An Accounting Firm Realizes It Is Woefully Inadequate at Cultivating

question 28

Multiple Choice

An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to observe a law firm perform the new-client cultivation process in hopes of gleaning improved methods it can adopt. This is an example of:

• A) competitive benchmarking.
• B) functional benchmarking.
• C) internal benchmarking.
• D) generic benchmarking.

---

Definitions:

Unit Variable Cost

The variable cost associated with producing one unit of a product, including materials, labor, and other costs that vary with production volume.

Special Unit Price

A unique price offered for a product or service, typically different from the standard pricing.

Regular Sales Price

Regular sales price refers to the standard price set for a product or service before any discounts or promotions are applied.

Salvage Value

An estimate of an asset’s value at the end of its useful life.