What type of analysis looks down a budget column to assess values?

Vertical analysis is the appropriate method for assessing values within a single budget column by expressing each item as a percentage of a base figure. For example, in a financial statement, vertical analysis allows one to easily compare the size of various expenditures or income sources relative to total revenue or expenses. This method provides a clear picture of how each line item contributes to the overall financial status, enabling easier comparisons and analysis within the same period.

In contrast to vertical analysis, horizontal analysis involves comparing figures across different time periods to see trends and changes. Linear trend analysis focuses on identifying patterns in data over time, typically used to predict future values based on past data. Ratio analysis evaluates the relationships between different pieces of financial data, allowing for performance assessment relative to other metrics. Each of these serves distinct purposes in financial analysis, but vertical analysis specifically focuses on the representation of budget values within a single column, highlighting their proportions relative to a defined total.