Which of the Following Statements Is True of Benchmarking

question 107

Multiple Choice

Which of the following statements is true of benchmarking?

• A) It is a systematic approach of optimizing business processes.
• B) It fails to help to improve organizational performance as benchmarking data does not provide insight into why costs or revenues differ across companies.
• C) It is difficult to ensure that the benchmark numbers are comparable due to the existence of differences across companies.
• D) It considers four major business aspects such as financial, customer, internal business processes, and learning and growth.

---

Definitions:

Sales Commission

A portion of the sale price of goods or services paid to the salesperson as a reward for making the sale.

Wash Sale Rules

IRS regulations that disallow the claim of a capital loss for tax purposes if a substantially identical security is purchased within 30 days before or after the sale.

Loss Disallowed

A financial loss that cannot be deducted from taxable income as per tax regulations, often due to specific restrictions or limitations.

Personal Residence

The primary dwelling in which a person lives, often eligible for certain tax benefits, like the deduction of mortgage interest and property taxes.