Comparison with industry averages for diversified companies has
A) less relevance than intracompany and intercompany comparisons.
B) more relevance than intracompany and intercompany comparisons.
C) the best results for investors.
D) the same amount of relevance as intracompany and intercompany comparisons.

Question

Quizplus · Accepted Answer

Comparing diversified companies with industry averages is less relevant because diversified companies operate in multiple industries, making it difficult to find a meaningful average for comparison. Intracompany (comparing different periods within the same company) and intercompany (comparing similar companies within the same industry) comparisons are more relevant for analysis.

Comparison with Industry Averages for Diversified Companies Has