Another Way of Evaluating a Company's Performance Is to Compare

question 146

Essay

Another way of evaluating a company's performance is to compare it to other companies.This is called benchmarking.
Required:
Explain benchmarking,including its definition,goal,and the items that benchmarking focuses on.

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Definitions:

Average Inventory

It is the mean value of inventory within a specific period, calculated to help understand inventory levels and manage them effectively.

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specified period, often used by businesses to manage liquidity.

Payments Lag

Payments lag refers to the delay between the time when an expense is incurred and the time when the payment is actually made.

Cumulative Cash

The total amount of cash generated or accumulated over a period of time, often used in the context of a company's cash flow.