Percentage of sales models usually assume that costs, fixed assets, and working capital all increase...
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Percentage of sales models usually assume that costs, fixed assets, and working capital all increase at the same rate as sales. When do you think that these assumptions do not make sense? Would you feel better using a percentage of sales model for shortterm or longterm planning?
Percentage of sales models usually assume that costs, fixed assets, and working capital all increase at the same rate as sales. When do you think that these assumptions do not make sense? Would you feel better using a percentage of sales model for shortterm or longterm planning?
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