Expressing Each Item Within a Financial Statement as a Percentage

question 103

Short Answer

Expressing each item within a financial statement as a percentage of a base amount is called ______________ analysis.

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Definitions:

Income

The amount of revenue that remains after deducting the costs, expenses, and taxes related to earning that revenue.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one is "breaking even."

Contribution Margin

The amount remaining from sales revenue after all variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of production or sales activity within a business.