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IIBA CBAP Practice Test - Questions Answers, Page 49

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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 481

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Following a recent, successful deployment, a business analyst (BA) has noticed that several of the requirements are candidates for reuse in multiple upcoming change initiatives. Which type of requirement is a potential candidate for re-use?

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Question 482

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A business analyst (BA) is compiling a communication plan by reviewing stakeholders and identifying the needs of the stakeholders. The BA organizes the stakeholders based on their needs and decides that all communication will be handled through e-mail so that information can be disseminated quickly and easily while maintaining a record. What has the BA missed in the stakeholder analysis?

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Question 483

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A business analyst (BA) was tasked with eliciting requirements for a new product scheduling system. The BA interviewed and discussed the requirements with the manager and supervisor. The requirements were written and approved by both the supervisor and manager. Which stakeholders were missed in the requirements?

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Question 484

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The business analyst (BA) works in a global company and the majority of stakeholders are located in different countries. The BA already explained the core requirements during the initial meetings. However, due to the time zone differences it has been cumbersome to organize further meetings. What method should the BA use so the stakeholders can review the document before final approval?

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Question 485

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An automobile manufacturer is undertaking a project intended to modify or replace the company's current timekeeping system. Negative employee reaction to change follows as word of the proposed solution spreads throughout the company. What could a business analyst (BA) do to prevent or reduce employee discontent?

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Question 486

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A business analyst (BA) is assessing the different solution proposals. What type of financial calculation would the BA use to determine which solution is worth investing in based on its breakeven point?

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Question 487

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A business analyst (BA) is working on improving solution performance and increasing value. The BA discovers that a set of interfaces and activities do not contribute to the final product either directly or indirectly. What should the BA recommend?

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Question 488

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A business analyst (BA) had identified redundancy in the process for the first contact resolution for customer issues; currently two separate divisions handle this task. A new solution identifies a single point of contact that will eliminate the redundancy. What can the BA do to highlight the required changes to the structure?

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Question 489

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A conservative company with rigorous risk control plans and internal audit rules has a recurrent problem with a core business application. As a result, access to this application must be restricted and controlled and maintenance must be onsite. However, the company feels that the application must have an emergency service team. The routine maintenance of this solution is provided by an external vendor and the vendor requested 24 hours remote access to quality and production data. In this context, what is the company's response to the vendor's request?

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Question 490

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A business analyst (BA) is assigned to a project which has two main stakeholders: a highly regulated government agency and a less formal private company. To select the business analysis approach, the BA will conduct a meeting with representatives from each entity to decide on the level of formality needed for requirements and design specifications. During the meeting, what should the BA's strategy be?

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