Benchmarking Identifies ______

question 24

Multiple Choice

Benchmarking identifies ______.

• A)the best practices used by other firms
• B)governmental standards that a company must meet
• C)international standards that a company must meet
• D)industry standards that a company must meet

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Definitions:

Support Department Allocation Rate

A rate used to allocate the costs of support departments to producing departments or directly to products based on relevant factors or usage measures.

Cost Drivers

Factors that cause the cost of an activity or product to change, such as production volume or raw material prices.

Support Department Cost

Expenses related to the functions that assist the direct operations or production departments of a business, such as human resources or maintenance.

Return on Investment

A metric for assessing the effectiveness or gains of an investment, determined by dividing the net earnings by the investment's expense.