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The table illustrates the statement of cash flows for a courier company for the last fiscal year. Due to aggressive market competition, the management of the company performed a strategy review and based on their findings and the current market conditions they came up with strategic and tactical changes in order to keep a competitive market position. In order to strengthen customer retention strategies through a new competitive advantage, the company is considering implementing a live parcel tracking system. The added value will be that the customers may determine the exact location of the parcel whether it is in a warehouse, crossing the ocean through an overseas ship, or travelling in a delivery truck at any time. The system tracks the location of the parcel by tracking the vehicle in which it is contained. However, for a group of old delivery trucks, it was noticed that the engine sound and vibration disturbed the tracking signal and caused interruptions. Therefore, the tracking does not perform accurately on these vehicles. Although the majority of management would like to sell these vehicles and replace them with newer ones, the Chief Financial Officer (CFO) was strongly against that approach. The CFO argued that instead of hanging tracking devices on the trucks' body, they can have the truck drivers manually send the truck location from a hand held mobile device every 30 minutes. The company has a total of 134 old delivery trucks that have been in service for 10 years. Each vehicle was bought at a price of $22,000. Depreciation is done using a straight line basis and it is estimated that the vehicle depreciates at $1000 per year. The estimated salvage value per vehicle is about $3,000. Another area of tactical improvement for the courier company is pricing. The management strongly believes that they can start a price war with the most aggressive competitor. Management thinks, with their variable cost of $4 per parcel and fixed cost of $6 per parcel, they can win the market. However, after implementing the tracking solution, fixed cost will jump to $8 per parcel which made management reconsider their options. The competitor has variable costs of $5 per parcel and fixed costs o $7 per parcel. The CFO's resistance to replacing the older vehicles represents which type of cost?





Question 391

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A software development company is in the process of creating a new product for their customer base. It has been several years since such a project has been initiated and the organization has created a new team to own and develop the product. The project team will be evaluated by the successful adoption of the product, which will be developed over the next 12 months.

The team's business analyst (BA) has analyzed the current state in partnership with the product owner and has been meeting with senior management to identify the goals that need to be attained. A broad view of the business has been analyzed in order to have an understanding of how the company is currently providing value to its customer base.

What has the BA been identifying that will be used to evaluate the solution?

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Question 392

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A software development company is in the process of creating a new product for their customer base. It has been several years since such a project has been initiated and the organization has created a new team to own and develop the product. The project team will be evaluated by the successful adoption of the product, which will be developed over the next 12 months.

The team's business analyst (BA) has analyzed the current state in partnership with the product owner and has been meeting with senior management to identify the goals that need to be attained. A broad view of the business has been analyzed in order to have an understanding of how the company is currently providing value to its customer base.

What has the BA evaluated to help determine value of the project?

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Question 393

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A major manufacturer of popular beverages has appointed a local distributor to serve a specific territory. The demand for the beverages has a pronounced seasonal pattern. The distributor performs well overall, but is repeatedly unable to keep up with fulfilling many customer orders during peak demand periods. The distributor's current delivery capability is stretched to deliver 60 tons of merchandise per day whereas the season's peak demand periods need a daily delivery capability of up to 100 tons.

The distributor is under pressure to fully meet the year-round market demand in order to stay in business. The distributor's management wants to identify and consider more cost-effective options as resorting to adding more trucks and drivers would not be economically feasible.

A business analyst (BA) has spent several days observing and measuring the warehouse activities to understand the situation and to gain insights into possible solutions. The delivery workflow is a four-step process: (1) picking the orders and assembling them on trays, (2) bringing the trays to the loading bay, (3) loading the orders into trucks, and (4) delivering the orders to customers. As the following table illustrates, overall performance depends is dependent on five major resources: (1) the workers who pick the orders and load them into trucks, (2) the tallyers who check the orders, (3) the drivers, (4) the trucks, and (5) eight loading bays (LBs).

What is the company's primary business objective in this scenario?

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Question 394

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A major manufacturer of popular beverages has appointed a local distributor to serve a specific territory. The demand for the beverages has a pronounced seasonal pattern. The distributor performs well overall, but is repeatedly unable to keep up with fulfilling many customer orders during peak demand periods. The distributor's current delivery capability is stretched to deliver 60 tons of merchandise per day whereas the season's peak demand periods need a daily delivery capability of up to 100 tons.

The distributor is under pressure to fully meet the year-round market demand in order to stay in business. The distributor's management wants to identify and consider more cost-effective options as resorting to adding more trucks and drivers would not be economically feasible.

A business analyst (BA) has spent several days observing and measuring the warehouse activities to understand the situation and to gain insights into possible solutions. The delivery workflow is a four-step process: (1) picking the orders and assembling them on trays, (2) bringing the trays to the loading bay, (3) loading the orders into trucks, and (4) delivering the orders to customers. As the following table illustrates, overall performance depends is dependent on five major resources: (1) the workers who pick the orders and load them into trucks, (2) the tallyers who check the orders, (3) the drivers, (4) the trucks, and (5) eight loading bays (LBs).

If the driver's average throughput is 0.6 tons/hour, how many hours per day would 15 drivers have to work to deliver 100 tons of merchandise?

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Question 395

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A major manufacturer of popular beverages has appointed a local distributor to serve a specific territory. The demand for the beverages has a pronounced seasonal pattern. The distributor performs well overall, but is repeatedly unable to keep up with fulfilling many customer orders during peak demand periods. The distributor's current delivery capability is stretched to deliver 60 tons of merchandise per day whereas the season's peak demand periods need a daily delivery capability of up to 100 tons.

The distributor is under pressure to fully meet the year-round market demand in order to stay in business. The distributor's management wants to identify and consider more cost-effective options as resorting to adding more trucks and drivers would not be economically feasible.

A business analyst (BA) has spent several days observing and measuring the warehouse activities to understand the situation and to gain insights into possible solutions. The delivery workflow is a four-step process: (1) picking the orders and assembling them on trays, (2) bringing the trays to the loading bay, (3) loading the orders into trucks, and (4) delivering the orders to customers. As the following table illustrates, overall performance depends is dependent on five major resources: (1) the workers who pick the orders and load them into trucks, (2) the tallyers who check the orders, (3) the drivers, (4) the trucks, and (5) eight loading bays (LBs).

Each truck can only make two trips a day. The BA has noticed that only 30% of trips have their orders available for loading when a truck arrives. Otherwise the truck has to wait one extra hour until the orders are picked and brought to the loading bay.

If trucks are the only constraint, approximately how many hours are lost due to this downtime?

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Question 396

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A major manufacturer of popular beverages has appointed a local distributor to serve a specific territory. The demand for the beverages has a pronounced seasonal pattern. The distributor performs well overall, but is repeatedly unable to keep up with fulfilling many customer orders during peak demand periods. The distributor's current delivery capability is stretched to deliver 60 tons of merchandise per day whereas the season's peak demand periods need a daily delivery capability of up to 100 tons.

The distributor is under pressure to fully meet the year-round market demand in order to stay in business. The distributor's management wants to identify and consider more cost-effective options as resorting to adding more trucks and drivers would not be economically feasible.

A business analyst (BA) has spent several days observing and measuring the warehouse activities to understand the situation and to gain insights into possible solutions. The delivery workflow is a four-step process: (1) picking the orders and assembling them on trays, (2) bringing the trays to the loading bay, (3) loading the orders into trucks, and (4) delivering the orders to customers. As the following table illustrates, overall performance depends is dependent on five major resources: (1) the workers who pick the orders and load them into trucks, (2) the tallyers who check the orders, (3) the drivers, (4) the trucks, and (5) eight loading bays (LBs).

Preparing a customer order for loading takes about one hour. Upon the BA's observation, only 30% of trips have their orders available for loading when a truck arrives. This causes a waste of both the truck's and the driver's time.

What should the BA recommend to eliminate such waste?

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Question 397

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Company A is a nation-wide leader in commercial demolition. Having just celebrated its 100th year of operations, the company decided to begin doing work internationally. The current system used for reporting company finances is unable to keep pace with the potential demands of doing work in geographically dispersed locations. Therefore, the company decided to replace its client-based Profit & Loss (P&L) reporting system with a more robust, web-based system. This will ensure transparency across the organization and enable better decision making.

The business analyst (BA) at Company A has recently completed several rounds of elicitation to determine the requirements for the new, web-based system.

Over 1250 requirements were elicited. An initial Requirements Traceability Matrix (RTM) has been drafted, and a subset of the RTM can be seen below:

While verifying the requirements, the BA notices that Requirement ID NFO0003 does not meet the "unambiguous" or the "testable" characteristics of requirements quality. The BA plans to re-write the requirement.

Which of the following requirements is both unambiguous and testable?

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Question 398

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Company A is a nation-wide leader in commercial demolition. Having just celebrated its 100th year of operations, the company decided to begin doing work internationally. The current system used for reporting company finances is unable to keep pace with the potential demands of doing work in geographically dispersed locations. Therefore, the company decided to replace its client-based Profit & Loss (P&L) reporting system with a more robust, web-based system. This will ensure transparency across the organization and enable better decision making.

The business analyst (BA) at Company A has recently completed several rounds of elicitation to determine the requirements for the new, web-based system.

Over 1250 requirements were elicited. An initial Requirements Traceability Matrix (RTM) has been drafted, and a subset of the RTM can be seen below:

The risk associated with Requirement ID F-P0001 is HIGH. The BA has gone back to the Crew Chief to determine why this requirement's risk is HIGH. The Crew Chief stated that it was based on an assumption.

Which of the following assumptions would make this requirement's risk high?

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Question 399

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Company A is a nation-wide leader in commercial demolition. Having just celebrated its 100th year of operations, the company decided to begin doing work internationally. The current system used for reporting company finances is unable to keep pace with the potential demands of doing work in geographically dispersed locations. Therefore, the company decided to replace its client-based Profit & Loss (P&L) reporting system with a more robust, web-based system. This will ensure transparency across the organization and enable better decision making.

The business analyst (BA) at Company A has recently completed several rounds of elicitation to determine the requirements for the new, web-based system.

Over 1250 requirements were elicited. An initial Requirements Traceability Matrix (RTM) has been drafted, and a subset of the RTM can be seen below:

The BA will create a Data Model to meet which requirement?

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Question 400

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Company A is a nation-wide leader in commercial demolition. Having just celebrated its 100th year of operations, the company decided to begin doing work internationally. The current system used for reporting company finances is unable to keep pace with the potential demands of doing work in geographically dispersed locations. Therefore, the company decided to replace its client-based Profit & Loss (P&L) reporting system with a more robust, web-based system. This will ensure transparency across the organization and enable better decision making.

The business analyst (BA) at Company A has recently completed several rounds of elicitation to determine the requirements for the new, web-based system.

Over 1250 requirements were elicited. An initial Requirements Traceability Matrix (RTM) has been drafted, and a subset of the RTM can be seen below:

The BA is working on identifying additional improvement opportunities based on these requirements.

Which of the following improvement opportunities is reflected in Requirement ID NFP0002?

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