Bench marking, Managerial Accounting

BENCH MARKING

In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking is therefore becoming more and more popular and can be defined as a systematic analysis of one’s own performance against that of another organization with an overall objective of improving performance by learning from the experience of others.

Bench marking helps an organization to understand its own business operations because of the detailed analysis that has to be carried out. Ideally performance should be compared with organizations known to be the best in the class of activities in question. From such an analysis, best practice can be identified and translated into use in the organization.

Bench marking exercise should concentrate on areas of business which are of key strategic importance to the organization and should be applied in activities where significant costs and efficiency improvements can be made.

Comparison can be made with direct competitors (competitive bench marking) or comparison can be made with the best external practitioner of the activity regardless of the industry within which they operate (functional bench marking). The internal bench marking includes comparing the performance of one part of the business with that of a different part of the same business with the major objective of establishing best practice throughout the organization. Bench marking establishes a desire to achieve continuous improvement and helps to develop a culture in which one admits mistakes and adopts or makes changes.

Posted Date: 12/8/2012 5:02:09 AM | Location : United States







Related Discussions:- Bench marking, Assignment Help, Ask Question on Bench marking, Get Answer, Expert's Help, Bench marking Discussions

Write discussion on Bench marking
Your posts are moderated
Related Questions
The Simplex Method In the graphical solution the optimum solution is always associated with a corner (or extreme) point of the solution space. The simplex method is based funda

How do the different cost classifications can assist the management

What are the Resons to use Variance analysis Variance analysis should be a continuous process for following reasons: 1) Labor rates, salary levels etc, changes due to union

In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward

select any manufacturing company of your choice that produces any product. describe and compare the marginal and absorption costing system used in the selected company

Account analysis (Inspection of accounts) method: This method requires that departmental managers and the accountant inspect each item of expenditure within the accounts for s

Std error of the slope (Sb) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. The standard error of ‘

Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu

Explain the External factors of pricing decisions 1) Demand: the market demand for a product or service obviously has big impact on pricing. Since demand is affected by fact

After going through this section, you must be capable to: Know the need for establishing sound credit policy; Identify the different credit policy variables; Know the cred