A useful tool to reduce the bias when comparing the performance of different sized companies is to do a horizontal analysis on each one.

Name: A useful tool to reduce the bias when comparing the performance of different sized companies is to do a horizontal analysis on each one.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data over time, not between different sized companies. Vertical analysis or common-size analysis is more appropriate for comparing companies of different sizes.

A Useful Tool to Reduce the Bias When Comparing the Performance