Guidelines (rules of thumb)are developed from
A)Past experience
B)Industry statistics
C)Analysis of competitors
D)Relations between financial items
E)Past experience and relations between financial items

Question

Quizplus · Accepted Answer

Guidelines or rules of thumb are developed based on past experience, which serves as a valuable reference point for decision-making in the future. Industry statistics and analysis of competitors may provide helpful insights, but ultimately guidelines are derived from what has worked well in the past. Relations between financial items may also be taken into account, but past experience is the most important factor. Therefore, choice A is the best answer.

Guidelines (Rules of Thumb)are Developed from