In which scenario would benchmarking be least useful?

• Comparing financial ratios of a company in an extractive industry and a tertiary industry

• Comparing financial ratios of a company in a tertiary industry and a service industry

• Comparing financial ratios of a company in a secondary industry and a manufacturing industry

• Comparing financial ratios of a company in a primary industry and an extractive industry

Which of the following would explain a companys inventory turnover ratio rising from 2.5 to 3.5?

• The company's cost of goods sold has decreased while the average inventory has remained constant.

• The company's cost of goods sold has remained constant while the average inventory has decreased.

• The company's total sales has decreased while the average inventory has increased.

• The company's total sales has decreased while the average inventory has remained constant.

Which method of depreciation calculation gives a company an equal tax benefit from one year to the next?

• Activity-based

• Salvage

• Declining balance

• Straight line

What is a question that should be asked about inventory when forecasting?

• What are the current storage costs?

• Is the company's liquidity sufficient?

• How quickly can we collect cash receipts?

• What is the anticipated ratio of credit to cash sales?