Final answer:
False, ratio analysis does not assume that productivity will increase over time.
Step-by-step explanation:
False. Ratio analysis does not assume that productivity will increase over time. Ratio analysis is a financial analysis method that involves calculating and comparing various ratios to evaluate a company's financial performance. It focuses on analyzing the relationship between different financial statement items, such as sales, expenses, assets, and liabilities. While trend analysis looks at changes over time, ratio analysis is based on the current financial information and does not assume future productivity growth.