Tamarack’s complaints per 1,000 orders rose in March. Classify the measure.

Answer

Non-financial and leading — it predicts repeat purchases and revenue

Options - A. Non-financial and lagging — it is not in dollars, so it only confirms - B. Non-financial and leading — it predicts repeat purchases and revenue - C. Financial and leading — each complaint costs money to resolve - D. Financial and lagging — it is reported after the orders shipped Why - A. Being outside the statements does not make a measure lagging; non-financial measures tend to lead. - B. Correct — complaints move first; the repeat-purchase rate and revenue move later. - C. A count of complaints is non-financial even though resolving them costs money. - D. Every measure is reported after something happened; leading means it predicts what comes next.

OpenStax Accounting v2 §12.2 (characteristics of an effective measure); Heisinger & Hoyle §13.5