All of the Following Statements About Vertical Analysis Are True

question 88

Multiple Choice

All of the following statements about vertical analysis are true except

• A)vertical analysis is also called common size analysis.
• B)amounts on the statement of income are expressed as a percentage of sales.
• C)vertical analysis shows the relative size of each item in the statement of financial position.
• D)vertical analysis is also called trend analysis.

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Definitions:

Price Fixing

A practice where businesses agree on the selling price of their products or services, typically to prevent competition and increase profits, which is often illegal.

Geographical Pricing

A pricing strategy where the price of a product varies depending on the geographical location or market.

Predatory Pricing

A competitive strategy in which a business sets extremely low prices to eliminate competition and monopolize the market.

Bait and Switch

A deceptive marketing strategy where a customer is lured by the advertisement of a low-priced item but then is encouraged to buy a more expensive one.