A home improvement store is interested in tracking why customers return merchandise. An employee suggests developing a spreadsheet to track the reasons for returns. He suggests that the return personnel tally the following: number customers who simply changed their minds; number of customers returning items that do not perform according to specifications; and number of customers who cite that they expected different functionality from the products.

Read the requirements.

Requirement a$.$ Does the information regarding reasons for merchandise returns seem relevant for the store?

relevant and useful for the store. Managers are not able to reduce the number of returns

i$.$ Customers changing their minds:

ii$.$ Product did not perform according to specifications:

iii. Expected different functionality:

Requirement b$.$ Keeping in mind the cost$-$benefit information constraint, does the suggestion seem appropriate? Will the costs of gathering and analyzing the data as well as the potential delay in serving customers justify the benefits to be derived from analyzing the results?

When deciding to add a task or a procedure, a manager should be able to determine that the cost to perform the task$/$procedure will be the benefit realized. If the home improvement store has few returns that are not material to overall sales, then spending extra time tracking and analyzing return data

If the company is experiencing a heavy volume of returns $($also known as reverse logistics$),$ then it be cost$-$effective to track return drivers so as to de abie to reunce ietun$$o$.$