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Commerce · Q768

Costing

Graduate and Post Graduate · Commerce · question 768

Q768

Calculating ratio for industry analysis implies all of the following except,

A.
it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry
B.
it helps to assess the financial standing of the firm as compared to other firms in the same industry
C.
it is not possible to standardise the accounting data of various firms following varied accounting policies
Answer
D.
comparison of average of the industry with those of the firm

Answer: Option C

Solution

Answer: Option C
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