1. Which of the following statements about the percent-of-sales method of financial forecasting is true?
A. It is the least commonly used method of financial forecasting.
B. It is a much more precise method of financial forecasting than a cash budget would.
C. It is not accepted for accounting.
2. Safety stock:
A. is used to deal with the two most limited assumptions of the EOQ model.
B. must be higher the more certain are the inflows and outflows from the inventory.
C. will be lower when costs of carrying additional inventory are low.
D. does not affect average inventory levels.