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Author Question: The AFN method assumes that the forecasted items could be estimated as a percentage of sales. This ... (Read 95 times)

blkth103

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Question 1

The AFN formula would be appropriate if, in a regression of each asset and spontaneous liability on sales, the regression line was linear and passed through the origin.

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Question 2

The AFN method assumes that the forecasted items could be estimated as a percentage of sales. This implies, for example, that if you plotted a graph of inventories versus sales, the regression line would be linear or curvilinear.

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Marked as best answer by blkth103 on Aug 7, 2023

mllong

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blkth103

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Reply 2 on: Aug 7, 2023
Excellent


lkanara2

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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