Benchmarking Is Not About Trying to Achieve Another Company's Metrics

question 120

Multiple Choice

Benchmarking is not about trying to achieve another company's metrics, but about

• A)maintaining internal processes and customer relations to stay competitive with other companies in the industry.
• B)replicating the successful practices that lead to their outstanding metrics.
• C)trying to outperform the other company in its best practices areas.
• D)outdoing the other company in profit and reputation.

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Definitions:

Product Costs

Costs that are incurred to create a product that includes direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.

Variable Cost

Expenses that change in proportion to the activity of a business such as costs of goods sold, raw materials, and labor expenses.

Fixed Manufacturing Cost

Costs that remain constant regardless of the level of production, such as rent, salaries, and maintenance expenses.