It is commonly accepted that the industry average for a ratio is the ideal goal for a financial manager to achieve.

Question

Quizplus · Accepted Answer

The industry average may not always be the ideal goal for a financial manager as it can depend on the specific circumstances and objectives of the company. Financial managers need to consider various factors such as the company's size, industry, growth potential, financial health, and risk tolerance to set appropriate financial ratios and goals.

It Is Commonly Accepted That the Industry Average for a Ratio