(Learning Objective 1) Which of the following provides a year-to-year comparison of a company’s performance in two different years?
- a. Horizontal analysis
- b. Vertical analysis
- c. Ratio analysis
- d. Time study analysis
To identify: The appropriate answer for the given statement.
Answer to Problem 1QC
Option a. A year to year comparison of a company’s performance in two different years is provided by horizontal analysis.
Explanation of Solution
The methods of analyzing company’s performance by analyzing financial performance are:
- 1. Horizontal analysis
- 2. Vertical analysis
- 3. Ratio analysis
a.
Horizontal analysis is the correct option because horizontal analysis analyzes the year to year performance of the companies in two different years.
b.
Vertical analysis is not the correct option because vertical analysis compares the companies of different size and considers only one-year analysis.
c.
Ratio analysis is not the correct option because ratio analysis analyses the relationship between the components of the financial performance.
d.
Time study analysis is not the correct option because time study analysis the purposes of your own.
Want to see more full solutions like this?
Chapter 14 Solutions
Managerial Accounting (5th Edition)
- A firm sells 2,800 units of an item each year. The carrying cost per unit is $3.26 and the fixed costs per order are $74. What is the economic order quantity? (Please round units to the nearest whole number) need help mearrow_forwardCalculate the labor variance?arrow_forwardFinancial accounting questionarrow_forward
- During FY 2005 T-REX Manufacturing had total manufacturing costs are $418,000. Their cost of goods manufactured for the year was $448,000. The January 1, 2006 balance of the Work-in-Process Inventory is $49,000. Use this information to determine the dollar amount of the FY 2005 beginning Work-in-Process Inventory. Answerarrow_forwardCooper Audio Systems produces car sound systems. Estimated sales (in units) are 45,000 in April, 38,000 in May, and 36,500 in June. Each unit is priced at $75. Cooper wants to have 40% of the following month's sales in ending inventory. That requirement was met on April 1. Each sound system requires 4 speakers and 10 feet of wiring. Speakers cost $6 each, and wiring is $0.50 per foot. Cooper wants to have 25% of the following month's production needs in ending raw materials inventory. On April 1, Cooper had 30,000 speakers and 95,000 feet of wire in inventory. What is Cooper's expected sales revenue for May?arrow_forwardGeneral accounting questionarrow_forward
- Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning