In financial forecasting, why is the percentage of sales method valid for predicting future income statement and balance sheet items?

A$.$ Because sales revenue is easy to estimate accurately and does not change very much over time.

B$.$ Because only companies that are growing sales will survive in the long$-$run.

C$.$ Because a large portion of the cost of doing business is related to increasing sales.

D$.$ Because many of the critical items on the income statement and balance sheet are directly related to the level of sales volume a company achieves.