Question 1

A heavy machinery manufacturer wants to improve its warehouse inventory management. Instead of comparing itself to other machinery manufacturers, it sends a team to study the inventory management processes of a leading global e-commerce retail giant.

What type of benchmarking is this?

Accepted Answer

Identify that they are looking at a specific *function* (inventory) in a completely different *industry*.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting competitive benchmarking, missing the fact that an e-commerce giant is not a direct competitor to a heavy machinery manufacturer.

A heavy machinery manufacturer wants to improve its warehouse inventory management. Instead of comparing itself to other machinery manufacturers, it sends a team to study the inventory management processes of a leading global e-commerce retail giant.

What type of benchmarking is this?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 5

More questions from this exam