Common-size analysis requires the analyst to be aware that percentages can change because of all of the following except:
A) changes in expenses in the numerator independent of changes in sales
B) changes in sales independent of changes in expenses
C) interaction effects between the numerator and denominator
D) All of these are possible explanations.

Question

Quizplus · Accepted Answer

All of the options A, B, and C are possible explanations for changes in percentages in common-size analysis, so none of them is an exception.

Common-Size Analysis Requires the Analyst to Be Aware That Percentages