Benchmarks Are NOT

question 94

Multiple Choice

Benchmarks are NOT

• A) points of comparison to use in evaluating financial statement amounts.
• B) prior period results of a company which provide trend information.
• C) competitor financial information to be used to evaluate a company's performance.
• D) evaluations of a single business in a single period.

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Definitions:

Remedial Action

Measures taken to correct or mitigate a problem, often after it has been identified through analysis or inspection.

Safety Stock

A quantity of inventory kept on hand to protect against variability in demand or lead time.

Average Demand

The mean amount of a product or service required by customers over a specific period of time, used for inventory and production planning.

Lead Time

The total time taken from the initiation of a process or project until its completion, often used in manufacturing or project planning to indicate the time needed from ordering a product to its delivery.