Which of the Following Is a Common Misunderstanding About Benchmarking

question 8

Multiple Choice

Which of the following is a common misunderstanding about benchmarking?

• A) It only provides information, not answers.
• B) It is often time-consuming and labour intensive.
• C) It is a one-off project.
• D) It is a process of learning rather than copying.

---

Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on the efficient use of resources and the standard variable overhead expected.

Materials Price Variance

The difference between the actual cost of materials used and the standard cost, multiplied by the actual quantity of materials used.

Production Manager

An individual responsible for overseeing the production process, ensuring efficiency, meeting production targets, and maintaining quality standards.

Labor Rate Variance

The difference between the actual labor cost incurred and the standard labor cost for the actual hours worked.