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

Question

Quizplus · Accepted Answer

Common sized analysis involves expressing financial statement items as a percentage of a base figure, such as sales, which allows for comparison of cost of sales relative to sales over time.

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