Multiple choice

Directions: State whether the following statement is True Or False.

Ratio analysis is a technique of planning and control.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ratio analysis is primarily a tool for financial analysis and interpretation of past performance. While it informs planning, it is not a technique of planning and control itself; budgeting and standard costing are.

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