What is the technique used for 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.
How do you compare intra firms?
Intra-firm comparison means comparison among different units/products/strategic business unit (SBU) of a firm. and SBUs. Intra firm comparison helps the management in identifying the units/Strategic SBUs which have not been performing as per the internal benchmark or standards achieved by other units SBUs.
What are objectives of inter-firm comparison?
The main purpose of IFC is improvement of efficiency by showing the management of participating firm its present achievements and possible weaknesses. These firms have to contribute their data to the central body which acts as a neutral body.
What is the difference between inter and intra firm comparison?
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. If the performance of different units belonging to the same firm is to be compared, it is called intra-firm comparison.
What makes the intercompany comparison easier?
Inter-firm comparison will become easier with help of financial analysis as it analyses and interprets the financial information in a simplified manner. Inter firm comparison is comparison between 2 different enterprises.
Which ratio is useful for inter firm comparison?
– Book Keeping and Accountancy. Ratio analysis is useful for inter-firm comparison.
What is inter firm Intra-firm analysis?
Intra-firm efficiency involves computing a particular firm’s efficiency degree over time rel- ative to the firm-specific production frontier. Inter-firm efficiency reveals a particular firm’s performance over time relative to the “best practice frontier” among the set of comparable firms.
What do you understand by intra-firm comparison?
Intra-firm comparison means comparison of two or more departments or divisions of the same business unit with the objective of meaningful analysis in order to improve the operational efficiency of all the departments or divisions.
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.
What is inter firm Intra firm analysis?
Which makes the intercompany comparison easier?
What are the difficulties faced in inter firm comparison?
What is inter-firm Intra firm analysis?
Which ratio is useful for interfirm comparison?
What is inter-firm comparisons?
Inter-firm comparisons is a technique of evaluation of performance, efficiency, costs, profits etc. of firms producing same type of products. It consists of voluntary exchange of information/data concerning costs, prices, profits, productivity, efficiency among the concerns engaged in same industry.
What are the objectives of inter firm comparisons?
It consists of voluntary exchange of information/data concerning costs, prices, profits, productivity, efficiency among the concerns engaged in same industry. The main objective of Inter-firm comparisons is to improve the efficiency of the industry by highlighting the weakness and strengths.
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.
What is the centre for inter-firm comparison (CFC)?
For example, the Centre for Inter-Firm Comparison was established by the British Institute of Management and the British Productivity Council way back in 1959.