In performing a vertical analysis for a service company, the base for salaries expense is
A) total selling expenses.
B) revenues.
C) total revenues.
D) total expenses.

Question

Quizplus · Accepted Answer

In vertical analysis, each item is expressed as a percentage of a base amount. For a service company, salaries expense is typically analyzed as a percentage of total revenues.

In Performing a Vertical Analysis for a Service Company, the Base