Which of the Following Is NOT a Benefit of Benchmarking

question 176

Multiple Choice

Which of the following is NOT a benefit of benchmarking?

• A) It helps companies determine where they can improve.
• B) It does not help management highlight company problems.
• C) It can be used to compare a company's budgets to other leading companies through the use of industry averages.
• D) It helps companies develop budgets to assist in meeting performance goals.

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Definitions:

Key Components

Essential parts or elements that are necessary for the functionality or operation of a system or process.

Standards For Comparisons

Established criteria used to measure and evaluate the performance, quality, or value of something.

Financial Analysis

The process of examining financial statements to make decisions about investments, credit, and the financial health of an entity.

Common-Size Percentages

Financial analysis tool that expresses each line item on a financial statement as a percentage of a base amount, facilitating comparison across companies or periods.