Accurately estimate the balances for lumpy assets

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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. If excess capacity exists, the percent of sales method will overestimate asset requirements. B. the percent of sales method consistently overestimates the forecasted balances of lump assets. C. The percent of sales method consistently underestimates the forecasted balances of lumpy assets. D. If fixed assets are utilized at full capacity currently, the percent of sales method will underestimate the forecasted fixed asset balance

Reference no: EM13971413

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