In performing a vertical analysis, the base for cost of goods sold is:
A) net sales.
B) total revenues.
C) total expenses.
D) gross profit.

Name: In performing a vertical analysis, the base for cost of goods sold is: A) net sales. B) total revenues. C) total expenses. D) gross profit.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

Cost of goods sold is typically calculated as a percentage of net sales, therefore net sales is the appropriate base for performing a vertical analysis of cost of goods sold.

In Performing a Vertical Analysis, the Base for Cost of Goods