Which of the following is a benefit of a common-size income statement?

Question

Quizplus · Accepted Answer

A common-size income statement expresses each income statement item as a percentage of sales. This allows analysts to compare companies of different sizes and to see how much of a firm's sales were used to cover different expenses. By analyzing the changes in expense proportions over time, an analyst can determine whether a company has improved efficiency or profitability.

Which of the Following Is a Benefit of a Common-Size