Prepare a Horizontal Analysis for 2017 Using the Information Provided

question 15

Essay

Prepare a horizontal analysis for 2017 using the information provided by Rat Rack Incorporated below.What do these numbers tell you about Rat Rack's 2017 year? Using 2015 as the base year for Rat Rack prepare the trend percentages for the three year period 2015-2016.What do these trend percentages indicate about Rat Rack?

Understand the utility of comparing relative frequencies, pie charts, and bar charts in analyzing nominal data.

Differentiate between data that contains information on one versus two variables.

Assess the impact of specific behaviors (e.g., staying up all night) on performance outcomes using percentages.

Understand the components that contribute to the cost of goods sold (COGS) in a business.

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Definitions:

Work in Process

An inventory account that represents goods that are in various stages of production but are not yet completed.

Materials Requisition

A document or electronic form used to request the transfer of materials from inventory for production or other internal use.

Time Tickets

Documents used to record the amount of time an employee spends on various tasks, commonly used for job costing.

Individual Job

A specific and unique task or set of tasks undertaken by a company, often used in job-order costing systems.