Author Question: If a firm determines it can use the percentage-of-sales method and it follows the procedure ... (Read 126 times)

a0266361136 · **on:** Jul 6, 2018

If a firm determines it can use the percentage-of-sales method and it follows the procedure described in the textbook.

then the net result is that each expense item on its income statement (with the exception of those items that can be individually forecast) will grow at the same rate as sales. This approach is called the ________.
A) continuous percentage method of forecasting
B) stable fraction method of forecasting
C) regular proportion method of forecasting
D) constant ratio method of forecasting
E) steady percentage method of forecasting

Question 2

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

A) Provides a firm total control over its foreign operations
B) Ability to generate revenue
C) Exporting is a relatively inexpensive way for a firm to become involved in foreign markets.
D) The exporting company's customers put up most of the capital needed to establish the export operation.
E) Exporting involves very little effort on the part of a firm.