A. Vertical, common-size analysis creates financial statements in which each component is measured as a percentage of another element of the financial statements for that same period. A comparison between companies within the same industry is not vertical, common-size analysis.

B. Vertical, common-size analysis creates financial statements in which each component is measured as a percentage of another element of the financial statements for that same period. Vertical integration occurs when a company owns other companies that are suppliers or customers. Vertical integration is not related to vertical, common-size analysis.

C. Vertical, common-size analysis creates financial statements in which each component is measured as a percentage of another element of the financial statements for that same period. For example, all items on the balance sheet are measured as a percentage of total assets and all income statement items are measured as a percentage of total sales. Advertising expense being 2% of sales is such an example of vertical, common-size analysis.

D. Vertical, common-size analysis creates financial statements in which each component is measured as a percentage of another element of the financial statements for that same period. A comparison between periods for the same company is not vertical, common-size analysis. This is horizontal, common-size analysis.