A typical way common size income statement is constructed is by dividing all expense items in an income statement by profit.

Name: A typical way common size income statement is constructed is by dividing all expense items in an income statement by profit.
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A common size income statement is constructed by expressing each item in the income statement as a percentage of a chosen base item (usually revenue/sales). Expenses are not divided by profit, but rather by the chosen base item.

A Typical Way Common Size Income Statement Is Constructed Is