Bench marking, Managerial Accounting

Assignment Help:

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.


Related Discussions:- Bench marking

Markov chains, Markov Chains: Markov Chains are named after the Russia...

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

Budgets and human behaviour, what are the most effective management styles ...

what are the most effective management styles in an organisation

Problrm question, The std cost of chemical mixture~PQ is as follows: 40% of...

The std cost of chemical mixture~PQ is as follows: 40% of material P @rs.400/kg 60% of material Q @rs.600/kg A std loss of 10% is normally anticipated in pdn. The followinng parti

Multiple products, differentiate between multiple product, selling product ...

differentiate between multiple product, selling product and margin managent

Service time-probability distribution curve, Service time-probability distr...

Service time-probability distribution curve A common example is that service times follow an exponential probability distribution i.e. y=e -x Service channels - t

What are the advantages of activity based costing, Advantages of activity b...

Advantages of activity based costing 1) It helps understanding the behavior of overhead costs and their relations ship to products services customers and market segments. 2)

Budget costing, Archie Ltd manufactures a product called Gizmo. It uses th...

Archie Ltd manufactures a product called Gizmo. It uses the following direct inputs: Price Quantity Cost per unit of output Direct materials $4 per gram 10 grams per unit $40 per

State direct material cost standard, State Direct material cost standard ...

State Direct material cost standard The determination of direct material cost standard would involve: a) Determination of quantity standards and b) Determination of pric

Explain the techniques of performance budgeting, Explain the techniques of ...

Explain the techniques of performance budgeting It will also be useful to examine the three major aspects of this technique: Structural aspects : the structural aspects inv

Suppliers line of credit, In this scheme, non-revolving line of credit is e...

In this scheme, non-revolving line of credit is extended to the seller to be utilized inside a stipulated period. Assistance is provided to manufactures for promoting sale of their

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd