While Financial Ratios Allow a Business to Make Comparisons with the Historical

question 35

True/False

While financial ratios allow a business to make comparisons with the historical performance of that business, they do not help in attempting to compare performance with competitors.

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Definitions:

Human Resource Accounting

A method of measuring the cost and value of people in an organization, aiming to report the financial implications of employing human capital.

Managerial Tool

Instruments, techniques, or methodologies used by managers to improve decision-making, facilitate planning, or enhance productivity.

Salary Administration

The process of overseeing the compensation of employees, including the setting, distributing, and managing of salaries.

Internal Supply

The availability of existing employees within an organization who can be trained or promoted to fill vacancies.