Comparing company results against industry benchmarks is often less useful than comparing actual results against budget amount.

Question

Quizplus · Accepted Answer

Comparing company results against industry benchmarks is useful for understanding the company's performance relative to its peers, which can offer insights into competitive positioning and potential areas for improvement. Comparing actual results against budget amounts is also important but serves a different purpose, focusing on internal financial management and planning accuracy.

Comparing Company Results Against Industry Benchmarks Is Often Less Useful