ExpertMedium2 marksMultiple Choice
ACCA · Question 32 · Performance Measurement
Section A
AgriCorp wants to improve its HR department's recruitment process. They decide to compare their recruitment metrics against those of a leading tech company known for its world-class hiring practices, even though the tech company is in a completely different industry. What type of benchmarking is this?
Section A
AgriCorp wants to improve its HR department's recruitment process. They decide to compare their recruitment metrics against those of a leading tech company known for its world-class hiring practices, even though the tech company is in a completely different industry. What type of benchmarking is this?
Answer options:
A.
Internal benchmarking
B.
Competitive benchmarking
C.
Functional benchmarking
D.
Strategic benchmarking
How to approach this question
Identify that the comparison is based on a specific function (HR recruitment) and is across different industries. This defines functional benchmarking.
Full Answer
C.Functional benchmarking✓ Correct
Functional benchmarking involves comparing a specific business function or process (like HR, payroll, or customer service) against an organization that is recognized as a leader in that specific function, regardless of what industry they operate in.
Common mistakes
Selecting competitive benchmarking, missing the fact that the companies are in different industries.
Practice the full ACCA MA — Management Accounting Practice Exam 3
38 questions · hints · full answers · grading
More questions from this exam
Q01Section A
GlobalHealth NGO is evaluating the effectiveness of its recent vaccination drive in ru...EasyQ02Section A
Quantum AI, a tech startup, classifies its costs to better understand cost behavior. S...MediumQ03Section A
MetroWater, a public utility company, uses sampling to test water quality. An automate...EasyQ04Section A
AgriYield Corp is analyzing the relationship between the amount of specialized fertili...MediumQ05Section A
TransGlobal Logistics uses time series analysis to forecast shipping volumes. The unde...Medium