Which of the following statements is true?
A)It is unnecessary to analyze operating expenses over which management exercises discretion.
B)Impairment charges do not need to be analyzed since they are generally a non-recurring expense.
C)A good way to improve operating profit is to cut repairs and maintenance costs as much as possible.
D)Operating expenses can be easily analyzed by preparing a common-size income statement.

Question

Quizplus · Accepted Answer

A common-size income statement, which expresses each item as a percentage of sales, simplifies the analysis of operating expenses by allowing for easy comparisons across periods and companies.

Which of the Following Statements Is True