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Control ratios: Three important ratios are usually used by the management to find out whether the variations from budgeted results are unfavorable or favorable. These ratios are expressed as percentages and any ratio beyond 100% is favorable and an ratio less than 100% is unfavorable. The three ratios are:
a) Activity Ratio: this ratio is a measure of the level of activity attained over a period.
b) Capacity Ratio: capacity ratio specifies whether and to what extent budgeted hours of activity are actually utilized..
c) Efficiency Ratio: Efficiency ratio specifies the degree of efficiency attained in production.
Laspeyres Method Laspeyres method uses the quantities consumed during the base period in computing the index number. This method is also the most commonly used method which inc
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Purpose of research: The aims of this research are to examine the effectiveness of speculation on efficiency of Petrochemical sector in Saudi Arabia financial market"TADAWUL".
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