Benchmarking That Involves Comparison with Best Practices That Occur in Any

question 47

Multiple Choice

Benchmarking that involves comparison with best practices that occur in any industry is termed:

• A) internal benchmarking.
• B) industry benchmarking.
• C) process benchmarking.
• D) external benchmarking.

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Definitions:

Output Efficiency

The optimized state where goods or services are produced at the lowest possible cost and with the best allocation of resources.

Marginal Rate

The rate at which one variable changes with respect to a slight change in another variable, often used in the context of taxes or production.

Transformation

The process of changing the structure, appearance, or character of something, often seen in economic contexts as shifts in production or technology.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics that captures the essence of trade-offs.