By using common size income statements, firms can determine how various expenses as a percentage of total sales changed from period to period.

Name: By using common size income statements, firms can determine how various expenses as a percentage of total sales changed from period to period.
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Question

Quizplus · Accepted Answer

Common size income statements express every line item as a percentage of total sales, allowing firms to easily see changes in the proportion of expenses to sales from one period to the next.

By Using Common Size Income Statements, Firms Can Determine How