Concept introduction:
Financial Statement analysis is done using the components of financial statement. These components are
Common Size Financial Statement: Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.
To indicate:
The Common Size % for Cost of Goods Sold.
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Managerial Accounting
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