By using common size income statements, firms can determine how various expenses as a percentage of total sales changed from period to period

Returns from domestic and foreign investments may not be perfectly correlated because of different economic infrastructures and growth rates.

a. true b. false

Which of the following is not true regarding service department expenses?

a. Preparing a budget for a service department requires the same procedures as those used for production departments. b. Expenses of the service departments are allocated to production departments using a standard application rate. c. Production departments will consider allocated service department expenses in developing their budgets. d. Variances are not computed for expenses in service departments.