Which of the Following Is the Definition of Vertical Analysis

question 60

Multiple Choice

Which of the following is the definition of vertical analysis?

• A)Vertical analysis is the practice of comparing a company with other companies that are leaders.
• B)Vertical analysis is the analysis in which percentages are computed by selecting a base year as 100% and expressing amounts for following years as a percentage of the base amount.
• C)Vertical analysis is the analysis of a financial statement that reveals the relationship of each statement item to a specified base, which is the 100% figure.
• D)Vertical analysis is the study of percentage changes in comparative financial statements.

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Definitions:

Obsolete Inventory

Stock that is no longer sellable due to being out of date, out of fashion, or superseded by newer products.

Materials Management

The process of planning, acquiring, moving, and controlling materials to efficiently produce goods or services.

Inbound Movement

The process of goods being transported into a specific area or facility, particularly in logistics and supply chain management.

Manufacturing Process

The series of operations involved in the production of goods, often involving assembly or the transformation of raw materials into finished products.