Peer Group Analysis Can Be Performed By

question 10

Multiple Choice

Peer group analysis can be performed by:

• A) management choosing a set of firms that are similar in size or sales, or who compete in the same market.
• B) using the average ratios of this peer group, which would then be used as the benchmark.
• C) identifying firms in the same industry that are grouped by size, sales, and product lines in order to establish benchmark ratios.
• D) Only a and b relate to peer group analysis.

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Definitions:

Customer Support

Assistance provided by a company to its customers with the products or services it sells.

Activity-based Costing

A cost allocation technique that assigns overhead and indirect costs to relevant products and services based on the activities they demand.

Machining

The process of shaping, cutting, or altering a material using machines or tools, often used in the manufacturing of parts or components.

Activity-based Costing

Activity-based costing (ABC) is a method of assigning overhead and indirect costs to specific products or activities based on their usage.