A comparison of a company's performance with that of competitors is known as
A)vertical analysis
B)horizontal analysis
C)intracompany comparisons
D)intercompany comparisons

Question

Quizplus · Accepted Answer

Intercompany comparisons involve comparing a company's performance with that of competitors in the same industry, whereas intracompany comparisons involve comparing a company's performance over time. Vertical analysis involves analyzing a company's financial statements by expressing each item as a percentage of a base amount, while horizontal analysis involves comparing financial data over multiple periods to identify trends and changes. Therefore, the best choice is intercompany comparisons.

A Comparison of a Company's Performance with That of Competitors