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Basic Question 2 of 10
When benchmarking operating margins, it is most meaningful to compare a company's margin to:
A. Industry averages
B. Competitors with different business models
C. Historical margins of the company
D. Future projected margins
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Colin Sampaleanu
Learning Outcome Statements
evaluate whether economies of scale are present in an industry by analyzing operating margins and sales levels;
demonstrate methods to forecast cost of goods sold and operating expenses;
demonstrate methods to forecast nonoperating items, financing costs, and income taxes;
CFA® 2024 Level II Curriculum, Volume 2, Module 17.