单选题

The following data is available on a company:

Metric	($ millions)
Total assets	145
Total revenues	282
Total expenses	241
Research & development expenses	12

Under a common-size analysis, the value used for research & development expenses is closestto:

A、 8.3%.
B、 4.2%.
C、 5.0%.

【正确答案】 B

【答案解析】

The appropriate base for a common-size income statement is revenue. As such, the value used for research & development expenses is $12 million÷S282 million × 100 = 4.25%.