To See How Costs Are Affecting Net Profit, Try Analyzing

question 5

Multiple Choice

To see how costs are affecting net profit, try analyzing the income statement by expressing each item on the income statement ________.

• A) As a percentage of sales
• B) As a percentage of profit
• C) As a percentage of costs
• D) As a percentage of operations
• E) As a percentage of assets

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Definitions:

Positive Message

Communication that conveys favorable, optimistic, or encouraging information or sentiments.

News Release

An official statement issued to newspapers, magazines, and other media for the purpose of providing information, an announcement, or making an official statement.

Customary Pattern

Established or habitual methods of behavior or operations typical within a particular context or environment.

Fair Adjustment

A reasonable modification or change made to rectify or balance a situation.