Which term is used to describe the process of comparing performance against benchmarks and standards?

• A. Benchmarking
• B. Forecasting
• C. Auditing
• D. Budgeting

Answer: (A)

Benchmarking is the process of comparing performance against benchmarks and standards. It helps you see how your results stack up against targets, industry norms, or peers, so you can spot gaps and set improvement actions. The steps usually involve selecting meaningful metrics, gathering data, comparing actual results to the benchmarks, analyzing why gaps exist, and then implementing changes to close them. It can be done internally (against your own past performance) or externally (against competitors or industry averages). Forecasting predicts future outcomes, auditing checks that records and controls are accurate and compliant, and budgeting plans expected revenues and expenses for a period.