(a)Distinguish among the following bases of comparison: intracompany, intercompany, and industry averages. (b)Give the principal value...

(a)Distinguish among the following bases of comparison: intracompany, intercompany, and industry averages.
(b)Give the principal value of using each of the three bases of comparison.

Expert Solution

a)

Intra company analyse between two or more entities within same legel entity

Inter company analyse between two or more related internal legal entities with common control

Industry averages compares the numbers of an organization with the average numbers of the entities who have similar business

b)

Principal value of using each of the three bases of comparison

The principal value of the intracompany is that one only company is used, and comparisons within that company will be used to study relationships and trends.

The principal value of the intercompany basis is that more than one company is used, and one company will be compared to another company in the same industry.

The principal value of Industry is that one company will be compared to the average of multiple other companies within that same industry.

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ekkarill92 answered 2 years ago

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