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IIBA CBAP Practice Test - Questions Answers, Page 44

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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 431

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A health insurance provider undertakes enhancements to its mobile application platform and finalizes the following capabilities as part of the scope of the next release:

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Question 432

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A health insurance provider undertakes enhancements to its mobile application platform and finalizes the following capabilities as part of the scope of the next release:

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Question 433

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A health insurance provider undertakes enhancements to its mobile application platform and finalizes the following capabilities as part of the scope of the next release:

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Question 434

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A business analyst (BA) finds conflicting requirements gathered from several stakeholders. Aside from interviews, what additional activities can the BA use to safeguard against this happening?

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Question 435

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The business analyst (BA) presented a concept model during a requirements walk through to the project sponsor, implementation subject matter expert, and operational support staff. While the presentation was clear to the project sponsor, the other stakeholders were unsure about the impacts to their respective daily tasks. What should the BA include in the next walk through, so that all stakeholders have a better understanding of the requirements?

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Question 436

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A business analyst (BA) is responsible for analyzing the effectiveness of a railway ticket booking system. The BA prepared a report based on observations of the booking clerk over two days (Monday and Wednesday). According to the information gathered, the booking clerk is underutilized and spends a lot of idle time waiting for customers. What should the BA do next?

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Question 437

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A corporation is experiencing poor financial performance and needs to change many aspects of its business strategy in order to become solvent again. A business analyst (BA) is conducting a feasibility analysis and analyzing resources required. The BA has identified the existing resources, the resources that need to be increased, and the required additional capabilities. What is the other dimension this analysis should indicate?

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Question 438

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After the implementation of a new financial solution, the business analyst (BA) observes that the performance of a solution does not meet the anticipated benefits detailed in the original business case. What is a technique the BA can use to understand the reason for this?

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Question 439

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A business analyst (BA) is preparing for observation. A passive approach has been selected for establishing performance metrics.

What should be identified for the next step?

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Question 440

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A business analyst (BA) was developing an outline of the timing of business analysis activities with the project manager. What factors may impact the timing of the activities the BA is performing?

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