QUESTION
Distinguish among the following bases of comparison: (1) intracompany, (2) industry averages, and (3) intercompany.
Intra company Industry Averages Inter company 1 Comparisons that are done within a company are helpful to detect changes in financial structures and trends Comparisons with industry averages such as S&P, Moodys provide information about a companys relative positioning within the industry Comparisons with companies such as samsung provide insight into a companys competitive position 2 A comparison of Apples current cash account with the previous years cash account shows either a rise or drop Apples financial data
can be compared with the averages for the IT compiled by financial ratings organizations such as S&P, Moodys Apples total sales for the year can be compared with the total sales of its competitors such as Samsung 3 A comparison of Apples year-end cash amount with the total assets at year-end shows the proportion of total assets in the form of cash
ANSWER:
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