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Dealing with subjects like accounts and finance you will definitely come across the topic Benchmarking and Variance Analysis. It is a highly useful domain and is of practical application for business entities. Thus it is really important to have an in-depth understanding of this topic, and that is why benchmarking and variance analysis homework help is must avail.
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WhatBenchmarking and Variance Analysis is all about?
Benchmarking is actually comparing the own business performance with the best players in the industry. Here comparison can be madein relation to profitability, the qualitative front, the production capacity, cost front, etc. The top management compares the performance on all levels with some of the best firms in the market who are dealing with the similar processes or similar products and services, and it gives an idea about how well the company is performing in their comparison.
Talking about variance analysis, it measures the performance of a company using the internal parameters.It means while calculating the variances all the aspects that are happening inside the company are accountedfor. Variance analysis tells the difference between budgeted and actual performance, and it is highly useful for the management for taking corrective actions on time. Variances can be related to costs as well as revenues.
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Importance of Benchmarking and Variance Analysis
Both Benchmarking and Variance Analysis are very useful for any business entity because of the following reasons-
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