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 each company's return on sales is an example of:
A) benchmarking.
B) gross margin analysis.
C) detail analysis.
D) intercompany analysis.

Question

Quizplus · Accepted Answer

The comparison of Walton Company's return on sales to the industry leader's return on sales is an example of benchmarking, which involves comparing a company's performance to competitors or industry standards. Gross margin analysis focuses on analyzing the difference between sales and cost of goods sold, and detail analysis and intercompany analysis do not directly relate to the comparison of return on sales between different companies.

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