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Introduction to strategic management accounting

5.2 Benchmarking evaluation

Advantages Disadvantages

 Helps to assess current  Identifying best practice difficult
strategic position
 Organisations may be unwilling
 Sets challenging but achievable to share data
targets
 Differences between areas
 Minimises complacency benchmarked

 Encourages continuous  Lack of staff/ management
improvement 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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