The management of Z-Cosmetics,after identifying key measurements,decided to set performance targets for its business.In order to fulfill the purpose,it adopted a process which required the management to collect data from Color Cosmetics,a leading manufacturer in the industry.The managers of Z-Cosmetics believed that adopting the best practices across the industry would help them achieve their goals more effectively.Identify the process used by Z-Cosmetics to set performance targets.
A) Activity-based costing
B) Benchmarking
C) Total Quality Management
D) Budgeting

Question

Quizplus · Accepted Answer

Z-Cosmetics used benchmarking to set performance targets by collecting data from a leading manufacturer in the industry and adopting the best practices. Benchmarking involves comparing performance metrics and processes against industry or competitor standards to identify areas for improvement and set targets. Activity-based costing, total quality management, and budgeting are different methods for managing and improving business performance.

The Management of Z-Cosmetics,after Identifying Key Measurements,decided to Set Performance