To Analyze Changes in a Company's Net Income Over the Last

question 23

Multiple Choice

To analyze changes in a company's net income over the last ten years,you should perform:

• A)horizontal analysis.
• B)vertical analysis.
• C)cross-section analysis.
• D)ratio analysis.

---

Definitions:

Average Total Cost

The complete expense of manufacturing (encompassing both fixed and variable expenditures) divided by the overall amount of goods produced.

Output

The quantity of goods or services produced by a firm, industry, or economy within a certain period.

Per-Unit Cost

The cost associated with producing one unit of a product, calculated by dividing total production costs by the number of units produced.

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, typically due to inefficiencies.