The common-size percent is computed by:
A) Dividing the analysis amount by the base amount.
B) Dividing the base amount by the analysis amount.
C) Dividing the analysis amount by the base amount and multiplying the result by 100.
D) Dividing the base amount by the analysis amount and multiplying the result by 1,000.
E) Subtracting the base amount from the analysis amount and multiplying the result by 100.

Question

Quizplus · Accepted Answer

The common-size percent is calculated by dividing the analysis amount by the base amount, and then multiplying the result by 100 to express it as a percentage. This allows for easy comparison of financial data over time or between companies.

The Common-Size Percent Is Computed By