow at the same rate. This allows for the use of historical data to estimate future financial performance.

The 'Per Cent of Sales Method' Assumes That as Sales