This control technique provides an information framework for historical comparisons within the firm and for external benchmarking relative to industry performance:
A)Balanced scorecard
B)Financial ratios
C)Capital budgeting
D)Economic design
E)Performance appraisals

Question

Quizplus · Accepted Answer

Financial ratios provide a standardized way to compare a firm's performance over time and against industry averages. This can help identify areas where the firm is doing well and where improvements need to be made. The other options listed may be useful for managing different aspects of a company's performance, but they do not provide the same level of comparability as financial ratios.

This Control Technique Provides an Information Framework for Historical Comparisons