When Performing Vertical Analysis the Base Amount for Administrative Expense

question 63

Multiple Choice

When performing vertical analysis the base amount for administrative expense is generally

• A) administrative expense in a previous year.
• B) net sales.
• C) gross profit.
• D) fixed assets.

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Definitions:

Quantity

The amount or number of material or immaterial things considered as a unit.

Sum

The total obtained by adding together a set of numbers or quantities.

Restriction

A limitation or condition that confines or restricts something's scope or action.

Quantity

The amount or number of a material or item required or available, often used in inventory management and production planning.