A Financial Statement Showing Each Item on the Statement as a Percentage

question 105

Multiple Choice

A financial statement showing each item on the statement as a percentage of one key item on the statement, called the base, is referred to as:

• A)common-size statement.
• B)trend analysis.
• C)horizontal analysis.
• D)benchmarking.

---

Definitions:

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and fluctuating expenses.

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Total Fixed Cost

The aggregate of expenses that do not vary with changes in production levels or outputs.

Total Variable Cost

The total expenses that change in proportion to the production output or sales volume of a company.