Walton Company's return on sales for the most recent year was 5%.The industry leader reports a return on sales of 7%.The comparison of Walton Company's return on sales to the industry leader is an example of:
A)benchmarking.
B)gross margin analysis.
C)detail analysis.
D)intercompany analysis.

Question

Quizplus · Accepted Answer

Benchmarking involves comparing a company's performance to that of industry leaders or competitors. In this case, the comparison of Walton Company's return on sales to the industry leader's return on sales is an example of benchmarking. Gross margin analysis, detail analysis, and intercompany analysis are not relevant to this scenario.

Walton Company's Return on Sales for the Most Recent Year