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
Transportation Problem-Solution Solution of the Transportation Problem: The fundamental steps of the transportation method are: Step 1:       Determine a preliminary b

EMERALD LTD is planning an expansion programme,which will require Rs 30 crores & can be funded through one of the following 1.issue further equity share of Rs 100 each at par.

interest rates

1. In common, accounting period is the time period reflected by a series of financial statements.  2. In terms of taxation, it is twelve-month period a taxpayer uses to know

what are characteristics of relevant cost?

Hi there, i am looking an expert to make my assignments for this subject and i do have other subjects as well. Let me know how you can go through my assignment.

what is the topic about? what are the practical implications? what are the practical criticisms?

Schedule of Non-discretionary Data: and tables, in a form that is readable and readily understood.  This worksheet is to be used to identify/capture the various non-discretionar

A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme