Financial ratios provide all of the following EXCEPT:
A) a calculation of the breakeven quantity.
B) a means to track financial goals.
C) a framework for external benchmarking.
D) a means to set financial targets.
E) a framework for historical comparisons.

Question

Quizplus · Accepted Answer

Financial ratios are used for tracking financial goals, external benchmarking, setting financial targets, and making historical comparisons. They do not directly calculate the breakeven quantity, which is determined through cost-volume-profit analysis.

Financial Ratios Provide All of the Following EXCEPT