Which of the Following Is an Example of Benchmarking

question 37

Multiple Choice

Which of the following is an example of benchmarking?

• A) An online retailer of computer accessories comparing the way it organises its warehouse with an online retailer of books.
• B) A dishwasher manufacturer comparing the energy efficiency of its own products against competitors.
• C) A hotel chain comparing room cleaning times in all its hotels.
• D) All of the above.

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like wages or lease payments.

Marginal Costs

The extra expense incurred from making one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, showing the cost of producing each unit.

Marginal Cost

The cost incurred to produce one additional unit of a product or service.