Trend Analysis Is Analysis

question 10

Multiple Choice

Trend analysis is analysis

• A)of dollar changes and percentage changes over several years.
• B)in which all items are presented as a percentage of one selected item on a financial statement.
• C)in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
• D)of all ratios that increased or decreased over past accounting periods.

---

Definitions:

Total Costs

The total of all costs associated with manufacturing goods or providing services, encompassing both fixed and variable expenses.

Total Variable Costs

The overall expenses that change in proportion to the activity of a business, such as production volume or units of service delivered.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output within a specific period.

Total Variable Costs

The sum of all costs that vary directly with the level of production or output, excluding fixed costs.