What are the techniques of inter-firm comparison?
What are the techniques of inter-firm comparison?
Inter-firm comparison technique is a method of self-analysis of the business by the businessmen themselves. The management of the business on the basis of results obtained from the self-analysis is bound to react and look around for means to improve its performance or increase productivity.
What is intra and inter-firm comparison?
It means comparing the two or more than two similar types of business units. Intra firm : It is actually about the comparing of two more than two department of the same firm or the business unit.
What are inter-firm relationships?
The authors define inter-firm relationships as a broad range of relationships including strategic alliances, joint ventures, and mergers and acquisitions (M&A) or other equity-based relationships in this paper.
What are the limitations of inter firm comparison?
Limitations of inter-firm comparison :
- Top management feels that secrecy will be lost.
- Middle management is usually not convinced with the utility of such a comparison.
- In the absence of a suitable Cost Accounting System, the figures supplied may not be reliable for the purpose of comparison.
Which ratio is useful for inter firm comparison?
Ratio Analysis is useful for inter-firm comparison.
What is inter firm comparison with Example?
Inter firm comparison means a comparison of two or more similar business units with the objective of finding the competitive position to improve the profitability and productivity of those business units.
What are difficulties faced in inter firm comparison?
There is no use of inter firm comparison when different forms of business organization are compared. 6. Accounting procedures and policies followed by participating companies may not be uniform and as such accounting ratios used for comparison may not give proper results. 7.
Which analysis allow inter and intra-firm comparison of financial statements?
Ratio analysis is an accounting tool to present accounting variables in a simple, concise, intelligible and understandable form. A firm would like to compare its performance with that of other firms and of industry in general. The comparison is called inter-firm comparison.
Which financial statements facilitates inter-firm and intra-firm comparison?
Answer: Those financial statements that enable intra-firm and inter-firm comparisons of financial statements over a period of time are called Comparative Financial Statements.
What are the advantages of intra firm comparison?
1. Such a comparison gives an overall view of the firm as a whole to the owner or stakeholders and gives a comparative view of different product/different business of the firm. 2. It helps a SBU in knowing its strengths or weaknesses in relation to others SBUs.
Which statement is prepared for inter firm comparison?
Comparative Statement when prepared for comparing the enterprise’s financial statements of two or more years, is known Intra-firm Comparison.
Which statement is prepared for inter-firm comparison?
What is inter-firm comparison technique?
Inter-firm comparison technique is a method of self-analysis of the business by the businessmen themselves. The management of the business on the basis of results obtained from the self-analysis is bound to react and look around for means to improve its performance or increase productivity.
What are the prerequisites of inter-firm comparison for better understnad?
These are some prerequisites for introduction of inter-firm comparison for better understnad: The firms which agree to follow inter-firm comparison should create a central organisation for collecting, comparing and providing information to the member firms.
Is it possible to compare two firms properly?
Proper comparison between two firms is possible only when the above conditions are satisfied. However, in real world situation, it is really difficult to get firms which follow the above conditions except, to some extent, cement and sugar industry.
What are the limitations of comparison between companies?
For example, a newly started company cannot be compared with 10 years old company. Partnership firm cannot be compared with public limited company. 2. Use of Accounting Ratios Money values are not useful for comparison.
