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

Question

Quizplus · Accepted Answer

The percent of sales method assumes that capacity increases can be made in small incremental steps, but in reality, capacity increases often require large investments in lumpy increments. Therefore, the best choice is A, which correctly identifies the method's reliance on incremental capacity increases while acknowledging that such increases are often lumpy in practice.

The Percent of Sales Method Relies on the Idea That