Question Description
I'm working on a business discussion question and need an explanation and answer to help me learn.
Topic: Standard Industrial Classification: How Are You Doing Compared to Others?
Standard Industry Classification codes (SIC) are used for financial statement "benchmarks" analysis. Your company's financial results would need to be compared to others. SICs provide the format to compare a particular company's financial data to its respective SIC averages.
Explain how using SIC codes or competitors' financial statements as benchmarks can give you insight into how management is running a company.
How can ratio analysis help you determine what improvements need to be made?
Discuss the strengths and weaknesses of using SIC as a benchmark for your financial analysis.
Explanation & Answer
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MT480 Unit-2 Discussion
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MT480 Unit-2 Discussion
Question 1
Based on their main business operations, organizations are categorized using Standard
Industry Classification (SIC) codes. These codes offer a framework for comparing a specific
company's financial information with the SIC code-...