If you are comparing your company's results with those of other companies in the industry,the process is called:
A)a horizontal analysis.
B)a trend analysis.
C)sensitivity analysis.
D)benchmarking.

Question

Quizplus · Accepted Answer

Benchmarking involves comparing a company's performance with that of other companies in the same industry. Therefore, this is the best choice for the given question. Horizontal analysis compares a company's financial data over multiple periods. Trend analysis involves identifying patterns in financial data over time. Sensitivity analysis tests how sensitive a financial model is to changes in assumptions. None of these processes specifically compare a company's results with those of other companies in the industry.

If You Are Comparing Your Company's Results with Those of Other