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Please rephrases- Financial reports of different firms vary according to the dissimilar categories of costs involved in their business process. Financial report of firm A should ensure that firm A account for their material costs in a persistent manner, since it is a major component of cost of goods sold. If management of firm A focuses on their overall productivity ratios, the comparison could be stronger. Overall productivity of Firm A is higher in comparison to firm B. However, they should focus on their labor productivity.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92523491

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