In Regards to Benchmarking,which of the Following Statements Is Correct

question 112

Multiple Choice

In regards to benchmarking,which of the following statements is correct?

• A) The two main types of benchmarks in financial statement analysis include benchmarking against a prior year of the same company and benchmarking against a key competitor.
• B) Benchmarking is the practice of comparing a company with information provided by the Financial Standards Accounting Board.
• C) The Risk Management Association provides common-size statements for most industries.
• D) It is not helpful to provide common-size percentages in a graphical manner.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, pressures, or expectations.

Social Pressure

The influence exerted by a society or a social group on individuals to conform to expected norms, behaviors, or attitudes.

Negative Reinforcement

Negative Reinforcement is a psychological principle where the removal or avoidance of an undesirable outcome strengthens a behavior.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms, policies, or expectations of a group or society.