Horizontal Analysis Examines Trends in a Company

question 37

Multiple Choice

Horizontal analysis examines trends in a company

• A)Over time.
• B)Between income statement accounts in the same year.
• C)Between balance sheet accounts in the same year.
• D)Between income statement and balance sheet accounts in the same year.

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Definitions:

Higher Profits

Increased earnings resulting from a rise in revenue, a decrease in costs, or both.

Resource Cost

The total cost associated with the utilization of resources such as labor, capital, and materials in the production of goods and services.

Marginal Cost

Marginal cost is the additional cost incurred from producing one more unit of a good or service. It varies depending on the level of production and can influence pricing and production decisions.

Industry Supply Curve

A graphical representation showing the total quantity of a good or service that producers in an industry are willing to supply at different price levels.