Cost benchmarking is a technique used to compare an organization's cost structure and expenses against those of its competitors or industry standards. It involves analyzing cost drivers, cost allocation methods, and cost-saving strategies to identify areas where cost reduction or optimization can be achieved. Cost benchmarking helps organizations understand how their costs stack up against industry norms and identify opportunities for improvement. By benchmarking costs, organizations can uncover inefficiencies, streamline processes, negotiate better pricing with suppliers, and ultimately reduce expenses, leading to improved profitability and competitive advantage.