Sam Chase of Flowers.co.uk receives a brochure from the Hackett Group, a consulting firm specialising in benchmarking. He asks the Hackett Group to provide benchmark data from its recent study of the finance function at over 100 retail companies (both traditional retail and Internet-based retail). Hacketts' 'world-class' cost benchmarks for Flowers.co.uk's three finance activities are:

Required
1. What new insights might arise with the Hackett benchmark data using the budgeted amounts in Exercise 15.21?
2. Assume you are in charge of travel and expense report processing. What concerns might you have with Sam Chase using the Hackett benchmark of £1.58 per expense report as the key to evaluate your performance next period?

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World-class Finance activity cost performance Creditors Debtors Travel and expenses £0.71 per invoice £0.10 per remittance £1.58 per expense report