The percent of sales method does not accurately estimate the balances for lumpy assets. Which of
the following statements best describes the possible errors?
A) The percent of sales method consistently overestimates the forecasted balances of lumpy
assets.
B) If fixed assets are utilized at full capacity currently, the percent of sales method will
underestimate the forecasted fixed asset balance.
C) If excess capacity exists, the percent of sales method will overestimate asset requirements.
D) The percent of sales method consistently underestimates the forecasted balances of lumpy
assets.
C
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Which one of the following statements is true?
A) Income manipulation is difficult under LIFO. B) Accounting principles do not require that the inventory cost flow approximate the physical flow of goods. C) Companies may use LIFO for tax purposes and FIFO in the financial statements. D) In periods of declining prices, LIFO will result in the payment of lower income taxes.
Misappropriation of assets can involve various schemes: expense reimbursement fraud, lapping, and payroll fraud. Explain each and give an example
According to the Core Principles of Professional Selling, the salesperson should always leave immediately when a prospect says "No, I do not need your product."
Answer the following statement true (T) or false (F)
A well prepared master budget will provide the following benefits:
a. A means of promoting employee participation. b. A means of evaluating employee performance. c. A well prepared master budget will provide all of the above benefits. d. A guide to allocate resources.