Which of the following is true of benchmarking?
A) It involves setting up standards and then measuring performance against them.
B) It is a series of prescribed steps to be taken to ensure that a profit will be made.
C) It sets cost targets for all phases of design, development, and production of a product for each accounting period.
D) It describes the relative proportions of a firm's assets, liabilities, and owners' equity.

Question

Quizplus · Accepted Answer

Benchmarking is a process of comparing a firm's performance against standards or best practices in the industry. It involves setting up standards or benchmarks and then measuring performance against them. This allows firms to identify areas where they are falling behind and take steps to improve their performance. Options B, C, and D do not accurately describe the process of benchmarking.

Which of the Following Is True of Benchmarking