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What Is Benchmarking and Why Is It Used

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What is benchmarking and why is it used?


Definitions:

Markup

The extra sum included in the buying price of items to account for operational expenses and profit, which establishes the sales price.

Job-Order Costing

A cost accounting system that assigns costs to specific jobs or batches, used in industries where products are distinctly different.

Predetermined Overhead Rate

An estimated overhead rate used to apply manufacturing overhead to products, calculated before the accounting period begins.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for allocating overhead costs.

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