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 using 2016 sales as base.

Question

Want to see the full answer?

Answer 1

Question

Chapter 17, Problem 4QS

To determine

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 using 2016 sales as base.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The following labor standards have been established for a particular product: Standard hours per unit of output 6.3 hours Standard variable overhead rate $18.65 per hour The following data pertain to operations concerning the product for the last month: Actual hours 8,600 hours Actual total variable overhead cost $157,380 Actual output 1,100 What is the variable overhead efficiency variance for the month? a. $30, 561 U. b. $31, 146 U. c. $28, 136 U. d. $2, 426 U.

Platz Company makes chairs and planned to sell 3, 200 chairs in its master budget for the coming year. The budgeted selling price is $45 per chair, variable costs are $15 per chair, and budgeted fixed costs are $40,000 per month. At the end of the year, it was determined that Platz actually sold 3,100 chairs for $145,700. Total variable costs were $50,375 and fixed costs were $38,000. The volume variance for sales revenue was: a. $4,500 unfavorable b. $100 unfavorable c. $4,500 favorable d. $1,700 favorable

The contribution margin ratio is calculated as how? a) Gross margin divided by sales b) Operating income divided by sales c) Contribution margin divided by sales d) Net income divided by sales