List of top Accountancy Questions on Common Size Statements

The common size statements are useful, both, in intra-firm comparisons over different years and also in making inter-firm comparisons for several years. This analysis is also known as:

While preparing Common Size Statement of Profit and Loss of a company, each item is expressed as a percentage of ________.

From the following information of KL Ltd., prepare a Common Size Statement of Profit and Loss for the year ended 31st March, 2024:

Statement of Profit Elements

Particulars	Amount (₹)
Revenue from Operations	20,00,000
Other Income	5,00,000
Cost of Materials Consumed	12,00,000
Employee Benefit Expenses	6,00,000
Depreciation	2,00,000

What do you understand by common size statement?

State two objectives of common size statement.