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In a Short Essay,explain What Benchmarking Is

question 47

Essay

In a short essay,explain what benchmarking is.What do you think are the benefits of benchmarking? Provide examples of benchmarking practices.


Definitions:

FIFO Method

Stands for "First In, First Out," a method of inventory valuation where the oldest items are sold first.

Cost Reconciliation

The process of verifying the accuracy of cost data by comparing input costs with output costs, ensuring that all costs are accounted for.

Process Inventory

Process inventory, also known as work-in-process inventory, represents goods that are partially completed in the manufacturing process but are not yet finished products.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process.

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