Which of the following situations severely limits the use of industry norms as standards of comparison?
A)The fact that little information exists on industry norms
B)The existence of conglomerates
C)The presentation of segmented information
D)A downward turn in the economy

Question

Quizplus · Accepted Answer

The existence of conglomerates makes it difficult to compare companies in the same industry because the conglomerate may have multiple divisions or subsidiaries that operate in different industries, making industry norms less applicable as a standard of comparison.

Which of the Following Situations Severely Limits the Use of Industry