Finance function activities, benchmarking (continuation of 7-26).Josh Sanchez, CFO of Bouquets.com, engages The Hackett Group, a consulting firm specializing in benchmarking.

He asks Flackett to provide benchmark data of the finance function at “world-class” retail companies (both traditional retail and Internet-based retail). Hackett’s cost benchmarks for Bouquet.com’s three finance activities are Finance Activity “World-Class” Cost Performance Receivables $0.12 per remittance Payables $0.85 per invoice Travel expenses $1.90 per travel claim 274 CHAPTER 7 Required 1. What new insights might arise with the Hackett benchmark data using the amounts in Exercise 7-26?

2. Assume you are in charge of travel-claim processing. What concerns might you have with Sanchez, using the Hackett benchmark of $1.90 per travel claim as the key to evaluate your performance next period?