IIBA CBAP Practice Test - Questions Answers, Page 42

An insurance company wants to implement a business intelligence solution to consolidate data from various different internal systems to provide a better understanding of their customer base.

A business analyst (BA) is engaged to put together a tender (bid) to be sent to various business intelligence providers and implementation partners. Among other information, the business analyst requests the following:

Licensing costs for Year 0 based on meeting 1 Central Processing Unit (CPU) license

Licensing costs for specific user types such as Report Creators. Online Analytical Processing (OLAP) users and Power uses Predicted licensing costs for renewing in Years 1 ad 2

Full implementation costs

After reviewing the received vendor responses the project team shortlists the candidates to 3 and the BA structures the received information as follows:

The BA also conducts a sensitivity analysis to compare the expected costs should the company's needs grow based on the following information:

Scenario 1: Ten extra report creator, 1 extra OLAP user and 1 extra power user licenses and 2 extra CPU licenses

Scenario 2: Twenty five extra report creator, 1 extra OLAP user and 1 extra power user licenses and 3 extra CPU licenses

What is the increased cost in Scenario 2 for Company C?

An insurance company wants to implement a business intelligence solution to consolidate data from various different internal systems to provide a better understanding of their customer base.

A business analyst (BA) is engaged to put together a tender (bid) to be sent to various business intelligence providers and implementation partners. Among other information, the business analyst requests the following:

Licensing costs for Year 0 based on meeting 1 Central Processing Unit (CPU) license

Licensing costs for specific user types such as Report Creators. Online Analytical Processing (OLAP) users and Power uses Predicted licensing costs for renewing in Years 1 ad 2

Full implementation costs

After reviewing the received vendor responses the project team shortlists the candidates to 3 and the BA structures the received information as follows:

The BA also conducts a sensitivity analysis to compare the expected costs should the company's needs grow based on the following information:

Scenario 1: Ten extra report creator, 1 extra OLAP user and 1 extra power user licenses and 2 extra CPU licenses

Scenario 2: Twenty five extra report creator, 1 extra OLAP user and 1 extra power user licenses and 3 extra CPU licenses

The insurance company has a maximum budget of $810,000 for the entire implementation and operation over the first three years. Which vendor or vendors meet that criteria?

An organization is trying to streamline its current processes to improve performance and reduce costs. A business analyst (BA) conducted a process improvement workshop and identified the following issues as the top three items to be addressed:

An organization is trying to streamline its current processes to improve performance and reduce costs. A business analyst (BA) conducted a process improvement workshop and identified the following issues as the top three items to be addressed:

An organization is trying to streamline its current processes to improve performance and reduce costs. A business analyst (BA) conducted a process improvement workshop and identified the following issues as the top three items to be addressed:

An organization is trying to streamline its current processes to improve performance and reduce costs. A business analyst (BA) conducted a process improvement workshop and identified the following issues as the top three items to be addressed:

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?

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.

What could the business analyst (BA) do to gain consensus between the CFO and other Management?

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.

In order to align with the added value required from the parcel tracking solution that would be an important requirements' category for the BA to give more focus?