Functional Benchmarking

question 45

Multiple Choice

Functional benchmarking

• A) is not very useful for organizations with a divisional organizational structure.
• B) endeavours to determine best practices regardless of industry.
• C) restricts the search for best practices to competitors.
• D) is useful when researching industry-specific standards.

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Definitions:

Automatic Insertion Machine

Machinery used in manufacturing processes to automatically place components onto printed circuit boards or into other assembly units.

Average Rate of Return

A financial ratio used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost, typically expressed as a percentage.

Straight-Line Depreciation

A strategy for apportioning the cost of a concrete asset into equal yearly sums throughout its serviceable life.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.