Benchmarking Is

question 39

Multiple Choice

Benchmarking is:

• A)A system of performance metrics that seeks to motivate suppliers to perform better.
• B)A practice where companies attempt to learn and apply the best practices of other companies.
• C)A system of marking defective inbound inventory so it can quickly be identified for return to the supplier.
• D)A program where suppliers compete for contracts,but those companies who are outbid are provided advice for winning future contracts

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Definitions:

Marginal Cost

The additional cost incurred to produce one more unit of a good or service, highlighting the cost variations when adjusting production levels.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.

Competitively Organized

A market structure where multiple firms compete against each other, allowing for a wide range of choices for consumers and promoting efficiency.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.