Ratios are not considered as important to non-accounting functional areas of a business such as marketing, head of production and human resources.

Question

Quizplus · Accepted Answer

Ratios are important to non-accounting functional areas of a business as they provide valuable insights into company performance and help support informed decision-making across different departments. For example, marketing departments may use financial ratios to assess the profitability of different product lines, while production managers can use ratios to evaluate the efficiency of the manufacturing process. Similarly, human resources may use ratios to analyze employee productivity and assess the long-term financial sustainability of employee benefit programs.

Ratios Are Not Considered as Important to Non-Accounting Functional Areas