The managers of Z-Cosmetics, after identifying key measurements, decided to set performance targets for their business. In order to fulfill the purpose, they adopted a process that required management to collect data from Color Cosmetics, a leading manufacturer in the industry. The managers of Z-Cosmetics believed that adopting the best practices across the industry would help them achieve their goals more effectively. Which of the following processes is Z-Cosmetics using to set performance targets?
A) Activity-based costingB) BenchmarkingC) Total Quality ManagementD) Budgeting

The correct answer is b. Benchmarking .

Explanation:

Benchmarking is a system where some products or services and any other activity that stands out in another organization are taken as "references", in order to compare them with those carried out internally and to make improvements or adjustments to the processes. This process takes into account both leading activity or good practices, and determines to some extent levels of effectiveness that are achieved within an organization. Companies take this activity to determine their direction, emphasizing their internal situation and adapting the processes to achieve the best possible efficiency.

The correct answer is the option B: Benchmarking.

Explanation:

To begin with, the concept known as ''benchmarking'', in the field of marketing and business, refers to the procedure that is used by the companies in order to improve their future sales and it works by collecting information, or what is called also as ''benchmarks'', from one of the leaders of the industry where the company competes in and study and learn from the processes and techniques that the leader company uses to later adopt them the best as possible to achieve the goals more effectively.

To sum up, when Z-Cosmetics collects data from Color Cosmetics, a leading manufacturer in the industry, is adopting a process called benchmarking.

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