Why Would an Organization Use Benchmarking

question 63

Multiple Choice

Why would an organization use benchmarking?

• A)To compete for talent
• B)To compete for market share
• C)To compete on costs
• D)To compete on product differentiation
• E)To compete for consumer loyalty

Interpret the behavior of total variable, total fixed, and total costs in relation to output level changes.

Calculate and interpret marginal cost and its relationship with average variable cost and average total cost.

Apply the understanding of cost structures to analyze optimal production techniques and cost minimization strategies.

Identify fixed and variable costs in various business scenarios.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with fixed dividends.

Net Income

The total earnings of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Earnings Per Share

A financial ratio that measures the amount of a company’s profit allocated to each outstanding share of common stock, indicating the company's profitability.

Common Shareholders

Individuals or entities that own common stock in a corporation, thus holding a share of the ownership and typically having voting rights.