Rule-of-thumb measures are the most precise and best standards of comparison in financial performance evaluation.

Question

Quizplus · Accepted Answer

Rule-of-thumb measures, such as benchmarking against industry averages, can provide some general guidance but they may not be the most precise or accurate measures of financial performance evaluation. More specific and customized measures are often necessary to fully evaluate a company's performance.

Rule-Of-Thumb Measures Are the Most Precise and Best Standards of Comparison