A basis of comparison for financial ratios that is determined from an industrial sector, historical data, direct competitors or pro forma statements is called a

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A basis of comparison for financial ratios that is determined from an industrial sector, historical data, direct competitors or pro forma statements is called a benchmark. This helps in evaluating the company's financial performance against a standard set by the industry or historical data. The other options are not appropriate as performance standard refers to the expected level of performance, financial trendline is a graphical representation of financial data, comparable refers to a company or stock that is similar to another in various aspects and hurdle rate is a minimum rate of return required by an investor or company for undertaking an investment or project.

A Basis of Comparison for Financial Ratios That Is Determined