A form of analysis in which each item on a report is shown as a percent of net sales is called a vertical analysis of the income statement.

Name: A form of analysis in which each item on a report is shown as a percent of net sales is called a vertical analysis of the income statement.
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Vertical analysis, also known as common-size analysis, expresses each line item on a financial statement as a percentage of a base number, usually net sales for the income statement.

A Form of Analysis in Which Each Item on a Report