Question $6$

Which of the following items is least likely to be forecasted as a percentage of sales?

Cost of goods sold.

R&D expense.

SG&A expense.

Interest expense.

Receivable.

Question $7$

The terminal period, which is the end of the finite forecasting horizon, should begin when our forecasts meet which of the following

conditions?

I. Sales settle down to a constant growth rate.

II$.$ Margins remain constant.

III. Turnover ratios remain constant.

IV$.$ Financial leverage ratios remain constant.

I only.

I and II$.$

I and III.

I, II$,$ and III.

I, II$,$ III, and IV$.$