Trend Percentage Analysis • Trend Percentage Analysis is a technique of performance measurement and evaluation where the performance of the current year is compared to that of a base year and the direction of the results are analyzed. • The movement of the results can be interpreted as a positive or favorable trend or as a negative or unfavorable trend. • Favorable trends mean increase in revenues and decrease in costs and are hence subjective in nature. Unfavorable trends mean decrease in revenues and increase in costs and are also subjective in nature. • Trend analysis helps in evaluation of repetitive behavior as well as evaluation of effectiveness of strategies implemented by allowing analysis of performance over time. • The following formula is used to calculate trend percentage for each year: Trend Percents = Current Year Figure / Base Year Figure &*#x00A0;100 To Determine: Trend Percents for each year and state if trends are favorable or unfavorable.

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Chapter 17, Problem 3E

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Introduction:

Trend Percentage Analysis

• Trend Percentage Analysis is a technique of performance measurement and evaluation where the performance of the current year is compared to that of a base year and the direction of the results are analyzed.

• The movement of the results can be interpreted as a positive or favorable trend or as a negative or unfavorable trend.

• Favorable trends mean increase in revenues and decrease in costs and are hence subjective in nature. Unfavorable trends mean decrease in revenues and increase in costs and are also subjective in nature.

• Trend analysis helps in evaluation of repetitive behavior as well as evaluation of effectiveness of strategies implemented by allowing analysis of performance over time.

• The following formula is used to calculate trend percentage for each year:

$Trend Percents = Current Year Figure / Base Year Figure &*#x00A0;100$

To Determine:

Trend Percents for each year and state if trends are favorable or unfavorable.

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