A is corrent. The requirement is to indicate the item most impacted by the use of the percentage of sales forecasting method. A is corrent because the percentage of sales forecasting method is based on the premises that most balance sheet and income statement accounts vary with sales. Accounts payable is one of those accounts.
B is incorrect because it describes an account that does not vary directly with sales.
B is incorrect because it describes an account that does not vary directly with sales.
D is incorrect because it describes an account that does not vary directly with sales.
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