When using either a trend analysis or a ratio analysis, it is assumed that ________ will remain the same.

Question

Quizplus · Accepted Answer

C)Both a trend analysis and a ratio analysis assume that productivity remains about the same. For example, when using a ratio analysis, an assumption is made that you cannot motivate a salesperson to produce more than he or she has sold in the past. With a trend analysis, historical productivity trends are used and are the basis for predicting the future.

When Using Either a Trend Analysis or a Ratio Analysis