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:

Tradeoff

A scenario in which one characteristic or element is forfeited in exchange for acquiring a different characteristic or element.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose, often with the goal of minimizing waste and maximizing output.

Equality

A state of being equal, especially in status, rights, and opportunities.

Income Redistribution

A policy or process aimed at adjusting the distribution of income among a population to reduce inequality.