To Compute Trend Percentages the Analyst Should

question 139

Multiple Choice

To compute trend percentages the analyst should:

• A)Select a base period,divide analysis period amount by the base period amount and multiply that amount by 100.
• B)Subtract the analysis period number from the base period number.
• C)Subtract the base period amount from the analysis period amount,divide the result by the analysis period amount,then multiply that amount by 100.
• D)Compare amounts across industries using Dun and Bradstreet.
• E)Compare amounts to a competitor.

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Definitions:

Material Cost

The expense incurred by a company to purchase or produce the raw materials used in manufacturing a product.

Fixed Costs

Fixed expenses unaffected by variations in production volume or sales figures, like rental fees, salary payments, and insurance costs.

Graphical Approach

A method of solving problems or representing data using diagrams, charts, or graphs.

CVP Analysis

Cost-Volume-Profit Analysis, a management accounting methodology used for understanding the relationship between costs, volumes of sales, and profit.