Comparing Operating Expenses as a Percentage of Sales Is an Example

question 75

Multiple Choice

Comparing operating expenses as a percentage of sales is an example of:

• A)Vertical analysis.
• B)Horizontal analysis.
• C)Diagonal analysis.
• D)Both vertical and horizontal analysis.

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Definitions:

Dollar Votes

The “votes” that consumers cast for the production of preferred products when they purchase those products rather than the alternatives that were also available.

Goods and Services

The physical items (goods) and activities or benefits (services) that are produced or provided to meet the needs and wants of consumers.

Entrepreneurial Ability

Refers to the capacity to innovate, introduce new products or services, improve processes, and manage business ventures effectively.

Economic Profit

The difference in overall financial returns and total operational expenditures, including both specific and assumed costs.