Financial ratios provide all of the following except: A) a framework for historical comparisons. B) a framework for external benchmarking. C) a means to set financial targets. D) a means to track financial goals. E) a calculation of the point at which sales revenues are sufficient to cover costs.

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Quizplus · Accepted Answer

Financial ratios do not provide a calculation of the point at which sales revenues are sufficient to cover costs. This is typically calculated using break-even analysis. Financial ratios do provide a framework for historical comparisons, external benchmarking, a means to set financial targets, and a means to track financial goals.

Financial Ratios Provide All of the Following except