Benchmarking allows a user of financial statements of a company to compare the performance of the company against key competitors.

Question

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Benchmarking is a process of comparing a company's performance against key competitors, industry standards, or best practices in order to identify areas for improvement and opportunities for growth. This helps users of financial statements to gain insight into how well the company is performing relative to its peers and competitors.

Benchmarking Allows a User of Financial Statements of a Company