The Two Major Techniques for Financial Analysis Are

question 31

Multiple Choice

The two major techniques for financial analysis are

• A) horizontal analysis and circular analysis.
• B) receivable analysis and profitability analysis.
• C) vertical analysis and budget analysis.
• D) common-size analysis and ratio analysis.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to the customer.

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire factory, used to allocate overhead costs to products.

Machine-Hours

A measure of the amount of time a machine is operated, used in the calculation of manufacturing costs and allocation.

Manufacturing Cost

The total cost incurred by a company to produce a specific quantity of a product, including materials, labor, and overhead.