Horizontal Analysis Is a Technique for Evaluating Financial Statement Data

question 58

Multiple Choice

Horizontal analysis is a technique for evaluating financial statement data

• A)within a period of time.
• B)over a period of time.
• C)on a certain date.
• D)as it may appear in the future.

---

Definitions:

Absorption Costing

An accounting method where all manufacturing costs, both fixed and variable, are attributed to the production of products.

Variable Costing

A costing method in which variable manufacturing costs are included in product costs, while fixed manufacturing costs are treated as period costs.

Absorption Costing

An accounting method that assigns all manufacturing costs, both variable and fixed, to products, thereby impacting the inventory valuation on the balance sheet.

Net Operating Income

The profit a company makes from its operations, calculated as total revenue minus operating expenses, excluding taxes and interest.