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IIBA CBAP Practice Test - Questions Answers, Page 45

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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 441

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The solution presented by a business analyst (BA) to the stakeholders eliminated the need to maintain different variations of ship-to-country and location-to-route for various freight carriers. Instead, the routing would use a standard carrier code, giving the business the flexibility to just ship to new countries without raising a change request to IT which was the current road-block to business. What opportunity did the BA present to the stakeholders?

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Question 442

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While working on a major project to replace the billing mechanism at a bank, a major change in scope is discussed. Which approach does the business analyst (BA) use to help determine the formality of the assessment process to be followed to understand the impacts of the scope change?

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Question 443

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During the testing phase, a new requirement surfaced and the stakeholder asked the developer to modify the code without informing the business analyst (BA).

The BA became aware of the new functionality after a defect was raised against another component of the design. The BA can keep this situation from occurring in the future by creating a:

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Question 444

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The project manager wants to have the requirements analysis phase approved and asks the business analyst (BA) if this is possible. The BA wants to ensure that the requirements package is complete prior to closing the analysis phase. What would help the BA expedite the approval process for the analysis phase?

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Question 445

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After having created several prototypes of a new web-based application, a business analyst (BA) would like to meet with the organization's stakeholders to elicit their perception, ideas, and attitudes about the prototypes. Which of the following techniques should the BA use?

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Question 446

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A Business Analyst (BA) is tasked with presenting the requirements for an auto insurance product to domain and implementation subject matter experts (SMEs).

What requirements viewpoints should be used by the BA?

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Question 447

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A business analyst (BA) on a project is in the process of validating requirements and finds that there is a high degree of uncertainty related to one of the assumptions being true. The BA adds the assumption to the risk register and performs a full risk analysis to handle this situation. What type of strategy is in place if the organization is risk-averse?

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Question 448

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A business analyst (BA) finds that the proposed solution has features used by a small group of stakeholders for business scenarios which may occur up to three times a year but require a high effort to implement. What should the BA recommend in this case?

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Question 449

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Manufacturer O has received a merger proposal from ManufacturerK. There is concern among the senior management of Manufacturer O that regulations could shift in the future, prompting Manufacturer K to move headquarters elsewhere and close operations at the current Manufacturer O site. In assessing the proposal limitations and as part of identifying enterprise limitations, a culture assessment is completed. As part of this work, what else would the BA perform?

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Question 450

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A business analyst (BA) is preparing a governance approach. The BA is trying to define the approval process. Which factors should the BA consider?

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