Objectives of inter-firm comparison
The objectives of inter-firm comparison are as follow. The objectives are inter-linked with each other.
1. Each member-unit can try to enhance its efficiency while on comparison with other member-firms it comes to make out about its weak points.
2. The weaknesses or in economies are located and economy might be influensed by eliminating them.
3. The adequacy of profits might be computed and action can be taken to show profitability position.
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Production planning can also very much assist in cost reduction. The location and lay-out of the factory have important affect on cost.
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Result of the legal separation of the limited company from its owners is that companies have to be responsible to the tax authorities for tax on their profits and gains.
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