Arnold Company's return on sales for the most recent year was 6%. Arnold Company would like to achieve a return on sales of 8% to match those of the current industry leader. This comparison is an example of:
A)intercompany analysis.
B)benchmarking.
C)analytical goal setting.
D)detail analysis.

Question

Quizplus · Accepted Answer

This is an example of benchmarking, where Arnold Company is comparing its return on sales with that of the current industry leader to set a target for improvement.

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