To Compute Trend Percentages the Analyst Should

question 194

Multiple Choice

To compute trend percentages the analyst should:

• A) Compare amounts to a competitor.
• B) Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number.
• C) Subtract the analysis period number from the base period number.
• D) Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100.
• E) Compare amounts across industries using Dun and Bradstreet.

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Definitions:

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead allocated for actual production.