In a vertical analysis, the base for cost of goods sold is

A) total selling expenses
B) sales
C) total expenses
D) gross profit

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement, allowing for easy comparison and analysis of different-sized companies.

Cost Of Goods Sold

Costs directly linked to the creation of products sold by a company, including expenses for materials, labor, and overhead.