Which of the Following Statements Is True of Benchmarking

question 107

Multiple Choice

Which of the following statements is true of benchmarking?

• A) It is a systematic approach of optimizing business processes.
• B) It fails to help to improve organizational performance as benchmarking data does not provide insight into why costs or revenues differ across companies.
• C) It is difficult to ensure that the benchmark numbers are comparable due to the existence of differences across companies.
• D) It considers four major business aspects such as financial, customer, internal business processes, and learning and growth.

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Definitions:

Divisions Perform

Divisions perform refers to the operational and financial performance of separate business units or segments within a larger company, often evaluated to assess their contribution to the overall success of the corporation.

Production Function

An economic model that expresses the relationship between inputs and the maximum output that can be produced with those inputs.

Organizational Architecture

The structure and systems in place within an organization that shape its behavior and performance.

Intermediate Products

Goods that are produced by one enterprise for use in further processing or manufacturing by another entity.