When Different Units That Perform the Same Types of Activities

question 85

Multiple Choice

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

• A)variance benchmarking.
• B)competitive benchmarking.
• C)external benchmarking.
• D)internal benchmarking.

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Definitions:

Charging to Expense

The process of recognizing a cost as an expense in the income statement during the period in which it is incurred.

Historical Cost Principle

An accounting principle requiring all financial items to be recorded based upon original cost, without adjusting for inflation or market value.

Primary Quality

Fundamental or inherent characteristics that determine the value or usefulness of something.

Model of Business Reporting

A framework or standard outlining the principles and requirements for presenting financial and non-financial information about a company's performance and position.