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