The 'per cent of sales method' relies on the idea that capacity increases are ________, even though in practice such increases are ________.
A)incremental, incremental
B)lumpy, lumpy
C)lumpy, incremental
D)incremental, lumpy

Question

Quizplus · Accepted Answer

The 'per cent of sales method' assumes that capacity increases are incremental, meaning they happen smoothly as sales increase. However, in reality, capacity increases are often lumpy, occurring in large chunks due to significant investments in new facilities or equipment.

The 'Per Cent of Sales Method' Relies on the Idea