answersLogoWhite

0

Gross margins analysis is primarily used as a form of business benchmarking. It's formula is: turnover - variable costs, and so ignores aspects of overheads. It is a quick, easy method of identifying areas of operational performance that are in need of further investigation.

Partial budgeting is also another cheap, quick method. It's use is for identifying alternative operations (whether it be increasing output, buying new machinery, changing enterprise etc). It interprets (although only scratches the surface) how the profit and loss accounts may be altered by the change, but its key difference to just comparing to proposed a p & l account is that it takes it as an average change per/yr. Gross margins are regulary used as a prerequisite method to using partial budgets as a way of increasing speed of calculation, but other methods can be used.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What is the difference between analysis and discussion in a research?

explain discuss


What are the characteristic differences between Rhombus?

You need two things before you can discuss difference between them!You need two things before you can discuss difference between them!You need two things before you can discuss difference between them!You need two things before you can discuss difference between them!


What is the difference between heat and product analysis in steel Why should this be?

what is the difference between product analysis and heat analysis


Whats the difference between accounts analysis and engineering analysis?

what is difference between accounts and engineering


What is the difference between heat analysis and product analysis?

manufacturing process of steel plates difference between heat and product analysis ?


What is the manufacturing difference between product analysis and heat analysis?

manufacturing process of steel plates difference between heat and product analysis ?


The difference between a trend analysis and a comparative analysis?

Difference between e-resuming system of bdjobs and phrotom alo.com


What is the difference between activity based budgeting and traditional budgeting?

The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.


What is the difference between discuss and analysis?

A discussion reflects on the overall themes and ideas of subject. During analysis, the general concepts are broken down into smaller points and examined one by one. This can include agreeing or refuting the basis of the points.


What is the difference between functional cost analysis and engineering cost analysis?

ffsdsd


Difference between dynamic analysis and static analysis of mechanical design?

k


What is the difference between anova and aov?

There is no difference.AOV = Analysis of VarianceANOVA = Analysis of Variance.