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
Compute the value of share of a company? A company paid dividend amounting to Rs. 0.75 each share during the last year. The company is supposed to pay Rs. 2.00 per share throug

In the current corporate world, this is a common practice of companies along with surplus cash to lend to another company for a short period generally ranging from 60 days to 180 d

For this assignment, please complete and submit Task 1 and Task 2 as described below. Task 1: Classifying Cash Flows The following are transactions, events, and changes in balances

As an MBA Managerial Accounting Student, John has asked you to evaluate the alternatives available and make recommendations as to the best course of action, and present it in a Rep

Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o

1. Do you think that the tax minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corpo- rate executives? Wh

THEORY OF METAGAMES This theory appears to describe how most people play non-zero sum games involving any number of persons. Prisoner's dilemma is an example of this; the ai

Illustration of Coefficient of Determination The production manager of XYZ Company is concerned about the apparent fluctuation in efficiency and wants to determine how labour c

Directing There are number of good plans which are never realized. To realize a plan it requires the initiation and   direction of the number of actions. Often, thes

Advance Factoring and Maturity Factoring: In both recourse and non-recourse factoring whether the factor advances cash against book debts to the client instantly on assignment