Question

An example of a competitive financial benchmark is

A. The labor rate of comparably skilled employees at a major competitor's plant.
B. A data cap on the information technology department at each plant.
C. The average actual cost per pound of a specific product at the organization's most efficient plant.
D. The customer satisfaction rating of a comparable process from an organization in a different industry.

Answer 1

The best example of a competitive financial benchmark is the labor rate of comparably skilled employees at a major competitor's plant, as it offers a direct industry-specific comparison.

Step-by-step explanation:

The concept of competitive financial benchmarking involves comparing one's business performance against competitors or industry standards to identify areas of improvement. In the context of the provided options, the best example of a competitive financial benchmark would be The labor rate of comparably skilled employees at a major competitor's plant.

This reflects a direct comparison to a competing entity in the same industry. Benchmarks such as data caps on information technology departments or customer satisfaction ratings from different industries may offer value, but they do not represent the competitive financial benchmarking intended to compare with direct market competitors. In the same vein, the average actual cost per pound of a specific product at the organization's most efficient plant is an internal benchmark and not a competitive comparison.