Industry norms for performance measures are important to ________.
A) determine company profitability
B) evaluate company performance on the basis of industry benchmarks
C) assign fixed costs to various departments
D) compute direct product profitability

Question

Quizplus · Accepted Answer

Industry norms provide a benchmark for evaluating company performance relative to competitors in the same industry. This enables companies to identify areas where they are outperforming or underperforming compared to the industry average and make targeted improvements. Industry norms are not directly used to determine profitability, assign fixed costs, or compute direct product profitability.

Industry Norms for Performance Measures Are Important to ________