The performance of the managers of a large retail store is evaluated with respect to four performance
Question:
The performance of the managers of a large retail store is evaluated with respect to four performance criteria:
Criterion 1: Customer-to-staff hours ratio - the number of customers served divided by the total number of staff hours used. The target for each store is 6.5, i.e. for each hour of staff rostering, 6.5 customers are served.
Criterion 2: Total customers (percentage of target) - each store has a monthly target based on previous years' data and expected growth. The target for each store is 100%.
Criterion 3: Average customer spend - the target is that the customers spend an average of $11.50 per visit.
Criterion 4: Average service time - the service time is the total time to service a customer. This is a measure of how efficiently the staff are working to serve the customers quickly. Customers hours at Total customers Average spend per customer Average service time.
(1) Regarding, the Customer (to staff hours ratio, which of the transform methods should be used?
Please type “log transformation’, “square root transformation’ of "min-max transformation
(2) Is a negation transformation needed for Total customers (percentage of target)?
Pease type “Yes” of “No*. b
(3) Regarding, the Average service time, which transformation method should be used?
“log transformation’, “square root transformation’ of "min max transformation or z-score transformation.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young