Homework answers / question archive / 1)Benchmarking, the measuring of a company’s operations and performance against those of world-class firms, can be applied to ratio analysis

1)Benchmarking, the measuring of a company’s operations and performance against those of world-class firms, can be applied to ratio analysis

Accounting

Share With

1)Benchmarking, the measuring of a company’s operations and performance against those of world-class firms, can be applied to ratio analysis. Give your opinion on whether or not benchmarking is a good practice. You may explain your answer using the financial ratios which you have calculated for MS Tech in ‘Section A’ earlier, as well as other figures in MS Tech financial statements and compare them to the Global Industry Average (GIA). (8 marks)

2. The MS Tech executives are asking for your input on how to reduce their annual inventory costs. Help explain to them what it means by the notion “the overall annual inventory costs represent a case of trade-offs”. (8 marks)