Common-Size Analysis Requires the Analyst to Be Aware That Percentages

question 7

Multiple Choice

Common-size analysis requires the analyst to be aware that percentages can change because of all of the following except:

• A) changes in expenses in the numerator independent of changes in sales
• B) changes in sales independent of changes in expenses
• C) interaction effects between the numerator and denominator
• D) All of these are possible explanations.