When choosing a benchmark, it is best to use ________.
A) numerous firms in the same industry
B) your number one competitor
C) the aspirational firm you wish to emulate
D) standards established by the FASB

Question

Quizplus · Accepted Answer

When choosing a benchmark, it is best to use numerous firms in the same industry to get an accurate comparison of performance measures. Using only one firm or aspirational firm may not provide a realistic benchmark, and using FASB standards may not be relevant or applicable to the specific industry or company being analyzed.

When Choosing a Benchmark, It Is Best to Use ________