How is horizontal analysis performed and how is it used in financial statement analysis?
Horizontal analysis is performed by computing the dollar and percentage change in a particular account balance from one year to the next. It should include a minimum of two years worth of data. It is used to analyze changes in accounts that occur from one year to the next. By performing horizontal analysis over a period of time, companies can spot certain trends and use those trends to build prediction models to forecast financial performance in the future. In addition, trend analysis can also be used to identify problem areas by looking for sudden or abnormal changes in accounts.
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Portofino Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:Activity Cost PoolsActivity RateSetting up batches$79.50per batchProcessing customer orders$71.31per customer orderAssembling products$7.06per assembly hourData concerning two products appear below: Product KJ22 Product KL37Number of batches69 12Number of customer orders20 9Number of assembly orders492 697How much overhead cost would be assigned to Product KJ22 using the activity-based costing system?
A. $10,385.22 B. $91,722.47 C. $157.87 D. $5,485.50 E. $16,640.87
A(n) ________ shows processing steps grouped according to which company department is responsible for performing them
Fill in the blanks with correct word
A firm's ______ refers to the percentage of the relevant market controlled by the firm
a. market power b. profitability c. market share d. market proportion e. market control
Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?
A. integrated contracts B. incomplete contracts C. ambiguous contracts D. implied contracts