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SMA exam practice question 1

 

Strategic Management Accounting exam practice question

Select the answer you believe is correct then scroll down to see the correct answer and explanation.

 

As the Strategic Management Accountant for MegaFans Pty Ltd pet food company you have been asked to provide and compare sales revenues per employee for the factory in Broome and the factory in Dubbo.

What type of benchmarking is being undertaken?

 

  Industry
  External
  Internal
  Predictive

 

[SCROLL DOWN TO SEE THE ANSWER]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The correct answer is the third option.

Explanation.

Option 3 is correct because this is an example of benchmarking between locations within one organisation and is therefore internal benchmarking.

Options 1 & 2 are incorrect because industry benchmarking is comparisons between different organisations in an industry. This is an example of benchmarking between locations within one organisation.

Option 4 is incorrect because predictive benchmarking is not a recognised type of benchmarking.

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November 11, 2016

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