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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 4: Cash Flow and Financial Planning
  5. Question
    Due to the No Fixed Costs Assumption Underlying the Strict
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Due to the No Fixed Costs Assumption Underlying the Strict

Question 99

Question 99

True/False

Due to the no fixed costs assumption underlying the strict percent-of-sales method, the use of cost and expense ratios generally tends to understate profits when sales are increasing and overstate profits when sales are decreasing.

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