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Hareplity Hareplity
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Countless measures could be captured and reported to managers. The best measures relate to corporate strategy and are SMART.

Required:

Explain the five components of SMART and give an example of each component.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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illusionldillusionld
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Specific — relates clearly and directly to the process it measures.
Example — A specific measure of evaluating a customer complaint at a call center might be "number of complaints satisfied in a call"

Measurable — it is complete and accurate and is based on actual results rather than on estimates.
Example — When measuring whether or not a product has achieved a particular quality standard, a measure would be "number of warranty claims with 90 days."

Actionable — something can be done to influence its value.
Example — as a measure of a salesperson's performance might be "total sales revenues generated per quarter."

Relevant — relates to a corporate strategic objective
Example — If a goal is to reduce employee turnover, a relevant measure might be the "number of voluntary employer terminations."

Timely — to be useful, a measure must be timely
Example — In monitoring and correcting current production processes, "yesterday's (or the last hour's) defect rates" might be a more appropriate measure than last year's product defect rates.

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Hareplity Author
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A month ago
Thanks
IvanaVR
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Yesterday
Brilliant ツ
kriggs62
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2 hours ago
Good timing, thanks!
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