# A present differences in the benchmarking data to

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A) present differences in the benchmarking data to managementB) highlight differences in the benchmarking data to managementC) provide insight into why costs or revenues differ across companiesD) provide complex mathematical analysisAnswer:CDiff: 2Objective:7AACSB:Analytical thinking5) Benchmarking is the continuous process of measuring products, services, and activitiesagainst the best possible levels of performance, either inside or outside the organization.Answer:TRUEDiff: 1Objective:7AACSB:Analytical thinking6) Coast to Coast Bus Lines acquired the following data about the operating cost of three ofits top competitors.
Operating cost per seat per mileCompetitor A\$.11Competitor B\$.15Competitor C \$.16Management decides touse the average operating cost per seat per mile as a mark.Coastto Coast per seat is 12.5 cents per mile.A) It is equal to the markB) It compares favorablyC) It compares unfavorablyD) It compares favorably to the best performing competitorAnswer:BDiff: 2Objective:7AACSB:Analytical thinking7) It is difficult for firms to find appropriate benchmarks because differences can existacross companies in their strategies, inventory costing methods, depreciation methods, andso on.Answer:TRUEDiff: 2Objective:7AACSB:Analytical thinking8) When benchmarking it is best when management accountants simply analyze the costsand allow management to provide the insight as to why the revenues and costs differbetween companies.Answer:FALSEExplanation:When benchmarking, management accountants are more valuable when theyanalyze the costs and also provide management with insight as to why the revenues andcosts differ between companies.Diff: 1Objective:7AACSB:Analytical thinking
9) What is benchmarking, and how is it useful to a company?Answer:Benchmarking is the continuous process of comparing the levels of performancein producing products and services and executing activities against the best levels ofperformance in competing companies or in companies having similar processes. Companiescan examine aspects of their own operations in comparison to similar operations and see ifthey are operating at a disadvantage. Benchmarking might provide targets andopportunities to cut costs, and might even show where they have a competitive advantageover similar companies.Diff: 2Objective:7AACSB:Analytical thinking
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