Which of the Following Statements Is True Regarding Vertical Analysis

question 188

Multiple Choice

Which of the following statements is true regarding vertical analysis?

• A)Cross-sectional analysis compares financial data for a single entity over time.
• B)Common size financial statements are used to compare companies of different sizes.
• C)Trend analysis compares a company's financial data to industry averages.
• D)Time series analysis is effective for comparison of different companies over time.

---

Definitions:

Economies of Scope

Cost advantages that a business experiences when it increases the variety of products or services it offers.

Customer Value Chain

A series of steps a company takes to deliver a product or service to the customer, focusing on adding value at each stage to meet customer needs.

Selling Products Globally

The process of marketing and distributing goods or services outside of the company's home country, often involving considerations of cultural differences, legal requirements, and logistics.

Multi-business-unit Companies

Organizations that operate across different industries or markets, managing a portfolio of businesses as separate units under one overarching corporate umbrella.