For benchmarking purposes it is best to use master-budget capacity because all competitors use about the same about of capacity for production.

Question

Quizplus · Accepted Answer

Master-budget capacity represents the planned level of capacity usage for the company, but it may not be the same as competitors. Benchmarking should look at actual capacity usage and performance of competitors, not just their planned capacity.

For Benchmarking Purposes It Is Best to Use Master-Budget Capacity