Which of the Following Statements About Trend Analysis Is Correct

question 66

Multiple Choice

Which of the following statements about trend analysis is correct?

• A)Time-series analysis is an example of trend analysis.
• B)Trend data are always in dollars.
• C)Trend analysis is also known as vertical analysis.
• D)Common-size analysis is an example of trend analysis.

---

Definitions:

Conversion Costs

Costs in manufacturing that include both direct labor and overhead costs, specifically associated with the conversion of raw materials into finished goods.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, depreciation, and maintenance, not directly tied to production.

Conversion Costs

The sum of labor costs and overhead expenses related to the transformation of materials into finished products.