Which of the Following Would Not Be Considered an Analytical

question 69

Multiple Choice

Which of the following would not be considered an analytical procedure?

• A) calculate the gross profit ratio and compare it to the industry figure
• B) compare current year's operating expenses to prior year's
• C) compare current year's working capital to prior year's
• D) divide sales commissions by sales and compare the results to the established
• Commission rate
• E) compare the per unit price on a sales invoice to the master price list

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Definitions:

Comparative Advantage

is an economic principle that describes how countries or individuals can gain by specializing in the production of goods they can produce more efficiently compared to others.

Tariffs

Taxes on imports or exports between sovereign states.

Quotas

Restrictions set by a government on the amount of a particular good that can be imported or produced within a certain timeframe.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.