The base,or benchmark,on which all items on the income statement are compared is net sales.

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Net sales is typically used as the starting point or benchmark for calculating other items on the income statement, such as cost of goods sold, gross profit, operating expenses, and net income. This is because net sales represents the total amount of revenue earned by a company from its primary operations, before deducting any expenses or other costs. Therefore, all other items on the income statement are typically expressed as a percentage or ratio of net sales, making it a key metric for analyzing a company's financial performance.

The Base,or Benchmark,on Which All Items on the Income Statement