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What are the Drawbacks of benchmarking
- Benchmarking systems and programmes can be costly and time consuming
- Diversity and complexity of information can 'overload 'management e.g. so much information; management can't see the wood through the trees.
- Obtaining information to actually undertake a BM exercise can be a problem e.g. historical, absent or out of date.
- Deciding who the 'best in a class 'is?
- Keeping staff motivated e.g. staff can be criticised and once they exceed standards the standard is normally raised.
- Confidential information could be leaked or compromised when shared.
V ariable Costs It is an expense that varies directly with changes in business activities for example the cost of raw materials rise and decreases as the volume of producti
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Preferably all customers will settle within the agreed terms of trade. If this doesn't happen a company needs to have in place agreed procedures for dealing with overdue accounts.
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