Statements That Are Often Used to Compare Different Size Businesses

question 154

Multiple Choice

Statements that are often used to compare different size businesses are called:

• A)comparative analysis.
• B)cash flow analysis.
• C)common-size statements.
• D)horizontal analysis.

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Definitions:

Activity Declines

A reduction in the level of operations, production, or business activities.

Activity Variance

measures the difference between the actual costs incurred and the budgeted costs based on the actual level of activity.

Actual Revenue

The real income that a company receives from its business activities, measured over a specific period.

Static Planning Budget

A budget for a specific amount of sales or production that does not change as volume changes.