The market share and market size variances allow firms to compare their performance with the:

Question

Quizplus · Accepted Answer

The market share and market size variances allow firms to compare their performance with the market as a whole. Market share measures the firm's sales in relation to the total market sales, while market size measures the total sales in the market. By comparing their market share and market size with the overall market, the firm can assess its performance relative to competitors and identify areas for improvement. Comparing with previous year's results or upcoming year's projections may provide some insight, but it does not give a complete picture of the company's performance in relation to the overall market. The inner workings of the company are not relevant in this context, as the focus is on external market factors.

The Market Share and Market Size Variances Allow Firms to Compare