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Definitions from the WebCommon SizeDefinition:Common size refers to a financial analysis technique used to compare financial statements of different companies or different time periods. It involves expressing the numbers in the financial statement as a percentage of a common base, usually the total sales or revenues. Sense 1: Financial AnalysisNounCommon size analysis allows easy comparison of financial statements of different companies by converting the numbers into percentages of a common base. This helps in identifying trends, analyzing the financial health, and making informed decisions. Example sentence:In the common size analysis of the income statement, we observed that salaries and wages constituted 15% of the total expenses. Sense 2: LocalAdjectiveIn the local context, common size refers to a standard or typical size that is widely available or popular in a specific area or community. Example sentence:Their bakery is well-known for selling common size bread loaves that are loved by the local residents. Related Products: | ||||
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