Certified Professional Public Buyer (CPPB) Practice Test

The primary goal of benchmarking regularly is to?

1. Decrease operational costs

2. Identify employee performance issues

3. Determine if costs outweigh benefits

4. Increase customer satisfaction ratings

The correct answer is: Determine if costs outweigh benefits

The primary goal of benchmarking regularly is to assess organizational performance against industry standards or best practices, which ultimately leads to a better understanding of whether the costs associated with operations are justified by the benefits being derived. By engaging in benchmarking, organizations can identify areas where they may be underperforming or overinvesting, thereby facilitating informed decision-making regarding resource allocation, strategic initiatives, and areas needing improvement. While the other options touch on components that could be evaluated through benchmarking, such as operational costs or customer satisfaction, the essence of benchmarking is centered on comparing performance metrics to derive actionable insights. This process often reveals whether the costs incurred by the organization are leading to meaningful benefits, thereby ensuring that the overall strategy aligns with expected outcomes.