In performing a vertical analysis, the base for sales returns and allowances is
A) sales revenue.
B) sales discounts.
C) net sales.
D) total revenues.

Question

Quizplus · Accepted Answer

The base for sales returns and allowances in a vertical analysis is net sales (total sales revenue less returns and allowances). This allows for a clearer understanding of the impact that returns and allowances have on overall sales revenue. Therefore, option C is the best choice.

In Performing a Vertical Analysis, the Base for Sales Returns