GENERAL KNOWLEDGE

Detailed explanation-1: -Inter-firm Analysis is a comparison of financial variables of a firm over a period of time. It is also known as Time Series Analysis or Trend Analysis.

Detailed explanation-2: -Intra-firm comparison means comparison among different units/products/strategic business unit (SBU) of a firm. This comparison is possible only when uniform costing methods and practices are being adopted by all units and SBUs.

Detailed explanation-3: -Ratio analysis compares line-item data from a company’s financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how a company is performing over time, while comparing a company to another within the same industry or sector.

Detailed explanation-4: -Comparative Statement when prepared for comparing the enterprise’s financial statements of two or more years, is known Intra-firm Comparison.

Detailed explanation-5: -Intra-firm efficiency involves computing a particular firm’s efficiency degree over time rel-ative to the firm-specific production frontier. Inter-firm efficiency reveals a particular firm’s performance over time relative to the “best practice frontier” among the set of comparable firms.