Page 29 - APM Integrated Workbook STUDENT S18-J19

Introduction to strategic management accounting

5.2 Benchmarking evaluation

Advantages Disadvantages

 Helps to assess current  Identifying best practice
strategic position. difficult.

 Sets challenging but achievable  Organisations may be unwilling
targets. to share data.

 Minimises complacency.  Differences between areas
benchmarked.
 Encourages continuous
improvement.  Lack of staff/ management
commitment .

 Too much focus on areas
benchmarked to the detriment
of overall performance.

 Time and cost.

Illustrations and further practice

Now try TYU question 9 from Chapter 1 of the Study Text.

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