An analytical tool that measures a company's performance against a predetermined standard is a/an
A)benchmark comparison analysis.
B)profitability analysis.
C)time-series analysis.
D)common size statement.

Question

Quizplus · Accepted Answer

Benchmark comparison analysis is a tool that compares a company's performance with that of its competitors or industry standards. It enables a company to identify strengths and weaknesses, and to make necessary changes to improve performance. Profitability analysis, time-series analysis, and common size statement are also analytical tools, but they do not involve comparing a company's performance against a predetermined standard.

An Analytical Tool That Measures a Company's Performance Against a Predetermined