To see if a company's cost of sales is increasing proportionately with sales an analyst would use:
A)raw financial data.
B)common sized analysis.
C)trend analysis.
D)prospective analysis.

Question

Quizplus · Accepted Answer

Common sized analysis allows an analyst to compare different components of a company's financial statements as a percentage of sales, making it a useful tool to see if the cost of sales is increasing proportionately with sales.

To See If a Company's Cost of Sales Is Increasing