File Name: intra firm and inter firm comparison ppt to .zip
- Inter & Intra firm Comparison | Meaning | Definition | Need
- Inter-Firm Comparison: Introduction, Advantages and Limitations
- accounting standards
These solutions for Analysis Of Financial Statements are extremely popular among Class 12 Commerce students for Accountancy Analysis Of Financial Statements Solutions come handy for quickly completing your homework and preparing for exams. The following are the commonly used techniques of Financial Statement analysis :. The above listed techniques can be classified on the following basis:. On the basis of Comparison.
Inter & Intra firm Comparison | Meaning | Definition | Need
Embed Size px x x x x Accounting is considered as the language of business. Each language has certain set of rules. Thus accounting standards are certain set of rules and guidance based on the principles and methods of accounting to be followed to have uniformity in terminology approach and presentation of results. Accounting Standards 3. ICAI 4. Objective of Accounting Standards.
Inter-Firm Comparison: Introduction, Advantages and Limitations
It is technique of evaluating the performance, efficiency, costs and profits of firms in an industry. Such a comparison will be possible where uniform costing is in operation. An inter-firm comparison indicates the efficiency of production and selling, adequacy of profits, weak spots in the organisation, etc. Such a comparison may be carried out in electrical industry, printing firms, cotton spinning firms, pharmaceuticals, cycle manufacturing, etc. Advantages of Inter-firm comparison: The main advantages of inter-firm comparison are:—. The following are the limitations in the implementation of a scheme of inter-firm comparison :. Middle management is usually not convinced with the utility of such a comparison.
Thus, inter firm comparison is a tool used by the management of a company to compare its operating performance and financial results with those of similar.
Inter-firm comparison is a natural outcome of uniform costing system. Uniform costing is the foundation stone over which the structure of IFC is developed and adopted in a large scale. Interfirm comparison can be defined as the technique of evaluating the relative performance, efficiency, costs and profits of firms in a given industry. Advantages of Inter-Firm Comparison: 1. Under IFC the weakness of participating firms are revealed and the management will be guided to remedial actions.
Let us learn about Inter-Firm Comparison. After reading this article you will learn about: 1. Meaning of Inter-Firm Comparison 2.
Inter-firm comparison is a natural outcome of uniform costing system. Uniform costing is the foundation stone over which the structure of IFC is developed and adopted in a large scale. The meaning of IFC can be easily explained by considering the main object of the system. The main purpose of IFC is improvement of efficiency by showing the management of participating firm its present achievements and possible weaknesses.