In Vertical Analysis,each Item Is Expressed as a Percentage Of

question 89

Multiple Choice

In vertical analysis,each item is expressed as a percentage of:

• A)Total expenses on the income statement.
• B)Net income on the income statement.
• C)Sales on the income statement.
• D)None of these answers is correct.

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Definitions:

Output

The amount of goods or services produced by a company, industry, or economy.

Function

A relation between a set of inputs and a set of permissible outputs, typically defined by a rule that every input is related to exactly one output.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output generated from those inputs.

Marginal Product

The increase in output that results from a one-unit increase in the input of a particular resource, holding all other inputs constant.