In vertical analysis, the base amount for salaries and wages expense is generally
A) net sales.
B) salary & wages expense in a previous year.
C) gross profit.
D) net income.

Question

Quizplus · Accepted Answer

The base amount for vertical analysis is generally the total net sales for the period being analyzed. This allows for a comparison of each expense category as a percentage of sales, which can provide useful insights into the company's operations and profitability.

In Vertical Analysis, the Base Amount for Salaries and Wages