In a vertical analysis, the base for cost of goods sold is
A) total selling expenses
B) sales
C) total expenses
D) gross profit

Name: In a vertical analysis, the base for cost of goods sold is A) total selling expenses B) sales C) total expenses D) gross profit
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Question

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In vertical analysis, the base for cost of goods sold is usually taken as the total sales figure. This allows for a comparison of the cost of goods sold to the overall revenue generated by the business in a given period.

In a Vertical Analysis, the Base for Cost of Goods