The Practice of Comparing a Company with Its Prior Performance

question 131

Multiple Choice

The practice of comparing a company with its prior performance or with best practices from other companies is called ________.

• A) benchmarking
• B) competitive analysis
• C) differentiation analysis
• D) budgeting

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Definitions:

Freight Costs

The charges incurred for transporting goods via air, land, or sea.

Machinery

Fixed assets used in the operation of a business to produce goods or services, often having a significant lifespan and being subject to depreciation.

Installation Costs

Expenditures associated with setting up equipment or machinery for its intended use.

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, not expected to be converted into cash within a year.