The ________ is a popular approach for evaluating profitability in relation to sales by expressing each item on the income statement as a percent of sales.
A) retained earnings statement
B) source and use statement
C) common-size income statement
D) profit and loss statement

Question

Quizplus · Accepted Answer

The common-size income statement expresses each item on the income statement as a percentage of sales, making it a popular approach for evaluating profitability in relation to sales. The other options listed (retained earnings statement, source and use statement, and profit and loss statement) do not provide this type of analysis.

The ________ Is a Popular Approach for Evaluating Profitability in Relation