A COMPARATIVE FINANCIAL AND COST ANALYSIS IN THE MANUFACTURING INDUSTRY: A SECONDARY DATA APPROACH
A COMPARATIVE FINANCIAL AND COST ANALYSIS IN THE MANUFACTURING INDUSTRY: A SECONDARY DATA APPROACH
Authors:
Mr. Gokul S1, Mrs. Lakshmi B2
1 Student, Department Of MBA, Panimalar Engineering College, Chennai -600123
2 Assistant Professor, Department Of MBA, Panimalar Engineering College, Chennai - 600123
ABSTRACT
This study will analyze financial performance and cost effectiveness in the manufacturing sector. Given the highly competitive environment, proper cost control and financial management have become critical elements of organizational sustainability. This study will use a descriptive approach in analyzing data collected from a set of secondary data. The important methods used in financial analysis include comparative income statement, balance sheet analysis, cost structure analysis, and ratio analysis.
According to the findings of the study, the financial performance is inconsistent and is characterized by volatility of the revenues, expenses, and profit. It can be seen that the cost structure plays an important role in determining the financial performance, while the discrepancy between the expected cost and the actual cost reveals poor cost control. The results of cost variance analysis provide evidence of poor cost control as well as effective cost control.
Key words: Financial Performance, Cost Analysis, Cost Variance, Manufacturing Industry.