Which of the Following Is the Definition of Benchmarking

question 26

Multiple Choice

Which of the following is the definition of benchmarking?

• A)Benchmarking is the analysis of a financial statement that shows each item as a percentage of net sales or total assets.
• B)Benchmarking is the comparison of two companies using horizontal analysis.
• C)Benchmarking is the study of percentage changes in financial statement line items year to year.
• D)Benchmarking is the practice of comparing a company with other companies in that industry.

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Definitions:

Government Deregulation

The process of reducing or eliminating government rules controlling how businesses can operate, often to encourage more competition and innovation.

Economies of Scale

Enterprises gain cost benefits from their scale of operation, which typically results in the cost per unit of output decreasing as the scale increases.

Economic Profit

The total revenue of a business minus its explicit and implicit costs.

Government Regulation

Policies and rules established by government bodies to control and guide the activities of businesses and individuals within the society.