The percent-of-sales method of forecasting makes which of the following assumptions?
A)The inventory turnover will remain the same during the forecast period.
B)The profit margin will remain constant during the forecast period.
C)Cash,as a percent of sales,will remain constant throughout the forecast period.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

The percent-of-sales method assumes that various financial statement items, such as inventory, profit margin, and cash, will remain constant as a percentage of sales during the forecast period.

The Percent-Of-Sales Method of Forecasting Makes Which of the Following