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1. Past ratios – used to show whether the change in business performance is better, same or worse than in the past.
2. Average industry ratios – these indicate a business competitiveness in the industry in which it operates in.
3. Ratios of successful businesses in the industry.
4. Ratios of budgeted performance – you can calculate the ratios from budgeted performance which are then used to compare with the actual performance. Any variance that is not favourable should be investigated.
Lellah answered the question on November 8, 2021 at 09:19
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Date posted: November 8, 2021. Answers (1)
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