what is the base of a sales trend analysis
Base of trend analysis refers to the year which one is putting as a base or we can say standard for comparing the further year Trend.
Percentage of Base year is always taken as 100. The remaning years are then analysed upon the Base year decided.
for e.g. Let For Sales Trend Analysis following sale data provided
2014- $50,000 2015-$60000 2016-$45,000 (Base year is 2014)
Thus on the basis of base year given sale of 2015 & 2016 will be compared. i.e Base year is 100, the 2015 shows 20% rise so 120. similarly 2016 show downfall by 10% compare to 2014 so 90.
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